California Housing Inventory Surges in March 2025

News Summary

As of March 2025, California’s housing market is experiencing a significant turnaround with a 50% increase in active housing inventory compared to last year. While the state still faces a 20% decrease in homes since pre-pandemic levels, certain markets, like San Francisco, are seeing a larger selection of homes for buyers. The statewide median home price is around $884,350, showing a modest annual increase. Experts expect continued price rises but also face challenges such as high mortgage rates and housing affordability concerns. Overall, the outlook for the housing market remains cautiously optimistic.

Welcome to the Golden State: Housing Inventory on the Rise!

Hey there, California! As we dive into March 2025, the housing scene is buzzing with activity. You may have noticed that the number of homes for sale has dramatically shifted over the past year. The latest reports show that California’s active housing inventory has risen by an eye-popping 50% compared to last year. Yes, you read that right! That’s a significant turn of events in our housing market.

A Peek into the National Scene

Before we get too excited, let’s take a step back and look at the bigger picture. Across the nation, the active housing inventory is still about 20% lower than those cozy pre-pandemic levels we all miss so much from March 2019. Despite that, there has been a 29% year-over-year leap in active listings from March 2024 to March 2025. So, if you’re thinking about buying or selling, it seems like a more favorable time than in recent history.

The Golden State’s Unique Situation

Now, diving back into California specifically, we’re seeing some interesting trends. While it’s fantastic that the inventory is climbing, it’s crucial to note that our state still has 20% fewer homes available compared to March 2019. Out of our 36 major counties, which each have at least 100,000 residents, only nine have more homes available than they did before everything turned upside down. For the other 27 counties, they are still trying to catch up and have inventory levels below those pre-pandemic numbers.

The Homebuyer’s Advantage

The surge in active listings is giving homebuyers in certain markets a bit more leverage. Picture this: if you’re searching for a home in San Francisco, you’re likely to find a greater selection compared to regions like Orange County, where the inventory is still tighter. This change is creating a more favorable environment for home seekers looking for their dream abode.

Price Trends to Watch

$884,350 as of March 2025, marking a modest 3.5% increase since last year. Experts are predicting prices will continue to climb, with forecasts suggesting a rise of 4.6% by the end of the year, potentially reaching approximately $909,400.

The Dynamics of Supply and Demand

The increasing inventory is a sign that the market may be leaning towards a more balanced approach. The unsold inventory index (UII) is indicating that supply and demand might be starting to find their equilibrium, which is exciting news for potential homebuyers. However, the housing affordability index remains a challenge, with only about 16% of households able to afford a median-priced home.

A Few Roadblocks Ahead

6.83% for a 30-year fixed loan, many may find it tough to navigate this market. Additionally, uncertainties around the economy could put a damper on homebuying excitement. Regardless, there’s a silver lining: California’s government is stepping up efforts to boost inventory with new laws designed to ease regulations on building duplexes and streamline permits for Accessory Dwelling Units (ADUs).

Looking to the Future

10.5% increase in existing home sales, totaling around 304,400 units. With ongoing changes in inventory and guidelines from local governments, there’s a mix of challenges and opportunities ahead for both buyers and sellers in the Golden State. Keep your eyes peeled; exciting times are ahead!

Deeper Dive: News & Info About This Topic

• Fast Company: Housing Market Shift
• Norada Real Estate: California Housing Market
• Resi Club Analytics: California Housing Market
• Wikipedia: Housing Market
• Forbes: Housing Market Predictions
• Google Search: California Housing Market 2025