#United States #California #Home Sales #C.A.R.

California Home Sales Surge in October

In a promising turn of events for the California housing market, home sales experienced a notable surge in October 2025. According to the latest report from the California Association of Realtors (C.A.R.), existing single-family home sales rose to an annualized rate of 282,590, marking a 1.9% increase from September's figures. This surge not only reflects a rebound from the previous month but also signifies a 4.1% increase from October 2024. The data collected from over 90 local realtor associations indicate that October stood out as the month with the highest home sales levels since February of this year.

The statewide median home price for October saw a slight rise of 0.4% from September, reaching $886,960. However, it shows a marginal decline of 0.2% compared to the median price of $888,740 from a year ago. In addition, the year-to-date home sales have revealed an uptick of 0.8%, showcasing a recovering trend as we approach the end of 2025.

Market experts, led by C.A.R. President Tamara Suminski, attribute the rise in home sales to improving housing demand, which has now succeeded for three consecutive months. Despite the slight rise in mortgage rates observed since late October, the market continues to display dynamism, with buyers facing promising opportunities.

Trends in Home Prices

The October results indicate a steadfast growth in home prices, albeit at a much more manageable pace compared to previous years. Suminski highlighted that a healthier interaction between buyers and sellers is developing as the market stabilizes. As we look into 2026, the signs suggest a favorable period for those contemplating a move in the California real estate landscape.

However, despite the positive sales figures, caution remains regarding mortgage rate volatility. This uncertainty might still deter prospective homebuyers, suggesting that a broader recovery in the housing market could be further delayed.

C.A.R. Senior Vice President and Chief Economist Jordan Levine provided insights on the constant fluctuations of mortgage rates, explaining that these rates, which had seen a dip to a 12-month low in October, have once again resumed an upward trend due to the Federal Reserve's cautious stance amid economic uncertainties.

Regional Insights

Looking closely at regional statistics reveals notable variances in performance across California's major regions. The Far North led the state with an impressive 18% year-over-year increase in sales, while other regions such as Southern California (5.6%), Central Valley (4%), and San Francisco Bay Area (2.5%) also witnessed positive movements. Interestingly, Central Coast sales recorded a slight decline of 1.5% year-over-year.

At the county level, impressive sales spikes were observed in Trinity County, which experienced a staggering growth of 85.7% compared to October of the previous year. Despite this overall uplift, several counties including San Benito (-18.4%), San Luis Obispo (-15.2%), and Tehama (-12%) reported declines.

Looking Ahead

As expectations for the housing demand landscape evolve, the Unsold Inventory Index (UII) displayed a decrease to 3.2 months in October compared to 3.6 months in September. This trend typically reflects seasonal patterns as the housing market transitions into a quieter offseason. Additionally, the median days on the market for homes stood at 32 days, an uptick from 25 days last year, indicating a slight slowdown in the pace of sales.

In summary, the October data presents a dynamic portrait of California's housing market. While challenges remain, the growth in sales coupled with a relatively stable home price outlook provides optimism for the months ahead. With a strong demand for housing still present, stakeholders are encouraged to remain informed as we navigate through the complex yet promising Californian real estate landscape.