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California Real Estate Market: What to Expect in 2025?

Rupi Azrot
February 2, 2025
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Thinking about selling your home in 2025? You’re not alone. California’s real estate market is shifting, and if you’re planning to list, understanding the trends can help you make a smart move. Let’s break down what’s happening—without the confusing industry jargon.

Interest Rates: Still a Wild Card

Interest rates have been the talk of the town for the past couple of years. After hitting historic lows, they shot up in 2023, causing a slowdown in the market. In 2025, experts predict they’ll stabilize, but don’t expect them to drop to those pandemic-era lows anytime soon.

What does this mean for sellers? Buyers will be more cautious, which means pricing your home right is more important than ever. Overpricing could leave you sitting on the market longer than you’d like.

The Wildfire Insurance Crisis: A New Challenge for Sellers

If you’re selling in California, especially in wildfire-prone areas, you’ve probably heard about the homeowners insurance crisis. Major insurance companies are either pulling out or drastically raising rates, making it harder (and more expensive) for buyers to get coverage.

This is especially affecting markets in Riverside, San Diego, and parts of Los Angeles. Sellers need to be upfront about insurance costs and possibly even offer incentives to keep deals from falling apart.

Median Home Prices: Where Are We Now?

Home values in California are still strong, but some cities are feeling shifts. Here’s what median home prices look like right now:

  • Riverside: $630,000
  • Corona: $749,500
  • Los Angeles: $875,000
  • Irvine: $1,550,000
  • Long Beach: $825,854
  • San Diego: $930,000
  • Anaheim: $905,750

If you’re in a high-demand area like Irvine or San Diego, you’ll likely still see solid interest. But if you’re in a more price-sensitive market like Riverside, competitive pricing and good marketing will be key.

How Long Are Homes Sitting on the Market?

This is where things get interesting. Some cities are still moving fast, while others are seeing homes linger. Homes in Irvine and Anaheim tend to move quickly, while Riverside and Long Beach are seeing slightly longer listing times.

If you’re in a slower-moving market, getting your home on the MLS with a flat-fee MLS listing service can boost visibility without breaking the bank.

Selling Smart: Get Maximum Exposure Without Huge Fees

The biggest mistake sellers make? Paying way too much in commissions. With home prices this high, giving 5-6% to an agent can mean losing tens of thousands of dollars.

But here’s the secret: you don’t have to.
With ListLean’s flat fee MLS listing service, you can get your home in front of buyers for just $95—yes, really.
And if you want full agent support? The Elite Plan gives you everything a traditional agent offers, but for only 1% commission instead of 5-6%.

Selling your home doesn’t have to be complicated—or expensive. If you’re ready to list, check out ListLean’s plans and see how much you can save:
ListLean Pricing

Selling a home FSBO (For Sale By Owner) can be an attractive option for homeowners looking to save on realtor commissions and retain control over the selling process. However, navigating the complexities of a real estate transaction without professional guidance can be challenging. To help you avoid common pitfalls and achieve a successful sale, let's explore some of the top FSBO mistakes to avoid when selling your home.

1. Pricing it Wrong:

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2. Neglecting Legal Requirements:

Selling a home involves adhering to various legal requirements and disclosures. Failure to comply with state and local regulations can lead to legal issues and jeopardize the sale. Make sure you familiarize yourself with California's real estate laws, including disclosure requirements, contract terms, and any local ordinances that may affect the sale of your home.

3. Poor Marketing Strategy:

Effective marketing is essential for attracting potential buyers and generating interest in your property. Many FSBO sellers make the mistake of neglecting marketing efforts or relying solely on traditional methods such as yard signs and classified ads. Take advantage of online platforms, social media channels, and professional photography to showcase your home to a wider audience and maximize its exposure.

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FAQ’s

Frequently asked questions

What is the MLS?

The Multiple Listing Service, or MLS, is a database used by real estate brokers to share information about properties for sale by sellers they represent to brokers who represent potential buyers.

What is a Flat Fee MLS listing?

A Flat Fee MLS listing is a service that allows homeowners like you to list their property on the local MLS for a flat fee rather than paying a traditional real estate agent's commission, which is typically a percentage of the sale price.

How does a Flat Fee MLS listing work?

You pay a one-time fee to have your property listed on the MLS database. This fee usually covers the cost of listing your property on the MLS for a specified period, often ranging from 6 months to a year. You retain the right to sell your home FSBO and handle the selling process yourself.

Why can’t I edit my Zillow listing after my property goes live on the MLS?

Once your home is listed on the MLS, websites like Zillow, Redfin, and Realtor.com automatically pull your listing data directly from the MLS.

Because of this MLS connection, Zillow removes homeowner editing access to avoid conflicting information online. This is a Zillow policy that applies to any home listed through the MLS — regardless of which agent or company lists it.

You can read Zillow's official policy here:
https://www.zillow.com/c/about-linking-and-claiming-listings/

Am I signing a listing agreement with ListLean?

No, you are not signing a traditional listing agreement with us. ListLean does not represent you as an agent. Instead, you are signing an MLS Entry Agreement, which is required to list your property on the MLS while staying compliant with board and MLS regulations. This agreement allows us to post your listing but does not establish an agent-client relationship. You still remain a For Sale By Owner (FSBO) seller, maintaining full control over your sale.

Do I need to provide photos and descriptions for my listing?

Yes. Try to provide high-quality photos and a detailed description of your property for the MLS listing. Remember, you want to get the best price for your home, so clear, well-lit photos and an accurate (non-puffed) description will go a long way towards generating interest for your house. We offer professional photography for an extra $250 because we know first impressions are the only ones that matter online in the age of swiping left.

Can I change the listing price or details after it's posted on the MLS?

Absolutely! Just email us anytime at team@listlean.com for any updates, changes, or open house requests.

For Open Houses, please send us:

  • Property Address (in the email subject line)
  • Open House Day(s)
  • Start & End Time

We ask for at least 48 hours’ notice so we can update the MLS properly. Once updated, Zillow and other websites will reflect those changes automatically within 24-48 hours.

How do showings and negotiations work with a Flat Fee MLS listing?

As the FSBO homeowner, you'll be responsible for scheduling and conducting showings with potential buyers. When you receive offers, you'll negotiate directly with the buyer or their agent. It's advisable to seek legal counsel or hire a real estate attorney to review any offers or contracts to ensure they're in your best interest.

What happens if my property doesn't sell during the listing period?

If your property doesn't sell during the initial listing period, you may have the option to renew your Flat Fee MLS listing for an additional fee.

Is ListLean a Licensed Broker?

Absolutely. ListLean LLC operates under Offercity Brokerage Inc, holding California CalBRE #02185966. As a licensed broker, we’re authorized to list your home on local MLS databases throughout California.