• Existing, single-family home sales totaled 288,200 in December on a seasonally adjusted annualized rate, up 0.3 percent from 287,450 in November and up 2.0 percent from 282,490 in December 2024.
  
  
• December's statewide median home price was $850,680, down 0.4 percent from $853,780 in November and down from $861,020 in December 2024.
  
  
• For 2025 as a whole, sales of existing statewide homes were up 0.9 percent from 2024, and the annual median price was up 1.2 percent from 2024.

SACRAMENTO (Jan. 15) – California's housing market ended the year on a high note as sales rose in December from both the previous month and year for the fourth consecutive month, and closed the year nearly 1 percent higher than in 2024, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2025-12-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 288,200 in December, according to data collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. This annualized figure reflects the number of homes that would be sold in 2025 if December's sales pace continued throughout the year, with adjustments made for typical seasonal patterns.

December sales inched up 0.3 percent from 287,450 in November. Compared with a year earlier, December sales were up 2.0 percent from a revised 282,490. For the year as a whole, the state recorded an annual sales level of 271,590, an increase of 0.9 percent from the revised sales level of 269,170 reported in 2024.

Statewide pending home sales were virtually flat with a slight 0.2 percent year-over-year decline in December. On a month-to-month basis, however, pending sales fell sharply by 21.5 percent, reflecting typical seasonal slowing compounded by heightened mortgage rate volatility and growing economic uncertainty.

"California's housing market closed out 2025 on solid footing, with both home sales and available inventory improving over the prior year," said 2026 C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. "As price growth eased toward the end of the year and mortgage rates fell to near-three‑year lows, the stage is set for a more optimistic 2026. We expect increased opportunities for buyers and a healthier, more balanced market in the months ahead."

California's median home price fell in December from both the prior month and a year earlier, dropping to a 10-month low of $850,680 as market competition cooled more than is typical for the season. The statewide median price declined 0.4 percent from November, defying the historical average 0.9 percent increase between November and December. This marked the second year-over-year drop in the past three months, as well as the largest annual decline since June 2023. Softer demand and elevated inventory continued to weigh on prices at the end of 2025, paving the way for a more balanced market for buyers and sellers entering 2026.

"Housing affordability showed some improvement in the fourth quarter, and the combination of lower mortgage rates and a growing supply of homes should encourage more prospective buyers to enter the market this year," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "While some policy uncertainty remains as we look ahead to the next 12 months, our outlook calls for modest economic growth and continued progress for the housing market in 2026."

Other key points from C.A.R.'s December 2025 resale housing report include:

• At the regional level, all major California regions recorded year-over-year increases on a non-seasonally adjusted basis. The Far North (23.5 percent) and Central Coast (12.8 percent) stood out as the only regions with double-digit gains from a year earlier. Meanwhile, the Central Valley (5.5 percent), San Francisco Bay Area (2 percent) and Southern California (1.7 percent) all posted more modest annual sales gains. With mortgage rates sliding a full percentage point since a year ago, housing markets across the state are finally seeing a light at the end of the tunnel, and home sales in California should continue to improve, albeit moderately, in the next 12 months.
  
• At the county level, 39 of the 53 counties tracked by C.A.R. posted year-over-year sales gains in December, with more than half of those counties (22) recording double-digit increases. Plumas led the pack with a 133.3 percent surge, followed by Mono (100 percent) and Lassen (44.4 percent). Meanwhile, 13 counties experienced annual sales declines, including three that fell by more than 10 percent, led by Del Norte (-50 percent), Mariposa (-35.3 percent), and Madera (-12.3 percent).
  
  
• Three of California's five major regions recorded year-over-year increases in their median home prices. The Far North posted a moderate gain of 2.8 percent from December 2024, followed by Southern California with a 0.6 percent increase and the Central Coast region with a slight 0.2 percent uptick. In contrast, the Central Valley recorded a drop of 1.4 percent from a year ago, while the San Francisco Bay Area's median prices were unchanged.
  
• At the county level, 22 of the 53 counties tracked by C.A.R. recorded year-over-year median home price gains. Mono led with a 27.1 percent increase, followed by Imperial (21.5 percent) and Lassen (18.1 percent). Conversely, 30 counties posted annual price declines while Solano's price was unchanged. Trinity experienced the steepest drop (-23 percent), followed by Glenn (-18.6 percent) and Siskiyou (-15.5 percent).
  
  
• Housing inventory in December declined from the prior month and prior year, as market conditions slowed housing demand and lengthened the time listings stayed on the market. The Unsold Inventory Index was 2.7 months in December, down from 3.6 months in November and flat from 2.7 months in December 2024. While total active listings increased from a year ago for the 23rd consecutive month, the annual gain recorded in December was the smallest since February 2024. December also marked the eighth consecutive month of decelerating inventory growth, indicating that while housing supply remains elevated, momentum on the supply side is gradually easing as the market moves through its typical off-season.
  
  
• The median number of days it took to sell a California single-family home was 36 days in December, up from 31 days in December 2024.
  

• C.A.R.'s statewide sales-price-to-list-price ratio* was 97.9 percent in December 2025 and 98.7 percent in December 2024.
  
• The statewide median price per square foot** for an existing single-family home was $408, down from $413 in December a year ago.
  
• The 30-year, fixed-mortgage interest rate averaged 6.19 percent in December, down from 6.72 percent in December 2024, according to C.A.R.'s calculations based on Freddie Mac's weekly mortgage survey data.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

Leading the way…® in California real estate for 120 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Sacramento.

# # #

December 2025 County Sales and Price Activity
(and condo sales data not seasonally adjusted)

r = revised
NA = not available

December 2025 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

r = revised
NA = not available

Article belongs to CAR.org

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January 8, 2026

CALIFORNIA ASSOCIATION OF REALTORS^® calls for expanded homeownership opportunities across California

SACRAMENTO (Jan. 8) – The CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) today issued the following statement in response to Gov. Gavin Newsom's final State of the State address:

"The CALIFORNIA ASSOCIATION OF REALTORS^® applauds Gov. Newsom for recognizing that housing costs are a major driver of California's affordability crisis," said 2026 C.A.R. President Tamara Suminski....

Click Here to Read More...

The Rental Refresh: Practical Upgrades That Make an Investment Property Feel "Worth It"

Refreshing an investment property—a home or unit you rent out for income—usually comes down to one thing: making it easier for a prospective tenant to picture a comfortable life there (and harder for them to find a reason to pass). The tricky part is that you're not renovating for your taste. You're renovating for speed (rent faster), stability (fewer calls), and perception (better photos and showings). The best upgrades do all three.

Quick takeaways you can use today

• Fix anything that looks neglected first: plumbing leaks, stains, peeling paint, sticky doors, broken switches.
• Choose one simple style direction (neutral paint, consistent hardware) and repeat it.
• Spend on durability in high-traffic areas; save on "nice-to-haves" that won't survive turnover.
• Add one comfort upgrade that tenants feel every day (lighting, temperature control, storage).

Start with a "deal-breaker sweep"

Before you dream up a backsplash, do a fast walk-through and ask: What would make someone hesitate after a 30-second glance?

Think in categories:

• Cleanliness and smell: Deep clean, remove pet odors, address musty areas at the source.
• Lighting: Dim rooms feel smaller and older. Bright, consistent lighting is an instant mood lift.
• Wear signals: Scuffed trim, torn screens, mismatched fixtures, chipped outlets—small, but loud.
• Function: Doors that don't latch, slow drains, wobbly toilets, loose railings—these kill trust.

A surprisingly large "refresh" is just restoring the unit to a crisp baseline.

Where upgrades tend to pay off

Financing a refresh while staying focused on cash flow

When the upgrade plan is meant to raise rent, reduce vacancy, or protect the property from wear, some investors look into understanding what a DSCR loan is as a way to fund improvements based on the property's rental strength rather than personal income. With this type of loan, lenders commonly look at how the rent supports the monthly housing payment; DSCR is calculated by dividing monthly rental income by the total monthly housing payment (typically mortgage, taxes, and insurance). A ratio of 1.00 or higher generally indicates the rent can cover those costs, which can make it easier to finance strategic upgrades that improve appeal and value. Learn more here: understanding what a DSCR loan is.

Upgrades renters mention (and maintenance appreciates)

Not every improvement needs to be flashy. Some are just…smart.

• Durable flooring in living areas instead of carpet
• Simple, sturdy blinds that match across rooms
• Additional shelving or a basic closet organizer
• USB outlets in a couple of convenient spots
• A consistent set of fixtures (no "five different silvers")

These won't win design awards. They will reduce turnover complaints.

A resource to keep you out of trouble later

If you're tracking repair vs. improvement expenses, depreciation, and what records to keep, the IRS guide for rental owners is genuinely useful. Bookmark IRS Publication 527 (Residential Rental Property) and use it as a reference when organizing receipts and upgrade notes.

FAQ

Which single upgrade makes the biggest difference fast?
Fresh paint plus better lighting is the classic combo. It changes photos, showings, and first impressions without requiring structural work.

How do I avoid over-renovating?
Let the neighborhood set the ceiling. Aim to be among the nicer options nearby—not a luxury outlier that can't earn back the cost.

Should I remodel the kitchen fully?
Only if the existing one is beyond a refresh. Often, replacing hardware, updating a faucet/lighting, and cleaning up worn details gets most of the perceived benefit.

What's a safe "tenant-pleaser" that doesn't break the bank?
Storage. Even small shelves, hooks, and closet organizers can make a place feel more livable.

Conclusion

The best investment-property refresh isn't a single big renovation—it's a sequence of thoughtful fixes that remove friction and add confidence. Start by eliminating anything that looks broken or neglected, then lean into consistent finishes and durable materials. Add one or two comfort upgrades that renters will feel every day. Do that, and your property becomes easier to rent, easier to maintain, and easier to value.

Article belongs to CAR.org