"California had 954,423 sales in 2023-25, down from 1.25 million in 2007-09. So, homebuying was 24% slower over the past three years than during the housing nightmare. Yes, there are far fewer homebuyers these days than during the big crash. However, the 12.4 million sales nationwide in 2023-25 were 13% higher than the 10.9 million in 2007-09."
"California's $710,000 median home price for December 2025 was 9% higher than three years earlier - and just 5% below its all-time high. Curiously, the nation's year-end price of $372,000 came after a 16% jump in three years. And it was a record high. This recent pricing is far different than what occurred during the Great Recession."
"California's price collapsed 45% in the three years ending in December 2009. Nationally, it was a 25% drop. Over the last three years, the Federal Reserve battled surging inflation by raising interest rates. Freddie Mac's average 30-year mortgage rate rose from 6.3% at the start of 2023 to 7.6% - then dropped to 6.2% by December 2025 as inflation finally cooled."
California's housing market has experienced a dramatic collapse that far exceeds the national trend. Sales fell 24% below 2007-2009 levels, dropping from 1.25 million to 954,423 units over three years, while nationwide sales increased 13% compared to the Great Recession period. Despite fewer buyers, California's median home price reached $710,000 in December 2025, only 5% below its all-time high and 9% above three years prior. Nationally, prices hit a record $372,000 after a 16% three-year increase. This contrasts sharply with the Great Recession, when California prices collapsed 45% versus a 25% national decline. Mortgage rates fluctuated from 6.3% to 7.6% over three years before dropping to 6.2% by December 2025.
#california-housing-market #regional-market-divergence #home-sales-decline #housing-affordability #mortgage-rates
Read at The Mercury News
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