California housing to see stronger sales, rising prices in 2025

California's real estate market is expected to see a 10% increase in house sales in 2025, reaching 304,400 transactions, though it will still be one of the slowest years since the Reagan era. Median house prices are projected to rise nearly 5% to a record $909,400. Lower mortgage rates, anticipated to average 5.9%, may encourage more homeowners to sell. Despite increased inventory, prices are expected to continue rising due to ongoing demand and limited housing supply. The economy is forecasted to cool, with GDP growth slowing to 1.1%.