The California housing market wrapped up 2025 with a surprising surge in activity, showcasing impressive sales growth in numerous counties, with Plumas County leading the charge with a phenomenal 133.3% increase in sales. This strong finish indicates a market that, despite some cooling in prices, is showing robust resilience and offering new opportunities for both buyers and sellers across the state.
December's numbers from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) were certainly a breath of fresh air. After a year that felt like a bit of a rollercoaster, seeing sales climb month-over-month and year-over-year for four straight months was a really positive sign. It tells me that people are still actively looking for homes and finding ways to make it happen.
What's really exciting is the widespread nature of this growth. It wasn't just one or two hot spots; the data reveals that 22 counties experienced double-digit increases in home sales in December compared to the previous year. This isn't just a small uptick; it's a significant jump that suggests a broad-based recovery and renewed interest in homeownership, even in areas that might not always grab headlines.
Plumas Leads California’s Housing Market as 22 Counties Post Double-Digit Sales Growth
A Closer Look at the Numbers: December 2025 in Focus
Let's break down what these figures actually mean. On a seasonally adjusted annualized rate, the sale of existing, single-family homes hit 288,200 units in December. This is a slight bump up from November (0.3%) and a more noticeable increase of 2.0% compared to December of the previous year. It might not sound like a massive leap, but when you consider the total volume and the consistent upward trend, it paints a picture of a market gaining momentum.
For the entire year of 2025, sales were up 0.9% compared to 2024, and the median home price saw a modest 1.2% increase. While this might seem small, remember that these are statewide averages. The real story, as we'll see, is in the local variations.
Plumas County: The Unlikely Superstar
The star of the show, without a doubt, is Plumas County way up north. A jaw-dropping 133.3% increase in sales is almost unheard of! This kind of surge suggests a few things might be at play. Perhaps there was pent-up demand, or maybe recent interest in more remote or affordable living has finally hit this beautiful, but less populated, region. It's also possible that a few larger developments or a significant number of smaller transactions came through in December, skewing the numbers dramatically. Whatever the reason, it’s a remarkable comeback and really highlights how diverse the California market can be.
Following Plumas, we saw Mono County with an impressive 100% sales growth, and Lassen County with a strong 44.4% increase. These counties, also in the less densely populated northern part of the state, are showing that opportunity isn't confined to the major metropolitan areas.
A Tale of Two Regions: Far North and Central Coast Shine
Looking at broader regions, the Far North truly stood out, with a remarkable 23.5% year-over-year sales increase. This aligns with the individual county data and suggests a strong trend in those more rural and mountainous areas. The Central Coast wasn't far behind, reporting an 11.5% rise in sales. These regions are often celebrated for their natural beauty and quality of life, and it appears more people are seeking that out.
It's interesting to contrast this with other major regions:
- Central Valley: Saw a healthy 5.5% sales increase.
- San Francisco Bay Area: Posted a more modest 2.0% annual sales gain.
- Southern California: Experienced a 1.7% increase.
These figures, while lower than the Far North and Central Coast, still indicate growth, which is positive news for those areas. The slight dip in year-over-year pending home sales by 0.2% might seem concerning, but on a month-to-month basis, it fell sharply by 21.5%. C.A.R. attributes this to seasonal slowdowns exacerbated by fluctuating mortgage rates and economic uncertainty. This is a typical pattern for December, so while it's something to watch, it doesn't necessarily signal a market downturn.
What About Prices? A Slight Cool-Down
While sales are up, the statewide median home price actually saw a slight dip in December, down 0.4% from November and 1.2% from December of the prior year, settling at $850,680. This is a story of cooling competition, which can actually be a good thing for affordability. It means that bidding wars might be less intense, and buyers can potentially negotiate more favorable terms.
This price moderation, especially when combined with falling mortgage rates (averaging 6.19% in December, down significantly from 6.72% a year prior), could be the key to unlocking the market for more hesitant buyers. As C.A.R. Senior Vice President and Chief Economist Jordan Levine noted, “Housing affordability showed some improvement in the fourth quarter, and the combination of lower mortgage rates and a growing supply of homes should encourage more prospective buyers to enter the market this year.” I couldn't agree more. Lower interest rates make a huge difference in the monthly payment, and when you couple that with potentially more room to negotiate on price, it creates a more appealing environment.
Regional Price Trends: A Mixed Bag
Even within the price data, we see regional differences:
- Far North: Median prices were up 2.8% year-over-year.
- Southern California: Saw a 0.6% increase.
- Central Coast: Experienced a slight 0.2% uptick.
- Central Valley: Prices were down 1.4%.
- San Francisco Bay Area: Median prices remained unchanged.
It's fascinating to see how these trends diverge. The areas with the most significant sales growth, like the Far North, are also showing price appreciation, suggesting healthy demand meeting a market that's still finding its footing in terms of supply.
County-Level Price Movers and Shakers
At the county level, the price picture is even more nuanced. Mono County again makes an appearance with a 27.1% price jump, followed by Imperial County (21.5%) and Lassen County (18.1%). These are often more affordable areas, and an increase in median price can reflect a shift in buyer preference or a greater number of higher-priced homes selling.
On the flip side, some counties saw noticeable price drops:
- Trinity: Steepest drop at -23.0%.
- Glenn: -18.6%.
- Siskiyou: -15.5%.
These kinds of declines can present opportunities for buyers looking for a bargain, but it's always crucial to understand the local factors driving these changes. Sometimes it's simply a fluctuation in the types of homes sold, and other times it points to broader economic shifts affecting the area.
Inventory and Days on Market: A More Balanced Picture
The data on housing inventory and days on market also offers valuable insights. The Unsold Inventory Index was at 2.7 months in December. While down from November, it was flat compared to the previous year. What this means is that while the supply of homes isn't overwhelming, it's also not critically low.
However, it's important to note that total active listings increased from a year ago for the 23rd consecutive month. This is a sign of a healthier supply, even if the rate of growth is slowing. This sustained increase in inventory, coupled with slightly longer selling times (36 days in December, up from 31 in December 2024), suggests a market that is moving away from the frenzied conditions of recent years towards a more balanced environment.
The Sales-Price-to-List-Price ratio of 97.9% in December (down from 98.7% in December 2024) further supports this. It means homes are selling for just below asking price on average, indicating that sellers might need to be more realistic with their pricing strategies. From my perspective, this is a positive development for the market's long-term health. A balanced market, where neither buyers nor sellers have an overwhelming advantage, is generally more sustainable.
What Does This Mean for the Future?
The strong finish to 2025 in California's housing market, with its widespread sales growth and more balanced conditions, sets a hopeful tone for 2026. The combination of easing price pressures, lower mortgage rates, and a steady supply of homes is creating a more inviting atmosphere for potential buyers. While economic uncertainties will always be a factor, the underlying trends suggest a market that is poised for continued, albeit modest, progress.
For those considering buying or selling, paying close attention to county-level and regional data is absolutely key. The broad statewide or even regional averages can mask significant local market dynamics. Understanding the specific conditions in your target area will be crucial for making informed decisions.
I'm particularly encouraged by the activity in the Far North and Central Coast. These areas, often overlooked in broader analyses, are clearly showing robust demand and offering unique lifestyle advantages. It’s a reminder that California’s housing market is far from monolithic.
The fact that Plumas County has taken such a commanding lead in sales growth is a story in itself. It speaks to the potential that exists in less traditional real estate hubs and the ever-evolving preferences of homebuyers. As we move deeper into 2026, I'll be watching to see if these trends continue and if other counties can replicate this remarkable surge in activity.
VS
Two Cleveland rentals: one massive property with unbeatable price per sq ft vs a smaller home with solid neighborhood rating. Which fits YOUR investment strategy?
We have much more inventory available than what you see on our website – Let us know about your requirement.
📈 Choose Your Winner & Contact Us Today!
Talk to a Norada investment counselor (No Obligation):
(800) 611-3060
Related Articles:
- Why Berkeley, California is the Top Housing Market in the West for 2025
- California Housing Market Rebounds With Sales Growth in 40+ Counties
- Best Time to Buy a House in California's Largest Metros in 2025
- California Housing Market Forecast 2026: Will it Crash or Recover?
- California Leads With Most At Risk Housing Market Counties in 2025
- Is the California Housing Market Heading for a Crash or Correction?
- California Housing Market: Forecast and Trends 2025-2026
- California Housing Market Graph 50 Years
- The Great Recession and California's Housing Market Crash: A Retrospective
- California Dominates Housing With 7 of Top 10 Priciest Markets
- Real Estate Forecast Next 5 Years California: Boom or Crash?
- Anaheim, California Joins Trillion-Dollar Club of Housing Markets
- California Housing Market: Nearly $174,000 Needed to Buy a Home
- Most Expensive Housing Markets in California
- Abandoned Houses for Free California: Can You Own Them?
- Homes Under 50k in California: Where to Find Them?




