"Prices have fallen below their year-ago levels for three consecutive months, the first prolonged dip since 2023" per an article by my favorite economy-writing journalist, Jonathan Lansner of the Southern California News Group. "The recent slips don’t offer much help to California house hunters battling lofty prices. The statewide median is only 3% off its June 2025 peak of $751,000," he went on to write.
Depending on what type of property you are selling, and where it is located, there are still some holding and even increasing in value. I recently sold a 3 bedroom, detached home in Santee and we were able to drive the price up over comparable sales with multiple offers because it was a clean, attractive single story so we had both ends of the market bidding - young families and downsizing seniors. Unfortunately, this year I have also seen the other side with current listings that would have sold higher as recently as last summer.
With sellers still holding on to their ideas on pricing and buyers feeling unable to afford a home the market is lethargic. During the past four years, 1.34 million California homes were sold — 26% fewer than in the previous four years. Lansner goes into the financial reasons for the slow down. His article is a good read.
None of this says we are heading toward a big drop in prices but if you are considering selling it might be good to dive in now before the market is even more saturated with listings. Once that happens some sellers will be forced to sell due to life events and they may have to reduce their price in order to make it happen. Then the dominoes will fall. Once comparable sales drop then properties no longer appraise at the higher value and all sellers will need to adjust their thinking on what their property is worth. Let's talk if you are considering selling this year.
