🏡 California Housing Market: A More Balanced Market Is Taking Shape
California’s housing market is showing signs of moderation as buyers continue to navigate high home prices and elevated mortgage rates. At the same time, inventory has improved from earlier in the year, giving some buyers more options.
📊 What the Latest Data Shows
According to the California Association of REALTORS®, existing single-family home sales reached a seasonally adjusted annual rate of 263,170 in July 2026.
That’s down 6.0% from June, but still 1.1% higher than July 2025. Year-to-date sales were also 1.8% above the same period last year.
The statewide median home price was $887,680, down 1.9% from June but still 0.3% higher than July 2025.
🏠 Inventory Is Improving — But Still Tight
California’s unsold inventory increased to 3.4 months in July, up from 3.1 months in June.
Active listings increased 2.9% from June, but were still 9.3% lower than a year earlier. That means buyers may have more choices than they did earlier in the year, but housing supply remains relatively limited in many areas.
📍 Local Markets Can Look Very Different
California isn’t one single housing market.
In July, the Central Valley had 3.4 months of inventory, while the San Francisco Bay Area had just 2.3 months. Homes in the Central Valley averaged about 26 days on the market, compared with 22 days in the Bay Area.
That means neighborhood-level conditions can vary significantly depending on location, price range, and property type.
💡 What This Means for Homeowners
For sellers: Pricing your property realistically and presenting it well can make a difference as buyers have more options to consider.
For buyers: Improved inventory may provide more opportunities to compare homes and negotiate, although affordability and mortgage rates remain important considerations.
🔎 Looking Ahead
California’s housing market continues to balance buyer demand, limited supply, home prices, and borrowing costs.
The market isn’t simply “hot” or “cold.” Conditions can vary considerably from one community to another.
For homeowners and prospective buyers, keeping an eye on your local market may be more useful than relying on statewide headlines.