The California housing market in February 2025 presents a complex landscape characterized by rising prices and fluctuating sales dynamics. The Median Sales Price has reached $833,300, marking a significant year-over-year increase of 6.2%. This upward trend in sales prices is mirrored by the Median List Price, which stands at $873,500, reflecting a 3.4% increase from the previous year.

Price Per Square Foot has also seen an upward trajectory, with the median Price Per Square Foot at $521, a 4.4% increase year-over-year. Similarly, the Median List Price per square foot has risen to $534, up by 4.7% compared to last year. These figures indicate a robust demand for housing, despite the challenges in the market.

In terms of sales activity, the number of Homes Sold has slightly decreased by 0.6% year-over-year, totaling 18,538 homes. However, Pending Sales have increased by 6.0%, reaching 25,218, suggesting a potential uptick in future sales. New Listings have surged by 11.9%, with 29,191 homes entering the market, which could provide more options for buyers.

Inventory levels have decreased by 4.9% year-over-year, with 45,875 homes available, contributing to a tighter market. The Months of Supply have also dropped by 10.0%, now at 2.5 months, indicating a seller's market where demand outpaces supply. The Median Days on Market have increased by 7.0%, now averaging 42 days, suggesting that homes are taking slightly longer to sell.

The average sale to list ratio is at 100.1%, a slight decrease of 0.3% from last year, indicating that homes are generally selling at or near their list prices. The percentage of Homes Sold above list price has decreased by 3.8%, now at 38.9%, reflecting a slight cooling in competitive bidding. Price Drops have increased by 12.5%, with 30.2% of listings experiencing reductions, which may indicate some resistance to higher prices among buyers.

Lastly, the percentage of homes going off the market within two weeks has decreased by 2.5%, now at 37.3%, suggesting a slight slowdown in the speed of transactions. Overall, the California housing market in February 2025 is characterized by rising prices and a competitive environment, with some signs of moderation in sales activity and inventory levels.