California’s housing market showed slight improvement in September as home sales rebounded from both the previous month and last year’s levels, according to the latest monthly sales and price report from the California Association of REALTORS® (C.A.R.).
Sales of existing single-family homes rose 6.6 percent from a revised annualized pace of 260,340 units recorded in September 2024. The increase marks the first year-over-year gain in six months and signals that the state’s market is stabilizing after a period of slower activity.
Gradual Recovery After Months of Decline
The report noted that September’s uptick pushed year-to-date sales slightly above last year’s total for the same period, returning the overall sales volume to positive territory. Despite the improvement, September represented the 36th consecutive month in which statewide sales remained below 300,000 units, underscoring the gradual nature of the recovery.
Pending sales—a forward-looking indicator of future activity—also showed encouraging movement, edging up 0.1 percent from September 2024. The slight rise suggests another small year-over-year gain may be possible in October as open-escrow transactions continue to hold steady across the state.
Mortgage Rates Remain Supportive
C.A.R. analysts attributed part of the increase to continued buyer motivation supported by relatively low mortgage rates. While rates ticked up from their 12-month low in mid-September, they remain close to the lowest levels seen in nearly three years. That stability has helped sustain buyer confidence despite affordability challenges in many regions.
Although activity improved, the report cautioned that overall market momentum remains limited. The statewide pace is expected to stay largely flat compared with 2024 levels through the remainder of the year.
Steady Conditions Across Local Markets
In the San Gabriel Valley and other regional markets, real estate professionals have reported similar patterns—slightly higher transaction volume, steady pricing, and cautious optimism among buyers. Lower borrowing costs and a modest increase in available inventory have helped balance conditions for both sides of the market.
Economists suggest that continued moderation in interest rates and gradual improvement in consumer sentiment could support a more sustained recovery into early 2026. For now, September’s rebound provides a measure of relief for California’s housing sector as it moves into the final quarter of the year.
