California's housing market in 2025 shows rising home prices with a median of $910,160, up 0.7% year-over-year, while sales are slightly down. Inventory is increasing, leading to a more balanced market where sellers still hold an edge but buyers have more options. Mortgage rates remain high around 6.7%, impacting affordability. Forecasts predict a 10.5% sales increase and 4.6% price growth in 2025, with affordability challenges persisting.