California home prices stabilize as the statewide median remained essentially flat from a year earlier in November, signaling a cooling but steady housing market as 2025 approaches its final weeks, according to a new release from the California Association of Realtors.
The statewide median home price declined month to month to $852,680, a 3.9 percent drop from October. That decrease was steeper than the long-run average decline of 0.3 percent typically observed between October and November. On a year-over-year basis, prices were virtually unchanged, extending a stabilization trend that has taken hold over the past several months.
For San Gabriel Valley communities such as El Monte, Baldwin Park, Rosemead, and Temple City, the fact that California home prices stabilize at the statewide level often points to a period of recalibration rather than correction. Local markets tend to reflect broader patterns during seasonal slowdowns, particularly when buyer competition eases.
Higher borrowing costs and affordability pressures have cooled demand, while limited inventory continues to prevent sharp price declines. Together, those factors have helped anchor prices after several years of rapid movement.
California Home Prices Stabilize Despite Regional Differences
Although California home prices stabilize statewide, regional trends varied across the state. Three of California’s five major regions recorded year-over-year increases in their median home prices.
The Far North led with a 2.7 percent gain from November 2024. Southern California followed with a 1.2 percent annual increase, while the Central Coast posted a modest 0.2 percent uptick. Those gains suggest that certain regions remain supported by supply constraints and steady demand.
In contrast, the San Francisco Bay Area recorded the largest year-over-year decline at 3.2 percent. The Central Valley also saw prices fall 1.0 percent compared with a year earlier. The differences reflect varying affordability challenges, employment conditions, and buyer behavior across regions.
Southern California’s modest growth places it in a middle position, showing resilience without the sharp appreciation seen in earlier years.
What Stabilizing Prices Mean Locally
For San Gabriel Valley buyers, a market where California home prices stabilize may provide more breathing room. Slower price movement can allow for longer decision-making timelines and increased negotiating leverage.
Sellers, meanwhile, may need to be more strategic. Homes priced aggressively above market conditions may see reduced activity, while well priced properties continue to attract attention.
As the market moves through its winter slowdown, prices are expected to remain relatively steady through the end of the year. Early 2026 conditions will depend largely on mortgage rates, economic confidence, and whether housing supply changes meaningfully.
The California Association of Realtors compiles its monthly price data using multiple listing services statewide. More information on housing trends and methodology is available at https://www.car.org.
For local residents, the November data underscores a housing market shifting toward balance, where stability is replacing rapid price growth.
