California Real Estate Market Booms with Highest Sales Since 2022

I’ve been following the California housing market for years, and honestly, this recent uptick caught my eye. In November 2025, home sales across the state jumped to their highest level since September 2022. Existing, single-family homes alone totaled 287,940 sold units, up 1.9% from October and 2.6% from last November.

Seeing numbers like this in real time makes you pause — because it tells a story about demand, buyer confidence, and a slowly recovering market.

Now, before you get too excited, let me break down what this really means. That annualized figure isn’t just a random snapshot; it’s the number of homes we’d expect to sell in a year if November’s pace continued, adjusted for seasonal trends.

And when you look at the cumulative sales for the first 11 months of 2025, they’re already above last year’s level. That’s not just good news for sellers — it’s a sign that the market is stabilizing, which is what buyers like us have been waiting for.

But here’s the thing I noticed that most headlines skip: while statewide numbers are up, the growth isn’t uniform. Only 25 of the 53 counties tracked by C.A.R. saw year-over-year gains, and some areas are seeing double-digit surges while others lag behind.

This means the market is strong, but it’s nuanced — and that nuance is exactly what you need if you’re thinking about buying, selling, or investing.

Understanding the November 2025 Sales Surge

When I looked closely at the numbers, what stood out was not just the statewide uptick, but the regional differences driving it. According to Realtor, the gains were concentrated in certain counties, with Trinity County leading at a 60% increase, followed by Imperial (46.7%) and Mendocino (43.3%). That’s huge, and it tells us that local demand can spike even if broader trends are moderate.

Interestingly, higher sales didn’t always mean higher prices. For instance, Trinity County saw a 10.3% drop in median home prices, showing that volume and price trends can move in opposite directions. This nuance is critical if you’re trying to figure out where to buy or invest — you don’t want to assume that a sales boom automatically equals rising property values.

It also got me thinking about the role of lifestyle factors. Retirees and outdoor enthusiasts are moving into these counties for hiking, fishing, and a quieter pace away from overcrowded urban areas. If you’re a buyer, understanding these human factors is as important as looking at numbers.

Similarly, markets outside California, like Las Vegas, are seeing high buyer competition and rising sales, as detailed in Las Vegas real estate hits new highs as buyer competition intensifies.

How Prices Are Evolving Across California?

Let’s talk prices, because after all, sales are only half the story. Statewide, median single-family home prices dipped to $852,680 in November, down from $886,960 in October, while condos and townhomes nudged slightly higher to $660,000. And per square foot, the statewide median is now $423, slightly lower than last year.

But here’s where it gets interesting: regional patterns differ significantly. The Far North saw moderate gains (+2.7% YoY), while Southern California only edged up 1.2%, and the San Francisco Bay Area dropped 3.2% — the biggest statewide decline. Counties like Del Norte (+24.4%) and Tehama (+22.3%) are seeing price surges.

Why does this matter for you? Because if you’re buying or investing, knowing where prices are still climbing and where they’re softening can help you avoid overpaying and spot emerging opportunities.

Key Market Drivers Behind the Uptick

Now, let’s dig into why these numbers are moving. First, mortgage rates have become slightly friendlier. The 30-year fixed rate averaged 6.24% in November, down from 6.81% last year, according to C.A.R. That’s enough to nudge buyers off the sidelines, especially those who’ve been waiting for a more affordable entry point.

Seasonality also plays a role, but it’s not the whole story. November isn’t the typical peak month, which means the growth we’re seeing isn’t just a seasonal bump — it reflects real buyer interest and confidence.

Finally, demographics are key. Retirees moving north for outdoor recreation, young families leaving crowded metros, and investors seeking untapped markets — these human factors are shaping demand in ways that raw numbers alone can’t capture.

If you’re thinking about entering the market, pay attention to these patterns because they’ll affect price trends and competition.

If you want quick updates on California real estate trends and market alerts, you can see regular bite-sized insights via WhatsApp — it’s a convenient way to stay in the loop while tracking the market.

Challenges & Market Risks

Of course, every silver lining has a cloud. Wildfire risk is a real challenge in northern counties. Realtors like Doren Morgan highlight that large forested properties often face high or unavailable fire insurance, which can make buying risky.

Even if you love the scenery, insurance costs and availability are practical hurdles you can’t ignore.

Economic factors also matter. The market remains sensitive to interest rates and inflation. C.A.R. economists like Oscar Wei warn that momentum is fragile, especially outside the traditional homebuying season.

So while the numbers are encouraging, you have to stay alert — a small shift in rates or buyer sentiment can change the pace quickly.

For a broader perspective on how interest rates can influence home sales, take a look at how homebuilders expect sales to pick up in 2026 as interest rates drop.

What This Means for Buyers, Sellers & Investors?

So, what do these trends mean if you’re personally involved?

For buyers: The market is opening up slightly, but prices are still high in many counties. You’ll want to focus on areas with realistic growth potential and manageable prices, rather than chasing headline counties.

For sellers: If your property is in a county with rising sales and steady prices, now might be the time to list. But remember, competition is uneven — some markets are still soft, and pricing strategy is key.

For investors: Look beyond the obvious. Counties like Del Norte, Tehama, and Trinity are showing both sales growth and lifestyle appeal. These areas may offer value for longer-term investment, especially as urban buyers continue migrating north for space and outdoor amenities.

The takeaway? You have to combine numbers, local context, and lifestyle trends to make smart decisions.

And if you’re preparing to sell a property, these tips on selling property in New York City and avoiding closing day mistakes offer useful strategies that apply in any competitive market.

Expert Opinions & Forecasts for 2026

Looking ahead, I find the expert forecasts just as interesting as the current numbers. The California Association of Realtors (C.A.R.) projects mild to moderate growth for home sales and prices over the next 12 months. That means while momentum is building, it won’t be a sudden boom — more of a steady climb.

Mortgage rates are expected to decline slowly, but don’t expect dramatic cuts. Jordan Levine, C.A.R.’s Chief Economist, notes that the Federal Reserve’s cautious approach and signs of economic slowing will temper growth. From my perspective, this creates a window of opportunity: buyers can still enter the market without facing sky-high prices, and sellers can plan strategically without rushing.

Oscar Wei, C.A.R.’s deputy chief economist, points out that the market is highly sensitive to rates. Even a small shift can change buying behavior, so paying attention to both macro conditions and local market trends is key if you want to make smart decisions.

Interactive Data & Visual Insights

One thing I noticed missing in many articles is visual context. Seeing trends in a table or chart often makes the data more actionable. For example:

• Monthly Sales Chart (2022–2025): Shows the three-year trajectory and highlights November’s spike.
• Regional Sales & Price Table: Compare Far North vs Southern California vs Bay Area. This instantly tells you where opportunities exist.
• County Spotlight Visuals: Trinity, Del Norte, and Tehama — showing sales growth vs price changes, wildfire risks, and lifestyle appeal.

I personally like visualizing this before making any move — it turns abstract numbers into a clear picture of where demand, prices, and lifestyle factors intersect. For you, it’s a way to see where to focus your search or investment without getting lost in statewide averages.

Final Thoughts: Navigating California’s Housing Market Today

Looking at the numbers, the upswing in California home sales is encouraging, but it’s not a one-size-fits-all story. Some counties are booming, others are softening, and prices are moving in unexpected ways. That means whether you’re buying, selling, or investing, you need to look beyond the headlines and focus on local context, lifestyle factors, and economic signals.

From my perspective, the biggest takeaway is this: knowledge is your advantage. Track trends, pay attention to regional growth, watch mortgage rates, and consider the human side — why people are moving, which areas are attracting buyers, and what risks like wildfires might affect your decisions.

If you’re thinking about stepping into this market, don’t rush. Take the time to weigh numbers, trends, and real-life factors before making a move. And here’s my question to you: Which California county are you watching most closely, and why? Your insights might just help someone else navigate this complex market.

Want to explore more insights on real estate trends and market strategies? Check out our Real Estate & Homeownership section for tips and updates.

Disclaimer: The information in this article is for general informational purposes only and reflects data available at the time of publication. It is not financial, legal, or investment advice. Always consult a qualified professional before making real estate decisions.