Southern California Housing Market: Prices and Forecast 2025

In May 2025, Southern California's housing market showed a slight cooling with home sales down 7.6% year-over-year and median prices rising 0.9% to $888,000. Inventory increased, signaling a shift toward a more balanced market, though still favoring sellers. High mortgage rates around 6.77% are limiting affordability. Price growth is expected to slow, with steady demand driven by population and regional desirability.