Friday, July 18, 2025

California Home Sales Rebound in June; Altadena and Pacific Palisades Markets Still Reel From Wildfires

Statewide recovery contrasts with severe sales and price drops in fire-affected neighborhoods

California’s housing market showed signs of life in June, reversing three straight months of sales declines, according to the California Association of Realtors (C.A.R.). Closed escrow sales of existing, single-family homes reached a seasonally adjusted annualized rate of 264,260 units, up 4.0 percent from May but down 0.3 percent from June 2024.

June’s statewide median home price fell slightly to $899,560, a 0.1 percent drop from both the prior month and year. C.A.R. noted the decline did not match the historical average June gain of 0.8 percent, suggesting that “non-seasonal factors such as market uncertainty and elevated mortgage rates had a negative lingering effect on housing demand and home prices.”

“With more properties on the market and price growth flattening, conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market and take advantage of increased negotiating power,” said C.A.R. President Heather Ozur, a Palm Springs REALTOR®.

Despite June’s rebound, statewide pending sales slipped for the seventh consecutive month year-over-year, posting the largest annual drop since January. C.A.R. cautioned that with mortgage rates averaging 6.82 percent in June — down slightly from 6.92 percent a year earlier — housing demand will likely remain soft in July.

“While sales could remain soft at the start of the third quarter, recent improvements in housing sentiment suggest that the market could see a bounce-back in the second half of the year,” C.A.R. stated.

Meanwhile, six months after Southern California’s January wildfires, the housing markets in Altadena and Pacific Palisades continue to endure the steepest contractions in the state. Year-to-date home sales in Altadena plunged 54.8 percent, while Pacific Palisades suffered an 83.8 percent collapse, reflecting both disaster-related disruption and broader buyer uncertainty.

Median prices in the fire-affected areas also dropped significantly. Altadena’s fell 39.1 percent from $1.43 million to $867,500, while Pacific Palisades declined 23.7 percent from $3.31 million to $2.53 million. Both communities saw owners selling lots rather than rebuilding — Altadena listed 348 properties or land lots in the first half of the year, up from just one in the same period last year; Pacific Palisades listed 312, also up from just one a year earlier. Lot sales also surged: Altadena reported 172 compared to six last year, and Pacific Palisades recorded 94 versus one.

“Inventory levels continue to normalize, with active listings posting year-over-year gains and the time on market has lengthened compared to the prior year, indicating a deceleration in the pace of sales activity,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “Additionally, the proportion of homes closing above asking price has declined, reflecting a reduction in the intensity of bidding competition. As a result, sellers are demonstrating greater willingness to negotiate on pricing, concessions, and other terms, which creates more advantageous conditions for those considering a home purchase.”

Statewide, total active listings rose more than 40 percent year-over-year — marking the 17th consecutive month of annual supply growth and reaching a 68-month high. However, new active listings declined 5.0 percent compared to June 2024, the first drop in six months. California’s Unsold Inventory Index held steady at 3.8 months, up from 3.0 months a year earlier, while the median time to sell a home increased to 24 days, from 18 days last June.

The statewide sales-to-list-price ratio was 99.3 percent, a slight dip from the 100 percent ratio in June 2024. The median price per square foot for an existing single-family home was $437, down from $440 last year.

At the regional level, the Far North led year-over-year sales growth at 13.7 percent, followed by the Central Coast at 11.4 percent. Southern California (1.9 percent) and the San Francisco Bay Area (1.0 percent) posted modest gains, while the Central Valley was the only major region with a decline, down 0.8 percent.

Among counties, Kings County experienced the highest surge in annual home sales — up 87.3 percent — while Merced County posted the steepest decline at 28.1 percent. These data points underscore localized volatility across California’s real estate landscape.

C.A.R., headquartered in Sacramento, represents more than 200,000 REALTORS® statewide dedicated to advancing professionalism in real estate. Full data, analysis and infographics are available at www.car.org.