Sales rebound thanks to lower mortgage rates at the start of the month. But uncertainty about the Middle East remains
Higher-priced homes and lower mortgage rates gave a much-needed boost to a sluggish housing market in April, a “welcome sign” for the all-important spring home-buying season.
Sales reached a seasonally adjusted 275,580 homes during the month, a 3.9% increase from March and up 4.1% from a year ago, according to the California Association of Realtors. If the annual figure is confusing, just think about 23,000 homes sold in April.
Better but far from great. Home sales have been below the 300,000 level for 43 consecutive months – and housing experts say the so-called buyers’ market should remain at least through the end of the year.
The Bay Area and the Far North, from about Chico to Crescent City, had the biggest gains at 6% and 24%, respectively. The Bay Ara, specifically San Francisco, has enjoyed head-turning sales and price increases for the past few months.
The Central Coast and the Inland Empire endured slight declines in sales from a year ago.
“April’s year-over-year sales increase in homes sales is a welcome sign that buyer demand remains resilient as we move deeper into the homebuying season,” said CAR president Tamara Suminski, a Southern California broker. “While elevated mortgage rates and ongoing uncertainty in the Middle East continue to weigh on the market, California buyers and sellers are still finding opportunities, and that speaks to the underlying strength of housing demand.”
Competition remains in some markets with fewer homes listed
Well, sort of.
More of the demand is coming from higher-income buyers, who are less affected by higher mortgage rates and, quite often, even rising prices. Homes priced at $2 million increased 8.4% from a year ago.
With more sales at the upper-end of the income level – and the market – home prices reached a record $914,810 in April, a 2.9% increase from March and up a more modest 0.4% from a year ago.
April was the third consecutive year-over-year price gain, and the first time the media price has surpassed $900,000 since May 2025. The Central Coast, from Santa Barbara to Santa Cruz, had the biggest annual price increase at 3.2%
“The increase in the median price was driven in large part by the composition of sales, with a greater share of activity occurring in higher-priced segments of the market,” said CAR chief economist Jordan Levine. “Nevertheless, housing affordability remains a significant challenge in California, particularly as the statewide median home price reached a new record high amid tight supply and continued competition in many markets.”
Home prices and sales in April compared to a year ago
| Region | Median home price | % gain or loss vs. a year ago | Home sales vs. a year ago |
|---|---|---|---|
| California | $914,810 | +5.0% | +5.9% |
| Bay Area | $1.4 million | +10.6% | +6.2% |
| Central Coast | $1.125 million | +3.5% | +5.2% |
| Central Valley | $500,000 | +6.8% | +12.5% |
| Far North | $388,000 | -2.0% | +6.8% |
| Inland Empire | $600,000 | +3.6% | +5.3% |
| Los Angeles | $860,000 | +7.1% | +2.8% |
| Southern California | $900,000 | +7.0% | +2.2% |
Source: California Association of Realtors
