California Home Sales Hit Highest Level Since September 2022

The California housing market is seeing an uptick as home sales in the Golden State have reached the highest level since September 2022, according to the California Association of Realtors® (C.A.R.).

Existing, single-family home sales totaled 287,940 in November 2025 on a seasonally adjusted annualized rate, up 1.9% from 282,590 in October and up 2.6% from 280,530 in November 2024.

The annualized figure reflects the number of homes that would be sold in 2025 if November's sales pace continued throughout the year, with adjustments made for typical seasonal patterns.

Cumulatively, total home sales through the first 11 months of 2025 also remained above last year's level, says the new C.A.R. report.

"California home sales reaching their highest level in more than three years is an encouraging sign that the housing market is continuing its recovery," said 2026 C.A.R. President Tamara Suminski, a Southern California broker and real estate agent. "While the sales growth remains gradual, the upward trend suggests that the market is slowly gaining momentum—good news for buyers, sellers, and real estate professionals alike."

The increase is due to a surge in demand in certain areas. While only 25 of the 53 counties tracked by C.A.R. posted year-over-year sales gains in November, many had double-digit increases.

The gains were led by Trinity County with a 60% surge, followed by Imperial (46.7%) and Mendocino (43.3%).

However, the increase in home sales didn't always track with a year-over-year median home sale price increase. Trinity, for instance, decreased -10.3%.

Doren Morgan of California Outdoor Properties, who reps the area's priciest listing with a $1.75 million 655-acre, 6-bedroom ranch, says that "90% of [the property] is burned" from wildfires.

"The challenge is fire insurance, because this is primarily forested area—you either can't get insurance, or if you can, it's extremely expensive," he tells Realtor.com®.

But he notes that retirees continue to migrate to the area for its outdoor creation in the Trinity Alps, including hunting, fishing, and hiking.

"People are seeing that Tahoe is so ridiculously populated now and this is an alternative to be in the mountains," he says.

Overall, California home prices were softening. The statewide median price per square foot for an existing single-family home was $423, down from $429 in November a year ago, says the report.

And November single-family median home prices dipped to $852,680 from $886,960 in October. Condo/townhome prices, on the other hand, saw a slight $10,000 monthly increase from $650,000 in October, but the prices are not seasonally adjusted.

These medians are far above the national median list price of $415,000, down 0.4% from last year and 2.2% from last month, according to Realtor.com data.

What's behind the numbers

For one, mortgage interest rates are finally inching downward, encouraging people to step into a market they may have stepped aside from for the last few years.

The 30-year, fixed-mortgage interest rate averaged 6.24% in November, down from 6.81% in November 2024, according to C.A.R.’s calculations based on Freddie Mac data.

"Mortgage rates are expected to continue declining in 2026, but the decrease is unlikely to be dramatic," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "With the Federal Reserve signaling a more cautious approach to rate cuts and recent signs of economic slowing, California home sales and prices are projected to experience mild to moderate growth over the next 12 months."

Oscar Wei, deputy chief economist at C.A.R., tells Realtor.com, "the market is very sensitive to interest rates. It's really hard to build momentum, especially since we're not going into homebuying season. People are still concerned about what's going to happen with inflation."

Where are the increases?

The state's Far North stands out as the area with the most growth, showing a modest 2% sales gain from a year earlier. By contrast, the San Francisco Bay Area (-3.5%), Central Valley (-3.1%), Southern California (-3.1%), and Central Coast (-2.4%) all posted sales declines.

Additionally, the Far North led in median price gains, with a moderate increase of 2.7% from last year, while Southern California showed a slight 1.2% increase and the Central Coast region barely moved the needle with a 0.2% uptick.

The pricey San Francisco Bay Area saw the largest annual price decline (-3.2%), followed by the Central Valley with -1%.

At the county level, Del Norte led the price gains with a 24.4% increase, followed by Tehama with 22.3% and Siskiyou with 16.9%. 

Robin Hartwick of Reel Properties, who reps the priciest listing in Del Norte, a $2.5 million 6,287-square-foot wooden lodge with 300 feet of Smith River frontage, isn't surprised to hear that the area, seven hours north of San Francisco and bordering Oregon, has the highest price surge in the state.

She notes the area's appeal: redwood rainforests, clean fish-packed rivers, moderate temperatures with a two-hour drive to snowcapped mountains, and dramatic Pacific shoreline. Even its frequent rainfalls are welcome in a state increasingly at risk for wildfires.

"I feel like, after the fires, a lot of people are migrating north," Hartwick tells Realtor.com. "And it's pretty hard to beat living in paradise."