California’s housing market is leaning toward a buyer’s market, with major cities witnessing sellers outnumbering prospective homebuyers, according to a recent analysis by Redfin.
The analysis found that major California cities qualified as a buyer’s market in January, meaning there over 10% more sellers than buyers. It covered the 50 most populous U.S. metropolitan areas.
When sellers outnumber buyers, buyers typically hold the negotiating power because they have more options to choose from. Therefore, a market with more sellers than buyers is considered a buyer’s market.
Among the state’s biggest metros, Riverside saw the highest gap, with 56% more sellers than buyers, according to Redfin data. The city had 12,084 buyers compared to 18,802 sellers.
Similarly, Los Angeles recorded a 47% gap between sellers and buyers. The city had 14,995 buyers and 22,059 sellers.
With a 37% gap between sellers and buyers, Sacramento also qualified as a buyer’s market. The city had 5,417 buyers compared to 7,430 sellers.
Other California cities that also leaned toward buyers included San Jose (27% more sellers than buyers), Anaheim (26% gap), Oakland (25%), San Diego (20%), and San Francisco (13%).
Broader National Trends
The statewide trend reflects a broader national pattern, where inventory is higher than the number of house hunters.
At 159%, Miami recorded the highest gap between sellers and buyers. The city had only 7,673 buyers compared to 19,860 sellers.
Fort Lauderdale came in second place, with a 128% gap. There were 8,341 buyers and 19,030 sellers.
Securing the third spot, Austin recorded a 124% gap between sellers and buyers, with 7,558 buyers and 16,945 sellers.
Florida and Texas have built more homes than other states, according to Redfin. Florida is also grappling with intensifying natural disasters, rising insurance premiums and soaring condominium HOA fees, prompting some homeowners to leave.
Only five metros were identified as seller’s market in January. These included Newark, Nassau County, Milwaukee, Montgomery County, and New Brunswick.
Nationwide, the number of house hunters in the market slipped 1% month-over-month and 8% year-over-year in January to around 1.36 million, the lowest level on record.
The number of sellers fell 1% month-over-month to 1.96 million, the sharpest decline since June 2023 and the lowest level since February 2025.
Redfin attributed the high inventory of homes to steep home prices and mortgage rates, layoffs, and mounting economic and political uncertainty. Winter storms that swept much of the country in January also dampened sales.
Redfin’s Methodology
The data was estimated using proprietary Redfin information on the typical time from a buyer’s first tour to close of purchase, along with MLS data on active listings and pending sales.
The estimated number of sellers means the number of active listings in the MLS.
These estimates and the median-sale price data in the report were seasonally adjusted, subject to revision.
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