California Residential Market Tumbles to Near 21-Year Low

Homebuying in California nearly hit a more than two-decade low last quarter.

Across the state, 23,317 existing and newly built homes were sold in November, marking the second-lowest performance in the month in 21 years, the Orange County Register reported, citing Attom data. The sales were down 8 percent over a 12-month period and 30 percent below average.

Sales over the past three years have averaged 26,428 per month — down 31 percent from the pace of the previous 18 years. Mortgage rates averaged 6.3 percent in the three months ending in November, according to Freddie Mac data cited by the Register, down from a 6.5 percent average a year earlier and a recent peak of 7.4 percent in November 2022.

A year-end dip in mortgage rates did little to stimulate homebuying. The median sales price for a home in California was $735,000 in November, up 0.3 percent year-over-year and about 2 percent below the $751,000 peak set last June. At the same time, appreciation on properties has slowed, with home prices up 9 percent over the past three years compared to 32 percent gains from 2019 to 2022.

Even if buyers decide to move on a purchase, many decide halfway through the process that they’d rather not buy. Last August saw a peak in buyers canceling home-purchase contracts in Los Angeles and across the country, L.A. Business First reported, citing Redfin data. In L.A., 14.9 percent of sales fell through in August 2025, down from 15 percent in the previous August. Cancellations in San Jose rose to 6.9 percent year-over-year from 1.6 percent, marking the largest year-over-year increase in all metro areas tracked by Redfin, while the cancellation rate in San Francisco rose to 5.9 percent, a 2.3 percent year-over-year increase from 3.6 percent.

— Chris Malone Méndez