Will Home Prices Drop in California? What’s Really Happening in the Market
- Tristen Campanella
- Apr 7
- 3 min read
(And How to Get Clear on What You Want in a Home 🏡)
As we step deeper into spring, the San Diego real estate market—like much of California—is continuing to shift. And with that shift comes an opportunity to pause, reflect, and realign with what you truly want in a home.
I’ve been getting this question a lot lately:“Will home prices drop in California this year?”
It’s a valid question—and the answer isn’t as simple as yes or no. So let’s take a closer look at what’s actually happening in the market right now, and then I’ll share a free guide to help you tune into your own personal next step (because clarity is everything when making big decisions like buying a home).
📉 Market Snapshot – Slight Shifts, Big Meaning
The latest data paints a mixed picture—but there’s an undercurrent of possibility here for both buyers and sellers who are intentional, informed, and ready.
Here’s what we’re seeing:
Closed Sales fell slightly for detached homes (-0.4%) and more significantly for attached homes (-10.7%).
Pending Sales increased 1.1% for detached homes—showing that buyers are still stepping forward—even while attached homes saw a small decline (-0.7%).
Median Sales Price inched up for detached homes (up 0.6% to $1.17M), while attached homes dipped a bit (down 4% to $720K).
Days on Market rose—4% for detached homes and a significant 58.3% for attached homes.
Inventory is on the rise: up 8.7% for detached and 47.4% for attached homes.
And it’s not just local.
Nationally, there were 1.24 million properties for sale in March—a 5.1% increase from the previous month and a 17% jump year-over-year, according to the National Association of Realtors (NAR). That brings us to a 3.5-month supply—still a seller’s market, but a much-needed increase in breathing room compared to the ultra-competitive pace of the past few years.
So… will home prices drop in California?
Here’s the truth: while we’re seeing price adjustments in certain areas and property types, especially for attached homes or those lingering longer on the market, there’s no major crash in sight. California remains one of the most desirable places to live, and while demand has cooled slightly due to interest rates, prices are holding steady—especially in sought-after areas like San Diego.
What This Means for You as a Buyer
Even with mortgage rates in the mid-to-high 6% range, the rise in inventory is bringing some buyers back into the market.
But before diving in, here's something I always recommend to my clients:
Get crystal clear on what matters most to you.
Don’t just scroll listings or get caught up in what's trending. Instead, root your search in clarity and intention—because that’s how you make a truly aligned move.
Clarity Before the Search: Your Free Guide
If buying a home is on your heart this year, I’ve created a simple, soulful tool to help guide you:
“Wants vs. Needs: The Smart Home Buyer’s Planner”
This free guide will help you:
Identify what you truly need in a home vs. what’s “nice to have”
Get clear on your non-negotiables so you don’t get lost in the noise
Prioritize your time, energy, and budget
Align your search with your lifestyle, values, and vision
Buying a home is more than a financial decision—it’s about finding your sanctuary. A place to rest, grow, and come home to yourself.
🧘🏽♀️ A More Mindful Way to Buy
As the market continues to shift and more inventory becomes available, this spring offers an opportunity for mindful buyers to step forward with intention.
There’s no pressure here. Just a gentle invitation to explore what’s next in a way that feels aligned with you.
If you’ve been asking yourself “Will home prices drop in California?”—know that the real question might be:
“Is now the right time for me?”
Let’s explore that together. Download the free guide, or reach out if you’re ready to talk through what makes sense for your journey.
