Southern California Homebuying Remains Below Great Recession Levels

2025 was the third-straight year of sluggish home sales in the region, even as prices remain near record highs.

Published on Feb. 25, 2026

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Southern California home sales from 2023 through 2025 totaled 500,159, roughly equal to the previous two-year period, indicating a prolonged housing market chill. In 2025, the region saw the second-slowest year of home sales in the past 21 years, with 168,719 completed transactions, just above the historic low set in 2023. This marks the third consecutive year that homebuying has been slower than the 198,863 sales recorded in 2007, when the housing bubble crashed into the Great Recession.

Why it matters

The persistent weakness in Southern California's housing market reflects the region's affordability crisis, with high home prices and rising economic uncertainty deterring many potential buyers. While home prices have remained relatively flat compared to recent peaks, sales have collapsed, suggesting a 'buyer's market' dynamic in the region.

The details

Despite a 34% jump in existing home listings across the six counties in 2025, supply remains 14% below pre-pandemic 2019 levels. Investors, who own roughly one in six local houses, are helping prop up prices. Falling mortgage rates in late 2025 failed to spur much buying activity, as the typical monthly payment is still up 96% over the past six years, far outpacing the 32% rise in local wages.

  • In 2025, there were 168,719 completed home sales in Southern California, the second-slowest year on record.
  • 2025 was the third-straight year that homebuying in Southern California was slower than the 198,863 sales recorded in 2007, during the housing bubble crash.
  • The median home price in Southern California for December 2025 was $800,000, unchanged from a year earlier and only 4% below the record $831,000 set in June 2025.

The players

Attom

A real estate data company that provided the sales data for Southern California used in the article.

Freddie Mac

The government-sponsored enterprise that provided the average 30-year mortgage rate data cited in the article.

California Association of Realtors

The trade association that provided the affordability index data mentioned in the article.

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What they’re saying

“Call it what you want – chill, collapse, correction or crash – but house hunters are balking at high housing costs to an almost unfathomable degree.”

— Jonathan Lansner, Business Columnist (Southern California News Group)

The takeaway

The prolonged weakness in Southern California's housing market underscores the region's affordability crisis, as high home prices and economic uncertainty continue to deter many potential buyers, despite some signs of a 'buyer's market' emerging with increased inventory. The lack of sales, rather than falling prices, suggests a market in flux as both buyers and sellers grapple with the new realities.