The California housing market is seeing a bit of a cooling trend, with home sales showing a slight decrease. The state recorded a 3.4% decline in home sales in September compared to August 2024, but year-to-date figures still show a minor increase of 0.9%. This suggests a stabilization after the hectic years driven by the pandemic, as more buyers weigh their options amid a more balanced market environment. The positive news for buyers is that inventory has increased significantly, with a 31.9% year-over-year jump in active listings. This expanded inventory is making the market more favorable for buyers who now have more choices, and properties are staying on the market longer, providing more negotiating power to those interested in buying a home【101†source】【102†source】. Home Prices and Regional Differences Median home prices in California have experienced a slight drop, standing at $868,150 in September, down from $888,740 in August. Despite this decrease, the prices are still higher than those seen in the same month last year, reflecting a moderate 2.9% annual increase. This cooling of price growth could be seen as an opportunity for buyers, especially as mortgage rates continue to decline, making housing more affordable. Notably, the market remains highly localized, with regions like the San Francisco Bay Area experiencing declines in home prices, while other areas like Southern California continue to see price increases. For instance, in September 2024, the Far North region saw a significant sales increase, while areas like the Central Coast and Central Valley had mixed results【101†source】【102†source】. Looking Ahead Experts predict that home prices will continue to rise gradually, with some regions expected to see increased prices as early as March 2025. The ongoing rise in inventory and the anticipated reduction in mortgage rates might bring more buyers into the market in the coming months, which could drive up demand and stabilize prices. For now, the California real estate market seems to be moving towards a more balanced environment where both buyers and sellers have opportunities depending on timing and region【103†source】. If you’re interested in a deeper dive into California’s real estate market, you can check out detailed trends and data on sites like Norada Real Estate and Houzeo.