Home sales were better than expected in October, overcoming the challenges of higher mortgage rates, a government shutdown, a shaky economy, and another month of fewer properties hitting the market.
A seasonally adjusted 282,600 homes sold in October, a 1.9% increase compared to September and up 4.1% from a year ago, according to the California Association of Realtors. Home sales inched higher for the first 10 months of the year, compared to the same period in 2024.
But the short-lived Halloween candy high fades fast, since sales remained below the 300,000-home threshold for the 37th-straight month (uh, more than three years).
Six of the seven regions reported sales gains in October, compared to a year ago. The Far North, Chico to Crescent City, had an impressive 18% increase from a year ago, easily the largest in the state. Southern California’s markets – the Inland Empire, Los Angeles and the rest of Southern California – enjoyed around 6% gains. Only the Central Coast, from about Santa Barbara to Santa Cruz, endured a decline at a modest 1.6% from a year ago.
“Housing demand in California has been steadily improving, with home sales rising for the third month in a row,” said CAR president Tamara Suminski, a Southern California broker. “Home prices are growing at a manageable pace, and we’re seeing a healthy balance between buyers and sellers. As we head into 2026, these trends point to a promising moment for anyone considering a move into the California real estate market.”
MORE SELLERS THAN BUYERS, BUT PRICES REMAIN NEAR A RECORD
That “promising moment” has a problem – declining inventory, with the sixth straight month of fewer homes available to buy. So many buyers, already dealing with affordability concerns, are finding stagnant near-record home prices.
The state’s median-home price – meaning half the homes sold for more, the other half for less – was $886,960 in October, a 0.4% increase from September and down 0.2% from a year ago.
Four of the seven regions reported price gains, including 7.9% along the Central Coast, while others struggled, including a 3.8% drop in the Far North.
But even with fewer homes available and still near-record prices, buyers have the upper hand in California, according to a new Redfin report. Buyers outnumber sellers across the state, including 51% more in Riverside, except in the Bay Area, where Ai dollars have propped up prices and sales during the past year.
For most wanna-be buyers, it’s more about careful planning, timing and watching.
“Mortgage rates, which briefly approached their 12-month low in October, have resumed an upward trajectory as the Federal Reserve took a more cautious approach during the government shutdown,” said Jordan Levine, senior vice president and chief economist for CAR. “With the market easing into its seasonal slowdown, housing demand will stay soft, and California is likely to close out 2025 with only a modest uptick in home sales over last year.”
Home prices and sales in October compared to a year ago
| Region | Median home price | % gain or loss vs. a year ago | Home sales vs. a year ago |
|---|---|---|---|
| California | $886,960 | -0.2% | +4.1% |
| Bay Area | $1.3 million | -1.1% | +2.5% |
| Central Coast | $1.07 million | +7.9% | -1.5% |
| Central Valley | $499,000 | -0.2% | +4.0% |
| Far North | $375,000 | -3.8% | +18.0% |
| Inland Empire | $599,250 | +0.1% | +6.4% |
| Los Angeles | $845,180 | +1.1% | +5.6% |
| Southern California | $874,240 | +1.1% | +5.6% |
Source: California Association of Realtors
