California home sales climb to their highest level since fall 2022, signaling cautious improvement in the statewide housing market as 2025 nears its end, according to a new release from the California Association of Realtors.
Existing single-family California home sales climbed in November, increasing from both the prior month and the same period last year. Sales rose 2.6 percent year over year to an estimated 287,800 units, marking the strongest monthly performance since September 2022. Although growth slowed slightly from October’s pace, the overall trend points to gradual recovery rather than contraction.
Through the first 11 months of 2025, statewide home sales continued to outpace last year’s levels for the same period. Even so, November represented the 38th consecutive month that total sales remained below the 300,000-unit benchmark, a level long associated with a more balanced California housing market.
For San Gabriel Valley communities such as El Monte, Baldwin Park, Rosemead, and Temple City, statewide increases often translate into stability rather than rapid expansion. Local housing activity typically reflects broader state trends, particularly during periods of elevated borrowing costs.
California Home Sales Climb as Pending Activity Slows
While closed sales improved, forward-looking indicators showed signs of cooling. Statewide pending home sales declined 4.6 percent year over year in November, marking the first annual drop in four months. Compared with October, pending sales fell sharply by 18 percent.
The decrease reflects a combination of normal seasonal slowdown and heightened mortgage rate volatility. Economic uncertainty and fluctuating interest rates have caused many buyers to delay decisions, especially those focused on monthly affordability.
In the San Gabriel Valley, pending sales are closely watched because they often signal near-term market conditions. A statewide pullback suggests that early 2026 may begin at a slower pace, even as overall sales performance improves.
Agents across the region report that buyers remain active but selective, prioritizing price, condition, and long-term value. Sellers continue to see interest, though homes that are not priced competitively often remain on the market longer.
Outlook Remains Measured Into Early 2026
As the market moves through its winter slowdown, statewide sales are expected to close out 2025 with a modest annual gain. Early 2026 is projected to start slowly, shaped by mortgage rates, economic confidence, and persistent inventory constraints.
Despite the headline that California home sales climb, challenges remain. Affordability pressures continue to limit demand, and limited housing supply prevents sales from returning to pre-pandemic norms.
For San Gabriel Valley residents, the data points to a market that is improving gradually rather than surging. Buyers may face less competition than in previous cycles, while sellers should prepare for informed, cautious purchasers.
The California Association of Realtors compiles its monthly sales data from multiple listing services across the state. Additional information on the report and methodology is available at https://www.car.org.
