Should I Sell My House in California Now or Wait?
Should I sell my house in California? Read on to learn how to time your sale perfectly and when to wait for maximum gains.
With the California housing market shifting and home sale growth being sluggish, you might wonder, “Should I sell my house in California?” Is now a good time to sell a home?
While the housing market may not be as robust as it was in recent years, there are opportunities for home sellers and clear ways to assess if the time is right for you.
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While it’s true that people are leaving parts of the Golden State, they’re not leaving California altogether, says veteran Oceanside and San Diego real estate agent Joseph Arendsen, who sells homes 65% quicker than the average agent in the market.
“We’re seeing a lot of people relocating from the Bay area and from L.A., seeking slightly better pricing, better weather, less traffic, and maybe a little better lifestyle,” he says.
Whether you have a life change on the horizon, or you’re pondering a move to another part of the state or the country, we’ll walk you through what to consider when making decisions about selling a house in California.
When to sell your California home
Typically, you should consider selling your California home if the circumstances provide favorable selling scenarios. The right situations might include:
If mortgage interest rates are low
Historically, sellers have found the greatest success when interest rates are low, and more buyers are on the hunt. At the end of January, the 30-year, fixed mortgage rate averaged 6.96%, up from 6.69% in the same period last year.
The California Association of Realtors (CAR) is optimistic that a favorable interest rate environment will reenergize buyers (and sellers), driving renewed activity in the market in 2025.
It says, “The average 30-year, fixed mortgage interest rate will decline from 6.6% in 2024 to 5.9% in 2025. While next year’s projected average for the 30-year fixed mortgage interest rate will be higher than the levels observed in the few years prior to the pandemic, it will still be lower than the long-run average of nearly 8% in the past 50 years.”
If California housing inventory is low
When supply is low and demand is high, selling your home can be far more profitable. Yet the state’s inventory varies widely.
The Unsold Inventory Index (UII) indicates how many months it would take to sell the current supply of homes at the current sales pace. CAR’s latest report showed that the index was 2.7 months in December 2024, down from 3.3 months in November but up from 2.6 months in December 2023.
While several counties experienced an increase in the number of properties compared to last year, others saw a decline, including San Mateo, San Benito, and Lassen counties. According to the California Association of Realtors (CAR), Southern California could face potential supply challenges in the coming months due to the impact of recent wildfire incidents. However, CAR says conditions may stabilize and lead to improvements in housing supply during the second half of 2025.
The varying trends across counties and regions underscore the importance of analyzing local market patterns to determine if selling makes sense in your area. Nevertheless, if the hand of change is knocking at your life’s front door, such as a new job, a family medical crisis, or a divorce, selling your home may be unavoidable.
If your California property value has significantly increased
If you have lived in your current California home a long time, or if property values in your neighborhood have increased to the point where you have earned a significant amount of home equity, now might be a good time to sell your California home and cash out.
Obviously, this depends on your local market. Statewide, the median home price in December was $861,020, up 1.0 percent from November and up 5.0 percent from $819,820 in December 2023. CAR predicts that home prices will maintain year-over-year growth in the low single digits during the first quarter of 2025, ahead of the start of the spring homebuying season.
Curious about your home’s current value? Answer simple questions about your property and its condition, and HomeLight’s free Home Value Estimator tool will give you a preliminary estimate based on housing market data from multiple trusted sources.
If you are ready to downsize your California home
For many older Californians, downsizing may be more than a desire. It may be a necessity, either for financial, mobility, or other health reasons. If maintaining your home has become difficult, now might be a good time to sell.
If you need to upsize your California home
Likewise, you might need more room because your family is growing. Or maybe an elderly relative or child must come to live with you in California. Maybe your employment changed and you need a home office. The need to upsize can play a big role in your decision to sell now.
If you’re selling a second or inherited home in California
The current market conditions might be ideal for a seller who also isn’t trying to buy a home, just reaping the benefits of an investment in real estate or selling an inherited property.
