CA reale state market

[Mohamed Youssef]

I've been thinking about buying an investment property, and I'm looking locally here in California, even though it is very hard to find any properties in CA that will cash flow, and I'm also looking at out-of-state. I decided to dive into some recent CA market data. Here's what I noticed:

1. Inventory Levels: There are definitely more homes for sale now compared to this time last year, active listings in California are up about 50% from March 2024. But even with more houses hitting the market, the supply is still lower than we'd typically see in a balanced market.
2. Home Prices: Prices are still climbing, but at a much slower pace. The median home price across California is projected to rise by around 4.6% in 2025, reaching approximately $900,000. Some areas, like the Bay Area, have seen prices grow at an even slower rate (around 3.5%). Also, some property types like condos start seeing price drops.
3. Mortgage Rates: Mortgage rates seem to be easing slightly in 2025 and are still lower compared to a year ago. Even so, affordability remains tight, with only about 16% of Californians able to comfortably afford the median-priced home.

As someone actively looking at investment properties, I'm noticing a slowdown in the market. While more houses and slightly better mortgage rates sound promising, there's enough uncertainty out there to keep me cautious. I'm not rushing into any deals just yet, and I suggest fellow investors, especially those newer to real estate investing, take the time to carefully evaluate opportunities before jumping in.

[Ashleigh Medina]

I am located in San Antonio and although the rates have affected our market, we still have a lot of affordable options to start investing, usually as a new build. I am not as familiar with the market in California but I do completely agree with you assessment to carefully evaluate each deal before making a decision. I also think reaching into different markets might be a really great option for you as a first time investor as well. Good luck!