California’s housing competition cooled markedly in the first half of 2025, with the share of home sales receiving multiple offers dropping to 42.6 percent—the lowest level since 2008—according to the California Association of REALTORS® 2025 Annual Housing Market Survey. The average number of offers per transaction fell to 3.7, the smallest in six years, even as mortgage rates eased to their lowest point since October 2024.
Local markets mirrored statewide trends. In Baldwin Park and Rosemead, agents report fewer bidding wars on entry-level homes, giving buyers greater negotiating power. Brokers in El Monte note that well-priced properties now stay on the market longer, and some sellers are reducing asking prices to generate interest.
Above-asking sales dipped for the fourth consecutive year, falling from 34.3 percent of all transactions in 2024 to 27.9 percent in 2025—only slightly above the long-run average of 24 percent. In Arcadia and Temple City, luxury home sales with above-list offers became increasingly rare. REALTORS® say that buyers are recalibrating expectations amid rising inventory, as more homeowners who delayed listing during the pandemic now bring properties to market.
Despite softer competition, Irwindale and South El Monte continue to see pockets of demand where schools and commuter access are strong. Agents advise prospective buyers to secure pre-approval early and monitor local listings closely, as rate volatility and economic uncertainty could reignite bidding activity.
Mortgage rates, which improved through the summer, may spur renewed demand in the coming months. If housing demand rebounds in the fourth quarter, competition could tighten again, particularly in communities with limited available stock. For now, however, the market offers a rare window for buyers to negotiate more favorable terms.
Community homeowners and prospective buyers are encouraged to consult with local REALTORS® to understand how these trends affect their neighborhoods. For more details on statewide figures, visit the California Association of REALTORS® website at https://www.car.org.
The cooling of housing competition offers tangible benefits for local residents. In El Monte and Baldwin Park, first-time buyers and young families are finding it easier to secure mortgages and negotiate price concessions, helping stabilize diverse neighborhoods. Homeowners in Rosemead and Arcadia who once delayed selling now enter the market with greater confidence that they can find replacement housing without facing intense bidding wars.
Reduced frenzy at open houses fosters a more transparent process, allowing buyers to perform thorough inspections and address repair needs upfront. With more predictable sales timelines, local schools and businesses can better anticipate enrollment and consumer demand. Community leaders say that this more balanced market may support long-term neighborhood cohesion and encourage modest home-improvement investments.
