California homebuying falls below Great Recession lows

"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 24% decline in sales over 2023-25 compared to the 2007-09 housing crisis, with only 954,423 sales versus 1.25 million during the earlier period. This contrasts sharply with national trends, where sales increased 13% over the same timeframes. California's median home price of $710,000 in December 2025 remained 9% higher than three years prior and just 5% below its all-time high, whereas the nation's $372,000 median price reached a record high after a 16% increase. This pricing resilience differs fundamentally from the Great Recession, when California prices collapsed 45% and national prices fell 25%. Mortgage rates fluctuated significantly, rising from 6.3% to 7.6% before declining to 6.2% by December 2025 as inflation cooled.

Read at www.ocregister.com