California home sales edged slightly higher in August, signaling possible improvement for the housing market after months of slowing activity. Sales of existing single-family homes across the state climbed 0.9 percent from July to reach a seasonally adjusted annualized rate of 264,240 units, according to the California Association of Realtors. Despite the modest month-over-month increase, sales were virtually flat compared with August 2024, declining 0.2 percent.
Pending sales show signs of growth
Pending sales, which indicate future closings, provided a brighter outlook. August pending transactions in California rose 0.2 percent compared with the same month last year, marking the first year-over-year increase in nine months. Pending sales also jumped 8.3 percent from July, boosted by mortgage rates that fell to a 12-month low at the end of August.
Housing experts noted that lower borrowing costs gave some buyers an opportunity to re-enter the market. Although mortgage rates have since rebounded slightly, they remain well below levels recorded earlier this summer, suggesting sales activity could strengthen in the coming months.
Year-to-date totals still lag behind
Even with August’s gains, sales for the first eight months of 2025 remain below last year’s pace. It marks the fifth consecutive month of year-over-year declines, reflecting the challenges of affordability and inventory that continue to shape the housing market.
Economists suggest that any sustained improvement will depend on interest rates stabilizing and the broader economy avoiding a significant slowdown. If those conditions hold, the market could see gradual recovery heading into 2026.
Regional outlook for buyers and sellers
For communities in the San Gabriel Valley and across California, the near-term forecast points to a market in transition. Buyers may benefit from interest rates that are lower than mid-summer levels, while sellers may see more competition as pending sales move toward completion.
The California Association of Realtors continues to provide monthly updates on market conditions, including regional trends and affordability measures. More details are available at the association’s website: California Association of Realtors.
