Is the housing boom slowing, or just shifting gears?
California’s housing market experienced its second consecutive month of decline in April, while the statewide median home price reached a historic milestone, surpassing $900,000 for the first time in 10 months, according to a report by the California Association of Realtors (CAR).
Existing single-family home sales totaled a seasonally adjusted annual rate of 267,710 in April, falling 3.4% from March and dipping 0.2% from April 2024. This marked the lowest sales level in three months and the 31st straight month of home sales below the 300,000 benchmark.
Meanwhile, California’s median home price climbed to $910,160, increasing 2.9% from March and 0.7% from a year earlier. This growth represents the 22nd consecutive month of year-over-year price increases, though the annual gain was the smallest since July 2023.
“The housing market experienced a sluggish start to this spring buying season, as home purchase sentiment declined due to concerns over tariffs and a potential recession,” said CAR president Heather Ozur.
Trade tensions squeezing housing market
Economic uncertainty appears to be dampening market activity. After President Trump’s reciprocal tariff announcement on April 2, mortgage rates spiked and remained elevated throughout the month. Growing public concern about a possible recession triggered by these tariffs may have contributed to the slowdown in housing demand, CAR noted.
Despite these challenges, year-to-date statewide home sales were up 1.4% compared to the same period last year.
Regional performance varied across California. The Central Coast region recorded the biggest increase from last year with sales jumping 10.5%. The Central Valley and Southern California also saw increases of 3.4% and 1.6% respectively, while the Far North region and San Francisco Bay Area declined by 2.8% and 1.4%.
Inventory trends showed mixed signals. The unsold inventory index, measuring the number of months needed to sell the supply of homes at the current sales rate, remained unchanged at 3.5 months from March but increased from 2.6 months a year earlier. Total active listings reached a 66-month high, marking the 15th consecutive month of annual gain in housing supply.
“Home prices continued to rise last month, pushing the statewide median price to a new high in April,” said CAR senior vice president and chief economist Jordan Levine. “Despite reaching a new record, prices are moderating as the latest yearly growth pace slowed to its lowest since mid-2023."
The median time on market for a California single-family home was 21 days in April, up from 16 days in April 2024. The statewide sales-price-to-list-price ratio was 100% in April 2025, unchanged from the previous year.
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