Should I wait to buy a home?

Is Now a Good Time to Buy a Home in California?

This is one of the most common questions I hear—and as of April 2025, the answer is it depends. The California housing market is finally stabilizing after years of volatility, creating a unique window of opportunity for well-prepared buyers. While home prices remain elevated, a combination of rising inventory, more flexible sellers, and softening mortgage rates is making today’s market more buyer-friendly than it’s been in recent years.

Market Snapshot (April 2025)

• Median Home Price (Mar 2025): $884,350 — up 3.5% year-over-year

• Mortgage Rates: Averaging 6.8% for a 30-year fixed loan — down from 2023 highs

• Inventory Surge: 46% more homes on the market compared to last year

• Price Reductions: Nearly 30% of sellers dropped prices in early 2025

• National Average Mortgage Rate: 6.62% (as of April 10, per Freddie Mac)

• Monthly Payment Trends: Despite higher rates, the median monthly principal and interest payment is down over $100 year-over-year — a meaningful savings

Why Buying Now Might Make Sense

• More Inventory = More Leverage: With more homes on the market, buyers have more options and greater negotiating power.

• Price Appreciation Still Expected: Home prices are forecasted to rise steadily (3–4% annually) through at least 2029. A $400,000 home today could be worth $480,000 by 2030.

• Equity Builds with Time: The sooner you buy, the sooner you begin building long-term equity.

• Rates Are Off Their Highs: Mortgage rates have come down from their peak, making financing more accessible.

• Seasonal Advantage: Spring typically offers the best inventory variety, while fall/winter may offer better deals due to less competition.

• More Listings Nationwide: March saw about 10% more new listings compared to last year, a trend that’s continuing.

Things to Keep in Mind

• Affordability Remains a Challenge: Even with price drops and rate softening, California homes remain expensive.

• Economic Uncertainty: Concerns over tariffs, inflation, and potential recession could impact buyer confidence and market dynamics.

• Regional Variability: Hot markets like coastal cities remain competitive, while inland or less in-demand areas may offer better value.

Expert Insight

“Now is a good time to buy, if you can afford it. Prices are high and mortgage rates have sprung back up, but there is also significantly more inventory, giving buyers an upper hand in negotiation.”
— Redfin Chief Economist

Conclusion

If you’re financially ready and plan to stay in your home for several years, now could be a great time to buy. You'll start building equity sooner and benefit from long-term appreciation (which will help offset inflation). With more listings, increased seller flexibility, and a slower pace of price growth, today’s market offers more breathing room.

Not sure if the timing is right for you? I’m happy to talk through your options—or connect you with trusted loan officers to explore financing that fits your goals.