By admin 
California’s housing market cooled in September, with existing home sales falling “as rising mortgage rates and persistent affordability challenges weighed on buyer demand,” according to the California Association of Realtors.
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Existing single-family home sales dropped 3.4% from August and 6.5% from September 2025, totaling 260,410 at a seasonally adjusted annualized rate, according to the California Association of Realtors’ September housing report released Monday, Oct. 19.
“As we move into fall, the market feels a little less rushed, giving buyers more time to carefully consider their options,” California Association of Realtors President Tamara Suminski said in the report.
Despite the slowdown, real estate experts said, California home prices remain high and elevated mortgage rates continue to make buying a home difficult for many.
Here’s what to know about California home prices, mortgage rates and where buyers can find more affordable homes:
What are current home prices in California?
California’s median home price was $899,720 in September, remaining just below $900,000, according to the California Association of Realtors.
The statewide median reached a “record-breaking price” of $930,260 in May before falling to $887,210 in July and rebounding to $901,420 in August.
September’s median price was down 0.2% from August as the housing market entered the slower fall home buying season.
Although prices have eased from their spring peak, experts said, affordability remains a major challenge for prospective buyers across the state.
What are current mortgage rates in California?
Mortgage rates remain a significant obstacle for homebuyers, according to the California Association of Realtors.
The association’s September report put the average mortgage rate at 6.86%, up from 6.67% in August and 6.35% a year earlier.
However, Zillow listed the average 30-year fixed mortgage rate in California at about 7.49%, as of Tuesday, Oct. 20.
Higher borrowing costs, combined with the state’s expensive housing market, continue to limit what many buyers can afford, the California Association of Realtors said. Economic uncertainty has also contributed to elevated rates.
“Mortgage rates and affordability remain challenging, but with competition easing, well-prepared buyers may have more room to explore their options, negotiate and focus on finding the right home rather than simply hurrying to make an offer,” Suminski said in the housing report.
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The slowdown in pending sales could also affect home sales in the coming months.
“September’s decline in pending sales suggests that California could see further softening in closed transactions in the coming months,” Jordan Levine, the California Association of Realtors’ senior vice president and chief economist, said in the housing report.
However, slower sales do not necessarily mean home prices will fall sharply. Limited inventory continues to support prices, even as buyer demand weakens.
“On the supply side, the mortgage rate lock-in effect continues to constrain new listings, while limited inventory is helping to cushion home prices against weaker demand,” Levine said. “These competing forces suggest that slower sales may not translate into a comparable decline in prices in the near term.”
Where can I find the most affordable homes in California?
Though California is known for having some of the highest home prices in the country, buyers can still find more affordable options in certain parts of the state.
Some of the state’s lower-priced housing markets are concentrated in Northern California, while several Central Valley communities also have median home prices below the statewide median of $899,720.
According to the California Association of Realtors’ September 2026 Home Sales and Price Report, released Oct. 19, the following 10 counties had median home prices below the statewide median:
- Lassen County — $237,500
- Trinity County — $250,000
- Tehama County — $309,000
- Siskiyou County — $315,000
- Mariposa County — $364,500
- Tulare County — $380,000
- Kings County — $381,300
- Shasta County — $385,000
- Lake County — $390,000
- Glenn County — $415,000
Where are the most expensive home prices in California?
Though some California counties have home prices as low as $237,500, other counties have home prices above $1 million.
According to the California Association of Realtors, the Bay Area continues to have the most expensive housing prices in the state.
In September, the region’s median price for a single-family home hit $1,325,000.
Based on the September 2026 Home Sales and Price Report, here are the five most expensive California counties for home prices:
- San Mateo County — $2,327,500
- San Francisco County — $2,054,000
- Santa Clara County — $1,920,000
- Marin County — $1,678,750
- Mono County — $1,547,500
What are housing costs like in my California county?
Find the full list of home prices by county on the California Association of Realtors website.
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