Stockton, CA Housing Market Report

The Stockton housing market is currently undergoing a significant transition toward a buyer-friendly environment as of December 2025. With a median home value of $421,945, the market has seen a year-over-year decline of 4.03%. This cooling trend is further evidenced by the substantial increase in days on market, which has climbed to 72 days—an increase of 23 days compared to the previous year. While the sale-to-list ratio remains at a balanced 1.0, the growing active inventory of 1,328 units suggests that buyers now have more leverage and selection than they did during the post-pandemic surge.

Price trends over the last six months reveal a consistent, albeit slowing, downward trajectory. Since July 2025, values have dipped from $429,069 to the current December level, marking six consecutive months of depreciation. This correction is likely driven by a combination of higher borrowing costs and a natural stabilization following years of rapid appreciation in the Central Valley. Interestingly, while the for-sale market cools, the rental market remains resilient with a median rent of $1,989, representing a 2.72% annual increase. This divergence suggests that while homeownership demand is softening, the fundamental need for housing in the Stockton metro area remains robust.

Looking ahead, the Stockton market offers a strategic window for patient buyers who can capitalize on increased inventory and longer negotiation periods. Sellers must adjust their expectations, as the era of rapid bidding wars has largely subsided; pricing a home accurately from the start is now critical to avoid sitting on the market for several months. For investors, the rising rental rates paired with softening entry prices may present improved cap rates, though the overall economic outlook for San Joaquin County will play a pivotal role in whether prices find a floor in early 2026 or continue their gradual descent.