The California real estate market continues to show a mix of movement and restraint, with new data from the California Association of REALTORS® (C.A.R.) highlighting both growth in pending sales and a slowdown in new listings. For the week ending August 16, 2025, the California real estate market displayed an active pool of buyers but fewer sellers willing to put homes on the market.
Sales Activity and Buyer Demand
Daily averages reported by C.A.R. showed 523 closed sales, 555 pending sales, and 693 new listings across the state. Compared to the prior week, closed sales fell slightly by 0.9 percent, while pending sales rose by 9.4 percent. The increase in pending sales suggests buyers remain eager to secure homes despite affordability challenges and fluctuating mortgage rates.
Closed sales, which represent completed transactions, dipped modestly. This decline may reflect the tight inventory conditions that continue to limit buyer choices. By contrast, the higher number of pending sales shows that activity in escrow remains healthy, a sign that demand is holding strong even as the supply side struggles to keep up.
REALTOR® Participation and Listings
Realtor participation levels also showed mixed results. About 23.7 percent of REALTORS® reported closing a sale during the week, a slight decrease from the previous period. On the other hand, 23.2 percent of REALTORS® entered escrow, an encouraging signal that transactions are continuing to move forward.
One of the most notable shifts came in new listings. Just 27.3 percent of REALTORS® reported listing a property, representing a 6.6 percent decline. New listings are an important measure of supply, and the decrease indicates that many homeowners remain hesitant to sell. Some may be holding onto lower mortgage rates locked in during earlier years, while others are waiting to see how interest rates and home prices trend this fall.
Market Outlook and REALTOR® Sentiment
Looking ahead, C.A.R.’s weekly survey asked REALTORS® for their expectations in the near term. Roughly 14.4 percent said they expect sales to rise in the coming week, though this number was down 9.1 percent from earlier responses. Another 7.5 percent forecast an increase in prices, and 44.8 percent believed that more listings would appear in the market.
This outlook reflects cautious optimism. While sales and pricing are expected to see incremental gains, much depends on whether more homes become available for buyers. Without additional supply, affordability pressures are likely to persist, particularly in regions like Los Angeles County and the Inland Empire, where demand has remained high throughout 2025.
Implications for Local Communities
For communities in the San Gabriel Valley, the current California real estate market dynamics carry both opportunities and challenges. Buyers benefit from active escrow activity that demonstrates sellers are still entering the market, though at a slower pace. Sellers, meanwhile, may find the limited inventory working in their favor, as fewer listings can mean stronger competition for available homes.
Local REALTORS® continue to play a central role in bridging this gap. Their ability to guide clients through tight market conditions, negotiate deals, and forecast trends based on statewide data remains critical. As mortgage rates and broader economic conditions evolve, their insight helps communities like El Monte, Baldwin Park, and Temple City understand what to expect in the months ahead.
The balance between buyer demand and seller hesitation will likely remain the defining feature of the market this fall. If more listings emerge, competition could ease, offering buyers greater choice. If inventory continues to lag, rising pending sales may only increase the strain on affordability.
For more statewide housing data and analysis, visit the California Association of REALTORS®.
