California Housing Shifts Toward Buyer's Market

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According to recent data from Redfin, California's housing market is shifting towards a buyer's market, with most major markets in the state having significantly more sellers than buyers. The latest figures show that eight key California markets had 35% more sellers than buyers, giving house hunters more options and leverage in negotiations.

Why it matters

This trend marks a notable shift in California's historically tight and competitive housing landscape, where sellers have long held the upper hand. The change could provide some relief for prospective homebuyers who have struggled with high prices and limited inventory in recent years, though it also raises concerns for sellers about increased competition.

The details

Redfin's analysis combines the number of homes listed for sale with statistical estimates of the corresponding number of potential buyers. By this metric, the eight California markets tracked had 72,840 sellers compared to just 54,045 buyers - a 35% surplus of sellers. Redfin defines a buyer's market as having at least 10% more sellers than buyers, while a seller's market has 10% more buyers. The rest of the country leaned even more heavily towards buyers, with 43% more sellers than buyers overall.

• The latest Redfin data is from December 2025.