24 Counties in the California Housing Market Post Annual Price Declines

While the overall numbers from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) might show a general uptick in California home sales for November, digging a little deeper reveals a more complex picture. It turns out that 24 counties across the state experienced annual price declines in their median home prices. This challenges the idea of a simple, universal market surge and suggests that the California housing market is anything but a monolith.

24 Counties in the California Housing Market Post Annual Price Declines

Let's get straight to it: even as statewide sales reached a three-year high, the reality on the ground in many local areas points to a cooling or at least a plateauing of home values. The median price for an existing single-family home statewide was $852,680 in November. This is technically flat compared to November of last year, but that small difference hides a lot of local variation.

Where Prices Are Dropping

The C.A.R. data clearly shows that not all parts of California are seeing their home prices rise. In fact, a significant number of counties have seen their median prices dip when compared to November 2024. For instance, in the Central Valley, the median home price saw a 1.0 percent decrease year-over-year, settling at $490,000. Similarly, the San Francisco Bay Area, a region typically known for its soaring property values, experienced a 3.2 percent decline in its median home price, now standing at $1,275,000.

Even within these broader regions, specific counties showcase these downward trends more dramatically:

• San Benito County: Saw a significant 11.3 percent drop in its median home price, falling to $732,500.
• Lassen County: Experienced one of the steepest declines at 26.6 percent, with its median price now at $185,000.
• Amador County: Reported an 11.9 percent decrease in median price, now at $470,000.
• Lake County: Noticed a 4.3 percent decrease, with the median price at $335,000.
• Humboldt County: Saw a 9.9 percent decline, bringing its median price to $410,000.
• Mono County: Though its price increased slightly year-over-year by 2.0%, it saw a substantial 19.0% drop month-over-month, indicating volatility.

This data is crucial because it highlights that buyers looking for more affordable options might find opportunities in these specific areas, while sellers need to be aware of the local pricing trends.

The Bigger Picture: Sales vs. Price Growth

It's important to reconcile the reported increase in sales with these price declines. While the statewide sales increased by 2.6 percent year-over-year to 287,940 homes, this surge doesn't automatically translate to price hikes everywhere. Several factors might be at play:

• Inventory Levels: In many areas with declining prices, the unsold inventory might have increased, giving buyers more leverage. For example, many counties saw their Unsold Inventory Index rise year-over-year.
• Buyer Demand Shifts: Buyers might be prioritizing affordability, especially with ongoing economic uncertainties, leading them to areas where prices are more accessible or declining.
• Affordability Constraints: Even with slightly lower mortgage rates, the sticker price of homes, especially in once-hot markets, remains a significant barrier for many. When prices dip in certain counties, it can attract buyers who were previously priced out.
• The Nature of Median Price: It's important to remember that the median price is simply the middle point of all sales. A few high-value sales in one month compared to another can skew this number. However, when 24 counties show year-over-year declines, it’s a strong signal of a broader trend in those areas.

Regional Dynamics: A Mixed Bag

Let's look at how these price declines are distributed across California's regions, according to C.A.R.'s November 2025 report:

• San Francisco Bay Area: As mentioned, this region saw a collective 3.2 percent drop in its median home price. Individual counties within this region also showed significant declines:
  • Alameda: -7.2%
  • Marin: -9.5%
  • San Mateo: -8.8%
  • Solano: -2.8%
  • Sonoma: -0.5% However, a few counties like Napa (+4.1%) and San Francisco (+12.6%) bucked this trend, showing price appreciation. This highlights the continued disparity even within the Bay Area.
• Central Valley: This region saw a 1.0 percent decrease in its median home price. Here are some notable county figures:
  • Kern: -2.5%
  • Sacramento: -2.8%
  • San Benito: -11.3%
  • Stanislaus: -1.0%
  • Tulare: -3.1% Counties like Glenn (+3.1%) and Merced (+6.0%) showed price gains, illustrating the diverse economic forces at play in the Central Valley.
• Central Coast: This region experienced a slight 0.2 percent increase overall, but some counties saw declines:
  • Monterey: -3.1%
  • San Luis Obispo: -1.6% Conversely, Santa Barbara saw a healthy 9.6% increase.
• Southern California: This large region saw a 1.2 percent increase in its median home price. However, several counties within Southern California actually reported annual price declines:
  • San Bernardino: -2.5%
  • Imperial: Despite an 11.6% monthly increase, the year-over-year price saw a 0.0% change.
  • Los Angeles saw a slight 0.6% annual increase, but monthly figures indicate a downward trend.

It's also worth noting the Far North, which actually saw a 2.7 percent gain in its median home price. This region, along with parts of Southern California and the Central Coast, were the only major regions to record year-over-year increases.

My Perspective: A Market Authenticating Itself

From my years working in real estate in California, I've learned that the market rarely behaves uniformly across such a vast and diverse state. What the C.A.R. November report shows, with over half the counties experiencing price declines, is less of a “roaring back” and more of a market reality check.

The overall sales increase is indeed encouraging, suggesting renewed buyer activity. However, price appreciation is not a given in every single market. This is actually a sign of a healthier, more realistic market. The era of automatically expected price hikes everywhere has likely cooled. Instead, we're seeing value emerge in areas that offer better affordability or where demand is genuinely strong and sustained, not just a broad, state-wide surge.

The fact that 24 counties are showing annual price declines means that buyers have more negotiation power in those specific local markets. For sellers in these areas, it's essential to be realistic about pricing. The days of listing a home and expecting multiple offers significantly above asking might be over for them. Instead, a well-priced, well-presented home in a desirable location is still key, but the “easy money” of rapid appreciation has tempered.

What Does This Mean for You?

• For Buyers: If you're looking in one of the 24 counties experiencing price drops, this could be a prime opportunity. You might be able to find a home for less than you would have a year ago, especially if you're patient and do your homework on local market conditions. However, remember that sales are still up statewide, so desirable properties in appreciating markets may still move quickly.
• For Sellers: Understand your specific local market. If you're in a county with declining prices, be prepared for a potentially longer selling process and price your home competitively from day one. If you're in an appreciating market, you're in a stronger position, but still need to be strategic.
• For Investors: This data suggests opportunities for strategic investment. Areas with declining prices might represent a chance to buy at a lower entry point, with the potential for future appreciation as the market continues to balance out.

Looking Ahead

While the statewide sales figures paint a picture of recovery, the price declines in nearly half of California's counties suggest that the market's “roar” is far from uniform. It's a testament to the diverse economic realities within California, where local conditions often dictate the real estate experience. As we move forward, paying close attention to county-level data will be more critical than ever for anyone involved in the California housing market.