Introduction
Staying informed about real estate in California news is essential for buyers, sellers, investors, and industry professionals. The California housing market continues to evolve in response to economic conditions, regulatory changes, and shifting buyer behavior.
In this post, we’ll cover:
- Recent price trends and inventory updates
- Policy and legal changes affecting homeowners and investors
- Regional market highlights
- What to expect in 2025
Let’s dive into the latest updates shaping real estate across the Golden State.
California Home Prices & Inventory Trends (Q1 2025)
As of early 2025, the California housing market shows signs of stabilization after several years of volatility.
Key Highlights:
- Median Home Price : $790,000 (slight increase from 2024)
- For Sale Inventory : Low to moderate
- Average Days on Market : 48 days
- Pending Sales : Up 3.6% YoY
- Mortgage Rates : Holding steady around 6.2%
While affordability remains a challenge, some inland and secondary markets are seeing increased activity as remote work allows buyers to move beyond coastal areas.
Top Performing Markets in 2025
Some cities continue to outperform others in terms of sales volume, appreciation, and investment interest.
Cities to Watch:
- Sacramento : Growing population and strong rental demand
- Fresno : High cash-on-cash returns and affordable entry points
- Bakersfield : Rising popularity among first-time buyers
- Inland Empire (Riverside/San Bernardino) : Logistics boom driving investor demand
- San Jose & San Francisco Bay Area : Tech-driven rebound in high-end market
Investment Activity Update
Despite higher financing costs, real estate investors remain active in California, particularly in:
- Buy-and-hold rentals
- House flipping
- Wholesaling
Rental growth has slowed slightly to +2.9% YoY , but vacancy rates remain low, supporting continued demand.
Policy and Legal Updates (2025)
California lawmakers continue to shape the real estate landscape through new regulations and housing initiatives.
Recent Developments:
- SB 1045 – Rent Cap Expansion : Some cities now cap annual rent increases at 5% + inflation
- AB 2162 – Short-Term Rental Regulation : New registration and tax requirements for Airbnb-style rentals
- Affordable Housing Incentives : Expanded funding for developers building mixed-income housing
- Wildfire Insurance Reform : New rules aim to stabilize insurance availability in fire-prone zones
These changes impact both homeowners and investors, so staying up-to-date is crucial.
Buyer Behavior in 2025
Buyer preferences are shifting as more people prioritize flexibility and affordability.
Key Trends:
- Remote Work Influence : More buyers relocating to quieter, more affordable regions
- First-Time Buyers : Relying more on down payment assistance programs
- All-Cash Buyers : Still active, especially in competitive bidding situations
- Luxury Market Resilience : High-net-worth buyers keeping premium property values stable
Forecast for the Rest of 2025
Experts predict:
- Gradual appreciation across most markets
- Continued tight inventory in desirable locations
- Growth in green and energy-efficient homes
- Increased use of AI tools in real estate transactions
- Ongoing migration from high-tax states
The overall outlook remains cautiously optimistic, with opportunities growing in inland and secondary markets.
Conclusion
Real estate in California continues to evolve in 2025, shaped by market dynamics, legislative changes, and shifting buyer behavior. Whether you’re buying, selling, or investing, staying updated with the latest real estate in California news will help you make smarter decisions.
Frequently Asked Questions (FAQs)
Q: Is the California housing market improving?
A: Yes—inventory is slowly increasing, mortgage rates have stabilized, and buyer demand remains steady.
Q: Are home prices dropping in California in 2025?
A: No major decline; prices have plateaued with modest appreciation expected.
Q: What is the best place to invest in California real estate now?
A: Sacramento, Fresno, Bakersfield, and the Inland Empire show strong potential.
Join The Discussion