California experienced a drop in home prices and sales despite a modest dip in mortgage rates. The average 30-year mortgage rate fell to 6.8% in May 2025, down from 7.1% in May 2024. However, the estimated house payment for a $900,000 median-priced home is still significant. May saw a 1% decline in the median price, marking the first annual drop since June 2023. Sales dropped 4% year-over-year, the largest decrease in 17 months, while homeowners sold more properties, resulting in an increased supply.
The 30-year mortgage rate averaged 6.8% that month, down from 7.1% in May 2024. A California house hunter's estimated house payment for a $900,000 median-priced home at the 30-year rate has fallen 3% in a year to $4,700.
The median was off 1% since May 2024, the first 12-month drop in prices since June 2023. Still, that median is just $10,000 off its all-time high.
May's statewide sales were down 4% year-over-year, marking the biggest drop in 17 months. The number of days on the market has risen by five to 21 since May 2024.
Homeowners rushed to sell, as May's 3.8 months of supply represents a 46% increase from a year ago. May's job growth was a modest 0.5% for the year.
Collection
[
|
...
]