California Housing Market Shows Modest Price Growth as Inventory Remains Tight

California’s housing market remained relatively stable in August, with the statewide median price of an existing single-family home reaching $901,420, according to the latest report from the California Association of Realtors (C.A.R.). The August median was up 1.6% from July and just 0.1% higher than the same month last year.

Price Trends Vary Across California

Price performance differed considerably by region. Southern California recorded a 2.9% year-over-year increase in its median price, while the Central Valley and Far North each posted a 1.0% gain.

The San Francisco Bay Area, however, recorded a slight 0.2% decline, while the Central Coast fell 2.3% from a year earlier. At the county level, Santa Clara County’s median price was unchanged year over year in August.

These differences show that statewide statistics do not necessarily reflect conditions in individual cities or counties.

Inventory Remains Below Last Year’s Levels

Housing supply improved somewhat during August, although inventory remained below year-ago levels. California’s Unsold Inventory Index increased to 3.7 months, compared with 3.9 months in August 2025.

Active listings declined 6.2% from a year earlier, with listings below last year’s levels in 38 of the 53 counties tracked by C.A.R. At the same time, homes took a median of 28 days to sell, compared with 31 days in August 2025.

Buyer Activity Remains Steady but Affordability Is a Challenge

California home sales increased 1.4% from August 2025, reaching a seasonally adjusted annualized rate of 269,620 sales. However, sales remained below the 300,000-unit benchmark for the 47th consecutive month.

Mortgage rates also remained elevated, averaging 6.67% for a 30-year fixed-rate mortgage in August. Higher borrowing costs continue to affect affordability and may influence buyer demand as the market moves into the fall.

What California Residents Should Watch

The California market continues to vary significantly by location. Buyers may want to pay close attention to inventory, mortgage rates, and neighborhood-level pricing when evaluating a property. Sellers should also consider current comparable sales and the amount of competing inventory when pricing a home.

With statewide price growth remaining modest and inventory still below last year’s levels, local market conditions will be particularly important for homeowners and prospective buyers heading into the final months of 2026.