Home prices have come down slightly in California, according to a new report.
In May 2025, RedFin found home prices were down 0.088% yearly, with the median sale price $895,000. Overall, the number of homes sold was down 8.9%, from 26,965 in May 2024 to 24,579 this year.
Just over 40% of homes sold in May were above list price, down 9.7 points year over year, and 34.8% of homes had a price drop, up from 24% in May last year.
While the data signals a slight respite for potential homebuyers in California’s hot housing market, the outlook varies depending on where you look. RedFin has also identified which cities have seen the fastest rising home sale prices in the last year.
RedFin’s 10 cities with the fastest-growing home sale prices
Annual salary needed to afford a home in California on pace to exceed $250K
In California, the income needed to afford a home could exceed $250K annually, according to a new report by HireAHelper.
By 2030, home prices are projected to outpace income growth in all fifty states, with a national median sale price of $615,000.
In California, the outlook is even more stark, requiring an income that is higher than any other state.
Looking at housing data within the state, report authors identified Irvine with the highest predicted house price in 2030 of nearly $3 million, requiring a minimum income of $589,862.
Along with Montana and Idaho, California is among several Western states poised to become unaffordable for median earners.
Are there enough homes in California to meet buyer demand?
The number of homes for sale has increased in California over the last year, according to RedFin.
In May 2025, were 101,787 homes for sale in California, up 8.5% from last May. The number of newly listed homes was 34,659, down 8.2% year over year. The average months of supply is 3 months, which remained unchanged.
What California cities have the most competitive housing market?
The cities with the most competitive housing market are centered around the SF Bay Area and within commuting distance of high-paying jobs in Silicon Valley: Alameda, Daly City, Berkeley, Castro Valley, Danville, Livermore, Hayward, Cupertino, and San Ramon.
Citrus Heights, a small city (pop: 86,909) in the Sacramento metro area, was also identified in the Top Ten of most competitive by RedFin.
This article originally appeared on Palm Springs Desert Sun: Home prices are increasing the fastest in these 10 California cities
Reporting by Roseann Cattani, Palm Springs Desert Sun / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
