California Real Estate Market: What Buyers and Sellers Should Know

California’s housing market continues to show a mix of slower price growth, elevated mortgage costs, and tight inventory as the market moves through 2026.

According to the California Association of REALTORS®, the statewide median home price declined 1.9% from June to July 2026, falling from $904,640 to $887,680. However, the median price remained 0.3% higher than July 2025, showing that prices have remained relatively stable despite affordability challenges.

What This Means for Buyers and Sellers

For buyers, softer month-to-month prices and increased inventory in some areas may create more opportunities to negotiate. However, mortgage rates remain an important factor in affordability.

For sellers, accurate pricing continues to be important. Buyers are becoming more selective, and homes that are competitively priced may have an advantage in a market where affordability remains a concern.

Market Snapshot

California’s housing market remains relatively tight despite some improvement in inventory.

In July 2026:

• The statewide median home price was $887,680
• Active listings were 9.3% lower than a year earlier
• The statewide unsold inventory index increased to 3.4 months
• The median time to sell a single-family home was 26 days
• The statewide sales-to-list-price ratio was 99.3%

The San Francisco Bay Area continued to have some of the tightest inventory in the state, while the Far North had the highest level of available supply among California’s major regions.

Buyer Behavior

Pending home sales declined 6.8% from June to July, but remained 1.0% higher than July 2025. C.A.R. also reported that mortgage rates averaged 6.54% in July, keeping borrowing costs elevated and continuing to influence buyer demand.

Looking Ahead

California’s housing market is likely to remain sensitive to mortgage rates, inventory levels, affordability, and local economic conditions. While prices have moderated, limited housing supply continues to provide support for home values in many areas.

For buyers, this may be a good time to carefully compare properties and negotiate where appropriate. Sellers should focus on realistic pricing and strong preparation to attract today’s more selective buyers.

Market conditions can vary significantly by city, county, and property type. Buyers and sellers should consult current local market data and a qualified real estate professional before making decisions.

Reliable Sources

• California Association of REALTORS® — California housing market statistics
• Freddie Mac — Mortgage rate data
• Local REALTOR® associations and MLS data for city- and county-level trends