California housing inventory is on the rise, giving buyers across the state more choices and prompting sellers to adjust their pricing expectations. For the week ending May 24, 2025, new listings averaged 791 per day, according to the California Association of REALTORS®. This increase reflects a shift toward a more balanced market, where demand remains steady but no longer outpaces supply.

California Housing Inventory Sees Weekly Growth

This uptick in new listings marks a notable shift in California real estate trends. Pending sales averaged 655 per day, and closed sales averaged 563, both strong indicators of continued buyer activity. Compared to the previous week, 24.6% of REALTORS® surveyed reported closing a sale, representing a 12.1% increase. Meanwhile, listing activity jumped 10%, with 33.8% of agents reporting a newly listed property.

The only slight decline came in escrow activity, which dipped 0.4%, suggesting buyers are still active but cautious. Even so, 13.8% of agents reported a client entering escrow.

Agents Expect More Listings

Looking ahead, nearly half of REALTORS® surveyed (46.9%) believe listings will increase this week. That figure is up 3.7% from the prior week’s expectations. About 23.4% anticipate more sales, although that’s a 4.1% decline in confidence. Optimism around price growth has declined more sharply—just 9.4% expect prices to rise, a 9.4% drop from previous expectations.

The increase in inventory and leveling of sales expectations point to a more balanced market. As more homes come to market, buyers could face less competition, while sellers may need to be more realistic about pricing.

Buyer Opportunities Expand With More California Housing Inventory

This pattern of growth in listings alongside steady transactions suggests that California real estate trends are entering a period of stabilization. The rapid pace of price increases seen earlier this year is slowing, with broader economic factors such as interest rates and inflation contributing to a more measured environment.

For buyers, the rise in inventory offers new opportunities to explore options without the pressure of bidding wars. For sellers, the market still offers a solid audience—but pricing strategy will be key to a successful sale.

San Gabriel Valley Implications

In communities like El Monte, South El Monte, Rosemead, Baldwin Park, and Irwindale, these state-level trends mirror local conditions. Real estate professionals throughout the San Gabriel Valley should prepare for a more competitive listing environment, with increased inventory requiring sharper marketing and more accurate pricing.

Local buyers may benefit most, as more homes come to market and pricing becomes more accessible. Sellers in the area should be aware of buyer sensitivity and be prepared for longer listing times unless homes are priced to reflect current conditions.

Closing Outlook

As spring transitions into summer, California real estate trends continue to evolve. With inventory climbing and price expectations adjusting, both buyers and sellers have a clearer view of the road ahead. For REALTORS® and clients alike, the current market conditions suggest preparation, strategy, and flexibility will be key in navigating this new phase.

The full impact of this shift will become clearer in the weeks ahead, but the indicators suggest a more balanced and accessible housing landscape is taking shape across California.