The California home price report for September shows a slight annual increase in the statewide median home price, even as the month-over-month figure slipped. According to the California Association of REALTORS® (C.A.R.), the median price of existing single-family homes reached $883,640 in September. That reflects a 1.8 percent gain from September 2024 but a 1.7 percent decline from August’s $899,130.
Steady Annual Gain, Typical Seasonal Dip
Despite the monthly decrease, analysts note the drop follows a common seasonal trend, aligning with the long-term average decline of about 1.8 percent between August and September. The annual increase marks the second consecutive year-over-year gain in California’s median home price, suggesting continued resilience despite affordability constraints and slower buyer activity.
Price growth appears strongest among higher-end properties, with the upper market segments showing steady demand from buyers less affected by interest-rate shifts. More affordable markets remain mixed, where even small rate changes can influence purchasing power and overall price movement.
Regional Variation Reflects Diverse Market Conditions
Across California’s 53 counties, 27 posted year-over-year gains in median home prices, while 24 counties saw declines. The San Francisco Bay Area led regional improvements with a 2.7 percent annual rise, while Southern California reported relatively stable pricing overall. In Los Angeles County, the median home price hovered near $830,000, up slightly from last year.
Local Perspective and Buyer Outlook
In the San Gabriel Valley, agents report consistent listing activity and renewed interest among buyers who paused earlier in the year. With mortgage rates holding near the low six-percent range, some sidelined buyers are reconsidering purchases heading into the winter. At the same time, limited housing inventory continues to maintain pricing strength in most local markets.
Economists with C.A.R. expect the state’s median price to remain stable through the end of 2025. While sales volumes have yet to reach pre-pandemic levels, lower financing costs and moderating inflation could support a gradual increase in homebuyer confidence.
The California home price report indicates that after two years of volatility, the market is adjusting to a slower but steadier pace—one driven by local dynamics rather than rapid statewide swings.
