2025 California Housing Forecast: Rising Prices & Affordable Loan Options

[Ken and Ari Walker]

The California housing market is poised for an eventful year in 2025. According to the California Association of Realtors (C.A.R.), home prices are expected to rise as more buyers and sellers re-enter the market, encouraged by lower interest rates and improved housing inventory.

2025 Housing Market Projections:

• Increased Home Sales: Existing single-family home sales are forecast to reach 304,400 units, a 5% increase from 2024’s estimated 275,400 units.
• Higher Home Prices: The median home price in California is projected to climb 6% to $909,400 in 2025, following a 6.8% increase in 2024.
• Stable Housing Affordability: Housing affordability is expected to hold steady at 16% in 2025 after declining slightly in previous years.

What This Means for Buyers, Sellers, and Investors

While inventory levels are expected to improve, the increase in active listings will likely be modest. Homeowners and investors who delayed selling are expected to list their properties as interest rates drop and prices rise. However, growing demand will continue to create competition, pushing prices higher despite a more favorable housing supply.

Let’s Make 2025 Your Best Year Yet!

Don’t let financing challenges hold your clients back. With our Private Money Loan programs, we specialize in helping California Buyers and Borrowers secure funding for purchases, refinances, bridge loans, and more—especially when traditional financing isn’t an option.

👉 Call us today at 707-708-0797 or visit our website to learn how our fast approvals, flexible terms, and creative funding solutions can help you close more deals in 2025.

Let us be your trusted partner for alternative financing solutions!

Ken & Ari Walker

Husband & Wife Team
Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401
Ken: CA DRE Broker #01858042 / NMLS #1221130
Ari: CA DRE #01858152 / NMLS #2170867

Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!