Modesto, CA Housing Market Report

The Modesto real estate market is currently navigating a period of stabilization and increased inventory, shifting the landscape toward a more balanced environment for both buyers and sellers. As of December 2025, the median home value stands at $436,258, reflecting a slight year-over-year decrease of 1.19%. While the market remains competitive with a sale-to-list ratio of 1, meaning homes are generally selling for their asking price, the 13.21% surge in active inventory to 934 units provides buyers with significantly more options than they had a year ago.

Price trends over the latter half of 2025 indicate a cooling period followed by a late-year recovery. After reaching a peak in July, values dipped through October before rebounding in November and December. This volatility suggests that while the rapid appreciation seen in previous years has stalled, the market has found a firm floor. The increase in days on market to 48 days further supports the narrative of a cooling market where buyers are taking more time to evaluate their options rather than rushing into bidding wars.

Looking ahead, the Modesto market appears to be entering a phase of moderate growth and increased accessibility. Sellers should be prepared for longer listing periods and must price their homes accurately to the current market value, as the days of automatic over-asking offers have largely passed. For buyers, the combination of rising inventory and stabilizing prices offers a strategic window to enter the market with more leverage. However, with rents continuing to climb slightly to a median of $2,029, the long-term value proposition of homeownership in the Central Valley remains strong compared to the rental market.