California Real Estate: Is It a Buyer’s or Seller’s Market Right Now?
For a while, the California housing market—especially in high-demand regions like San Francisco and Redding—was red-hot for sellers. Homes were selling fast, with bidding wars becoming the norm. But recently, we’ve been seeing a shift. Some neighborhoods are still ultra-competitive, while others are seeing longer days on market and more room for negotiation.
In short: we’re no longer in a one-size-fits-all market. Whether you’re investing, buying your next home, or considering selling, understanding your local market conditions is key to making smart, strategic moves.
Buyer’s Market vs. Seller’s Market: What’s the Difference?
Let’s break it down:
Buyer’s Market: More homes are available than there are buyers. Properties tend to sit longer, prices may level out or dip, and buyers gain negotiating power (think: price cuts, seller concessions, or covering closing costs).
Seller’s Market: Demand outweighs supply. Homes sell quickly, prices climb, and sellers often receive multiple offers.
Right now in California, we’re seeing a balancing act. Some regions—particularly where new developments and inventory have increased—are showing signs of becoming buyer-friendly. In other areas, like parts of the Bay Area, low inventory is keeping competition high.
Why the Market Is Shifting
Inventory is one of the biggest drivers. In cities across California, we're noticing:
San Francisco: Inventory remains tighter, especially in desirable neighborhoods with access to transit, tech hubs, and luxury amenities. That keeps the edge slightly in favor of sellers—but with fewer bidding wars than we saw in 2021–2022.
According to data from Realtor.com and local MLS reports, California's inventory growth isn't uniform. The Central Valley and parts of Southern California are approaching pre-pandemic supply levels, giving buyers more leverage. Meanwhile, urban centers and coastal markets are slower to rebound in inventory, so pricing remains resilient.
What This Means for Investors and Homebuyers
Whether you’re eyeing a luxury condo in San Francisco or a multi-family property in Redding, it’s essential to understand what kind of market you're stepping into. Here’s how this balance can work in your favor:
For Buyers and Investors: You have more negotiating room than in previous years. This is a good time to explore price reductions, seller credits, or even creative financing. In less competitive neighborhoods, properties with long DOM (days on market) can offer excellent value.
For Sellers: While it’s no longer a frenzy, well-maintained and correctly priced homes—especially those with in-demand features like ADUs, home offices, or solar—are still attracting serious buyers. Proper pricing and presentation matter more than ever.
Local Expertise Is Your Best Advantage
Even with national headlines pointing toward a more “neutral” market, California’s real estate landscape is nuanced and highly localized. That’s why partnering with a real estate professional who knows the ins and outs of California neighborhoods—zoning changes, development pipelines, shifting buyer demand—is critical.
As Zillow put it:
“Agents are experts on their local markets and can craft buying or selling strategies tailored to local market conditions.”
Whether you’re exploring long-term investment potential, a new primary residence, or simply planning your next real estate move, understanding your market is the first step.
Let’s Strategize
Thinking of buying or selling? Curious how your neighborhood compares to others across the state? Let’s connect and talk about your goals—whether that’s building long-term wealth through real estate, relocating, or simply taking advantage of new opportunities in today’s evolving market.
What’s one thing you’re wondering about the California housing market right now? Let me know—I’m here to help you make informed decisions every step of the way.
