Southern California Housing Market Update – November 2025

The Southern California housing market continues to evolve as we move deeper into fall. While home values remain strong across most of the region, the market today looks different than it did even a year ago. Here’s what’s happening locally — and what it means for buyers and sellers right now.

Inventory Is Slowly Increasing

We’re seeing more homes hit the market compared to this time last year, particularly in Riverside and San Diego Counties. While inventory is still historically low, the increase is giving buyers a bit more breathing room than they’ve had in the past several years.

• More new listings are appearing compared to summer.
• Homes aren’t selling as instantly — many are now on the market 2–4 weeks plus before receiving offers.
• Well-priced, well-presented homes are still moving quickly.

For sellers: Presentation, pricing strategy, and marketing matter more now than they did during the peak “multiple-offer frenzy” years.
For buyers: This is one of the better windows we’ve seen in a while to shop without intense bidding wars.

Prices Remain Stable — With Some Softening in Certain Areas

Home prices in Southern California remain high due to continued long-term demand and limited land supply. However, price growth has cooled.

• Many neighborhoods are seeing values hold steady.
• Some previously overheated areas are experiencing slight price adjustments.
• Move-in-ready homes are still commanding strong offers, especially in desirable school districts and master-planned communities.

Translation: Sellers shouldn’t expect last year’s “stretch” prices, and buyers shouldn’t expect steep price drops — the market is balancing, not crashing.

Mortgage Rates Have Eased

Mortgage rates have come down from their highest points earlier in the year, which has helped bring some buyers back into the market.

• Typical 30-year rates are now in the mid-6% range, depending on credit and loan type.
• Many buyers are using rate buy-downs, VA eligibility, or Assumable Loan Opportunities where available (these continue to be extremely attractive in our area).

When rates move even a little, buyer activity changes quickly. If rates dip again, expect competition to heat up.

What This Means for Sellers

This is still a seller-advantaged market — just not the runaway environment we saw from 2020–2022.

To get top value:
✔️ Price strategically based on today’s comps
✔️ Prepare the home to show beautifully
✔️ Work with an agent who markets aggressively, not just lists and waits

Great homes priced right are still selling with excellent results.

What This Means for Buyers

For the first time in several years, buyers have:
✔️ More choices
✔️ More time to decide
✔️ More room to negotiate

There are still incredible opportunities to build long-term equity in Southern California — especially in well-loved communities like Temecula, Murrieta, Menifee, Wildomar, Winchester, Fallbrook, and Valley Center, where lifestyle and value remain strong.

Bottom Line

The Southern California real estate market is normalizing — not crashing. It’s becoming more balanced, thoughtful, and strategic. Whether you’re considering buying, selling, or simply keeping an eye on home value, this is a great moment to plan ahead instead of waiting and reacting later.

If you’d like a custom home value estimate, neighborhood market report, or to discuss timing, my team and I are always here to help.