State housing market bounces back slightly

Sales of single-family homes in California rose slightly in August, the result of an improvement in mortgage rates and a leveling off of home prices.

Closed escrow sales totaled 264,240 last month, a 0.9 percent increase from July, and essentially unchanged year-over-year, according to the California Association of Realtors.

Those numbers were annualized, meaning they reflect what would be the total number of homes sold during 2025 if sales maintained their August pace during the entire year. They also take into account seasonal factors that influence the housing market.

“August’s sales marked the fifth consecutive month of year-over-year sales declines” the association reported. “It was also the 35th straight month in which the seasonally adjusted sales rate remained below the 300,000 benchmark.”

The state’s median home price was $899,140, up 1.7 percent month-over-month and 1.2 percent from August 2024.

Sales were down 0.4 percent during the first eight months of 2025 compared with the same period last year.
“Soft sales demand led to a steady decline in California’s median home price for three consecutive months through early summer,” said Jordan Levine, the association’s chief economist, in the statement. “The market appears to have found a short-term balance between supply and demand.”

In the Inland Empire, the $600,130 median home price was a 1.9 percent increase month-over-month and a 2.5 percent increase year-over-year, while sales were down 4.6 percent and 2.8 percent, respectively, according to the association.