Southern California’s market is finishing 2025’s peak season on a surprisingly steady, upbeat note. Prices have held up, mortgage rates have nudged lower, and inventory is modestly higher than a year ago — giving both buyers and sellers a bit more room to maneuver. Here’s the quick read, with year-over-year context.
Market snapshot (YoY unless noted)
- Mortgage rates: The average 30-year fixed is 6.30%, essentially level with this time last year and at about a 12-month low – helping affordability at the margins.
- California, statewide (Aug 2025): Median price $899,140, up 1.2% YoY.
August’s statewide median home price was $899,140, up 1.7 percent from $884,050 in July and up 1.2 percent from $888,740 in August 2024.
- Homes for sale (CA, Sep 2025): 104,700 active listings, +2.5% YoY; about 3 months of supply – still a seller-leaning market, but less tight than 2024.
Existing, single-family home sales totaled 264,240 in August on a seasonally adjusted annualized rate, up 0.9 percent from 261,820 in July and down 0.2 percent from 264,640 in August 2024.
Southern California highlights
- San Diego (city): Median sale price $937K, 1% lower YoY; typical home goes pending in 35 days – a touch slower than last year, but activity has improved as rates eased.
- Los Angeles (city): Median sale price $1.1M, 7% higher YoY; time to sell about 61 days, reflecting more deliberate, negotiated transactions.
- Orange County (county): Median price $1.13M, 4% higher YoY (September snapshot).
What’s shifted since last year
- Rates down a hair, patience up: Slightly lower rates reduced monthly payments versus summer highs, but buyers are taking longer to choose—reflected in days-on-market trends.
- Inventory a bit better: More homes on the market than last September gives buyers options and encourages realistic pricing, yet supply remains below “balanced.”
- Prices: resilient, not runaway: San Diego is roughly flat YoY, LA and OC are modestly higher. Statewide prices turned positive again in August after mid-year softness.
What it means for you
- Sellers: Well-presented listings priced against today’scomps are still drawing healthy traffic. Pre-escrow prep (clean title, HOA docs, upfront TDS/SPQ accuracy) shortens timelines and protects your net.
- Buyers: Slightly better selection plus rate relief means more negotiating room on contingencies and credits—especially on homes that have been on market >30 days. Lock options and rate-float strategies matter again.
- Investors / move-up plans: With YoY inventory gains and steadier rates, laddering closings (sell-to-buy) has become more feasible than it was last fall.
