21 Counties in the California Housing Market See Price Drops From a Year Ago

Are you looking to buy or sell a home in California? If so, understanding the latest market trends is crucial. The hot topic? 21 counties in California experience price drops from a year ago, indicating a shift in the housing market. Specifically, Trinity County leads the decline with a significant 19.2% drop, followed by Mendocino (-15.0%) and Plumas (-14.6%). What's causing this change, and how can you leverage it? Let's dive in, and I'll share my thoughts as a real estate enthusiast who’s been watching these patterns develop.

21 Counties in the California Housing Market See Price Drops From a Year Ago

Analyzing the Price Drops: Understanding the “Why”

First, let’s understand what exactly is transpiring here. According to the California Association of Realtors® (C.A.R.), statewide median home prices in July clocked in at $884,050, which is down 0.3% from July of last year. But statewide figures don't tell the whole story.

Several factors contribute to these localized price drops:

• Elevated Mortgage Rates: Higher interest rates make buying a home more expensive, decreasing buyer demand. This is always a major player.
• Economic Uncertainty: Concerns about the economy also have potential buyers hitting pause.
• Plateauing Inventory: Housing inventory in California is increasing which means buyers have more options.
• Seasonal Trends: The market can sometimes be slower during particular months which exerts downward pressure on the costs.

So, which counties are seeing these impacts the most? Here's a detailed look:

The 21 California Counties with Year-Over-Year Price Drops (July 2025)

To make it super clear, here's a handy list of the counties where prices are down compared to last year, along with the percentage decrease:

County	YOY Price Change
Trinity	-19.2%
Mendocino	-15.0%
Plumas	-14.6%
Del Norte	-13.0%
Napa	-12.1%
Nevada	-9.8%
San Luis Obispo	-9.2%
San Joaquin	-9.4%
Contra Costa	-5.9%
Kern	-5.6%
Mariposa	-4.8%
Calaveras	-3.6%
Shasta	-3.7%
Stanislaus	-2.1%
San Bernardino	-2.2%
Ventura	-2.3%
Alameda	-2.3%
Riverside	-1.5%
Kings	-1.1%
Sonoma	-0.5%
Los Angeles	-0.4%

What This Means for Buyers: Opportunities Abound

If you're a prospective home buyer, especially in one of these 21 counties, now could be a good time to start looking seriously. Here’s why:

• More Negotiation Power: With prices softening, you have a bit more leverage to negotiate a better deal. Don't be afraid to make offers below the asking price, especially if the home has been on the market for a while.
• Interest Rate Dips: While mortgage rates remain elevated, any small dip can make a difference in your monthly payments. Keep an eye on rate trends and consider locking in a rate when it seems favorable.
• Increased Inventory: More homes on the market mean more choices, and you can afford to be pickier about finding the right property for your needs and budget.
• Less Competition: Price decrease would lead to less competition so you have a better chance of scoring your desired property..

What This Means for Sellers: Time to Get Strategic

For homeowners in these counties looking to sell, it's time to adjust your strategy to meet the current market:

• Realistic Pricing: Overpricing your home can lead to it sitting on the market for too long, ultimately resulting in a lower sale price. Work with a knowledgeable real estate agent to determine a competitive listing price based on recent sales data in your area.
• Highlight the Positives: Focus on what makes your property stand out. Invest in minor upgrades, stage your home well, and create compelling marketing materials that showcase its best features.
• Consider Incentives: Be open to offering incentives to attract buyers, such as covering closing costs, providing a home warranty, or offering a credit for repairs. This shows you're willing to work with buyers.
• Be patient: Selling in a buyer's market may take longer than expected. Don't get discouraged if you don't receive immediate offers, and be prepared to negotiate.

Long-Term Thinking: California Real Estate Still a Solid Investment?

Even with these recent price drops, I believe California real estate remains a solid long-term investment. The state's strong economy, desirable lifestyle, and limited housing supply continue to drive demand. Any localized corrections often present opportunities for savvy buyers and investors.

Beyond Home Prices: Other Market Indicators

It's important to look beyond just home prices. C.A.R. also reports that:

• Statewide home sales decreased 4.1% from July 2024.
• Pending sales have slipped from last year’s level for the eighth consecutive month.
• The median days it took to sell a home in July was 28 days, up from 20 days a year ago.

These indicators reinforce the idea that the market is cooling off, providing additional insight for both buyers and sellers.

Final Thoughts and My Personal Opinion

The real estate market is constantly in flux, and understanding these dynamics is key to making informed decisions. While 21 counties in California experience price drops from a year ago may seem concerning, it's more a recalibration than a crash. Now is the time to gather your data, consult with experts, and consider your personal financial goals. Whether you're buying, selling, or simply observing, knowledge is your greatest asset.