Home sales in California, including Southern California, saw a slowdown in both prices and volume in May 2025. Experts attribute this to buyers hesitating to purchase due to financial burdens from high home prices amid economic uncertainty.

According to the California Association of Realtors (CAR) “May Home Sales and Price Trends Monthly Report” released on June 24, 2025, the seasonally adjusted annualized sales of single-family homes in California totaled 254,190 in May, down 5.1% from 267,710 in April and 4.0% from 264,850 in May 2024. This marked the weakest sales volume of the year, with the largest year-over-year decline since 2023 and the first month-over-month drop in 17 months.

Of California’s 53 counties, 36 saw year-over-year sales declines in May, with two-thirds experiencing drops of 10% or more. Only 15 counties reported increased sales compared to the previous year. Monthly sales below 300,000 units have persisted for 32 consecutive months since September 2022, including May 2025.

The median price of single-family homes sold in California in May was $900,170, down 1.1% from $910,160 in April and 0.9% from $908,000 in May 2024. This halted a 22-month streak of year-over-year price increases. However, the median price has exceeded $800,000 for 25 of the past 26 months, indicating persistently high prices (see chart).
The median price for condominiums in May was $675,000, up 0.7% from $670,000 in April but down 2.2% from $690,000 in May 2024. Condo sales volume fell 3.2% from April and 11.7% from May 2024.

CAR Chief Economist Jordan Levine noted, “High mortgage payments, with rates still near 7%, have put financial pressure on buyers, leading to sluggish sales. However, an increase in inventory to 3.8 months of supply in May, compared to 3.5 months in April and 2.6% in May 2024, is a positive factor.”

The average 30-year fixed mortgage rate in May was 6.82%, down 0.24 percentage points from 7.06% in May 2024 but still close to 7%.
In Southern California, both home prices and sales volume growth slowed in May. The median home price in the region was $888,000, up 0.1% from $887,000 in April and 0.9% from $880,000 in May 2024. Sales volume dropped 1.0% from April and 7.6% from May 2024.

By county, Los Angeles County’s median home price in May was $835,480, down 1.7% from $850,270 in April but up 2.9% from $811,610 in May 2024. LA County sales volume rose 5.7% from April but fell 7.9% from May 2024.

Orange County had the highest median price in Southern California at $1,419,500 in May, up 0.1% from $1,417,450 in April but down 0.2% from $1,422,500 in May 2024. OC sales volume dropped 2.1% from April and a significant 16.0% from May 2024.

Ventura County’s median price rose 6.5% year-over-year, San Bernardino County’s increased 5.6%, and San Diego County’s grew 2.4%, while Riverside County’s fell 1.0%. Year-over-year sales volume declined across the board: Riverside County by 8.2%, San Diego County by 4.6%, San Bernardino County by 3.3%, and Ventura County by 1.2%.
CAR President Heather Ozur stated, “California’s housing market is structurally primed for price increases due to high prices and tight inventory. A further decline in mortgage rates is needed to revitalize the market.”

By Hwandong Cho