High-end home prices are climbing but sales are declining, falling to a record-low for the month of August in California – and nationwide.
Luxury home prices, considered the top 5% of the market, increased 6% in August compared to a year ago in California, but sales tumbled more than 18%, according to Redfin.
Housing experts blame concerns about the economy and while stocks are soaring there is a wait-and-see approach from many deep-pocketed households. Mortgage rates, which have declined in recent weeks, have less of an impact on luxury home sales.
A MIXED MESSAGE IN CALIFORNIA
In California, luxury home prices are up 6% from a year ago, including an impressive 10%-plus in Orange County, Los Angeles and San Jose.
All eight regions reported an increase in the median-home price, with Oakland’s 1.7% at the low end (see table, below).
But high-end home sales are all over the place. Statewide, sales are down 18.3% from a year ago, but a large majority of the downturn is attributed to three markets –San Jose (down 24.4%), San Diego (off 15.8%) and Oakland (lower by 14.7%).
‘SUPER SLOW IN THE LUXURY MARKET’
Otherwise, high-end home sales are rock-solid, including a 14% increase in San Francisco, which has enjoyed a healthy bounce back in recent quarters. The Sacramento region had the smallest sales increase at 2.2%.
Nationwide, luxury home prices in August increased 3.9% to $1.25 million – in comparison, the median-home price is about $900,000 in California – but sales dropped 0.7% from a year ago, the slowest for the month since 2013.
“Sales have slowed across all price tiers, and luxury homes are no exception,” said Redfin senior economist Sheharyar Bokhari. “Last year was super slow in the luxury market and this year is even slower. High-end buyers often keep the market moving because they’re less tied to mortgage rates, often buy in cash, and can prioritize lifestyle over affordability. But right now, many of those buyers are waiting on the sidelines, holding out for more certainty around the economy and the housing market.”
Feature photo: Luxury home in Santa Monica. SHUTTERSTOCK
Luxury home prices Increase, mixed sales in August
| Metro | Sales price | % compared to a year ago | Home sales compared to a year ago |
|---|---|---|---|
| Anaheim-Irvine | $5.14 million | +11.4% | +8.2% |
| Los Angeles | $4.46 million | +10.0% | +5.2% |
| Oakland | $2.91 million | +1.7% | -14.7% |
| Riverside | $1.61 million | +2.8% | +7.1% |
| Sacramento | $1.71 million | +3.4% | +2.2% |
| San Diego | $3.7 million | +7.1% | -15.8% |
| San Francisco | $6.33 million | +2.0% | +13.9% |
| San Jose | $5.43 million | +9.9% | -24.4% |
| California (avg.) | $3.91 million | +6.0% | -18.3% |
Source: Redfin
Foreclosures increased in the third quarter, the latest evidence of a struggling housing market. ADOBE STOCK
Foreclosure filings soar in Q3
More financially strapped homeowners are facing foreclosure, as prices dip and sales stall.
About 11,200 homeowners in California were dealing with a foreclosure during the third quarter, a 4.7% increase from the second quarter and up 7.3% from a year ago, according to ATTOM Data. The state had 7,862 new foreclosure filings (see table, below) during the July-September period, the third-most in the U.S.
Now, foreclosure filings in the closely watched report range from the first steps in the process – an initial notice – to lenders repossessing the property. So, homeowners could catch-up on payments and pay the late fees and penalties or even sell the property, thus avoiding the emotional and long-term financial pain of foreclosure.
‘AN EARLY INDICATOR OF EMERGING BORROWER STRAIN’
But the foreclosure figures are grabbing headlines and prompting some worries.
All eight regions of the state – from the Bay Area to San Diego – had a boost in foreclosure filings during the third quarter, including a 23% increase in the Sacramento region, easily the highest in the state.
As always, the most affordable housing markets, with blue-collar jobs and smaller paychecks, are dealing with the largest increases in the state. Bakersfield’s foreclosure activity increased 15%, followed by Riverside-San Bernardino at 11.2% and 9.7% in Fresno.
“In 2025, we’ve seen a consistent pattern of foreclosure activity trending higher, with both starts and completions posting year-over-year increases for consecutive quarters,” said ATTOM CEO Rob Barber. “While these figures remain within a historically reasonable range, the persistence of this trend could be an early indicator of emerging borrower strain in some areas.”
FAR FROM THE GREAT RECESSION
But before buyers dream of a flood of foreclosed homes entering the market with significantly slashed prices, it’s important to put the current pace in perspective.
There are fewer homes entering foreclosure during the third quarter as just one week in 2009, when a record 632,570 homes started the process in California. More than 1.1 million homes in the state entered foreclosure between 2007 and 2009, easily the most in the nation.
Nationwide, more than 101,500 homes faced foreclosure during the third quarter, a 17% increase compared to same three-month period in 2024. Sacramento was the only region in the state with a foreclosure rate higher than the national percentage.
Foreclosures increase statewide and in all seven eight regions
| City | Foreclosures Q3 ’25 | % from a year ago |
|---|---|---|
| Bakersfield | 451 | +15.1% |
| Fresno | 316 | +9.7% |
| Los Angeles | 3,242 | +3.8% |
| Riverside | 2,031 | +11.2% |
| Sacramento | 805 | +22.9% |
| San Diego | 629 | +5.9% |
| San Francisco | 1,138 | +1.8% |
| San Jose | 226 | +0.44% |
| California | 11,207 | +7.3% |
Source: ATTOM Data
Apartments must have a refrigerator and stove under a new law starting in 2026. ADOBE STOCK
No fridge, no stove? No problem
Gov. Gavin Newsom signed Assembly Bill 628 on Oct. 6, requiring landlords to provide a good-working refrigerator and stove starting Jan. 1.
Assemblymember Tina McKinnor, Democrat-Hawthorne, authored the bill.
Apartments already must include adequate hot and cold running water, heat and weather proofing. So, McKinnor felt an operating refrigerator and stove should also be part of the requirement.
She said the new law will allow residents to save more money when moving into a new apartment. In 2022, the Los Angeles Times found that California had the most apartments without a refrigerator in the U.S.
