California home prices declined in 88% of the state’s major metro areas based on Zillow’s December year-over-year data, with 14 of 16 regions posting a drop from a year earlier.
In the Los Angeles–Orange County area, home values were down 1% from a year earlier. The decline was modest compared with recent gains: prices rose 4% in 2024, and surged 39% over the 2020–2023 period. Experts said the slip is not large, but it signals a small easing in a market where affordability has been a major burden for buyers.
The shift drew attention because until not long ago, price declines were rare across the state. Through March of last year, California recorded 14 straight months in which every metro area showed year-over-year price increases.
Other Southern California regions also posted year-over-year declines in December. The inland region fell 2%, after rising 3% in 2024 and jumping 49% over the prior four years. San Diego was down 2% in December, even though it gained 4% in 2024 and rose 51% from 2020–2023…