Home prices dip in 88% of California

"Here's some modest relief for California house hunters: values were falling in 88% of the state as 2025 ended. To get a local sense of where prices are going, my trusty spreadsheet reviewed home value data from Zillow for 125 of the nation's largest metropolitan areas, including 16 from California. In the 12 months ended in December, values were down in 14 of the 16 California metros. But savings were meek, with the largest dip found in Stockton, off only 4% last year vs up 2% in 2024 and 36% over the previous four years."

"But seeing declines is noteworthy because, as recently as March 2025, no California metro had falling prices. That was the end of a 14-month streak without any year-over-year decreases. The late 2025 slips are a reminder that home prices don't always rise. Zillow values in the 16 California metros combined have dropped year over year in 26% of months since 2000, mostly surrounding the Great Recession. Compare that to the nation."

"Pricing also looked weak using Zillow's statewide index, which fell 2% last year, vs. rising 3% in 2024 and 38% during the previous four years. Nationally, prices were essentially flat last year vs. gains of 3% in 2024 and 43% in 2020-2023. California's declines can be more properties for sale, nudging sellers to compete on price, and a wobbly economy scaring off some potential buyers. The year-end soft pricing on top of mortgage rates at roughly three-year lows offers a dash of hope for budget-strapped house hunters as 2026 begins."

Home values fell in 88% of California metropolitan areas at the end of 2025, with 14 of 16 metros down year-over-year in December. Stockton recorded the largest annual decline at about 4% after strong prior gains. Zillow's statewide index for California fell 2% in 2025 following a 3% rise in 2024 and a 38% gain across the previous four years. National prices were essentially flat in 2025 after prior gains. Historic data show California metros have fallen in 26% of months since 2000, often around the Great Recession. Higher inventory, competitive seller pricing, and a shaky economy weighed on prices while lower mortgage rates offer some buyer relief.

Read at www.ocregister.com