California ‘home sales and prices rise.’ Where to find homes for as low as $270K

Are you looking to buy a home in California?

The state’s housing market “finished the homebuying season on a positive note in August,” with home sales rising from July and the median home price climbing back above $900,000, according to the California Association of Realtors.

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According to the California Association of Realtors’ Wednesday, Sept. 16, housing report, existing single-family home sales increased 2.4% from July. They were up 1.4% compared to August 2025.

Existing single-family home sales totaled 269,620 in August at a seasonally adjusted annualized rate.

In August, California’s median home price rose nearly 2% from July, putting it just below the state’s record high set earlier this year.

“Buyers remained engaged in August despite elevated borrowing costs, but the recent rise in mortgage rates and continued economic uncertainty could create some headwinds as we move into the fall,” California Association of Realtors President Tamara Suminski said in the report.

Despite higher housing costs, Suminski said, year-over-year increase in sales shows demand remains strong, particularly among buyers who are prepared to act “when the right home and opportunity come together.”

Here’s what to know about California home prices and mortgage rates — including where buyers can still find some of the state’s most affordable homes:

How much do homes cost in California?

California’s median home price climbed back above $900,000 in August, 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.

In August, the median price rose to $901,420, the latest housing report shows.

That was about 2% higher than July’s median and slightly higher than the $900,620 median recorded in August 2025.

What are current mortgage rates in California?

Higher mortgage rates remain a challenge for homebuyers, according to the California Association of Realtors.

While earlier forecasts from the California Association of Realtors projected that mortgage rates would remain below 6% in 2026, mortgage rates have since skyrocketed passed 7%.

Economic uncertainty and other factors have kept borrowing costs elevated for much of the year, according to real estate experts.

“The recent increase in mortgage rates adds another layer of uncertainty to California’s housing outlook, especially as the market moves beyond the peak homebuying season,” Jordan Levine, the California Association of Realtors’ senior vice president and chief economist, said in the housing report.

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According to the California Association of Realtors, the average rate for a 30-year fixed mortgage rose to 6.13% in April and 6.63% in May. Rates eased to about 6.5% in June before rising again to 6.63% in July.

In August, mortgage rates averaged 6.67%.

“While August showed that underlying demand remains present, pending sales softened and inventory is taking longer to clear, suggesting buyers are becoming more sensitive to changes in borrowing costs,” Levine said.

As of Friday, Sept. 18, Zillow listed the average 30-year fixed mortgage rate in California at about 7.38%.

“If the Federal Reserve decides to take a more restrictive path for the rest of the year, mortgage rates could remain elevated or move higher, further challenging affordability and weighing on market activity this fall,” Levine said.

Where can I find the most affordable homes in California?

California is known for having some of the highest home prices in the country — but buyers can still find homes at significantly lower prices in some parts of the state.

The most affordable counties are concentrated largely in Northern California, although several communities in the Central Valley also have median home prices below $400,000.

According to the August 2026 Home Sales and Price Report released Sept. 16, these 10 counties had median home prices below California’s statewide median of $901,420:

1. Lassen County — $270,000
2. Siskiyou County — $287,500
3. Lake County — $312,500
4. Tehama County — $340,000
5. Kings County — $386,490
6. Shasta County — $389,000
7. Tuolumne County — $389,000
8. Trinity County — $391,250
9. Tulare County — $400,000
10. Kern County — $400,500

Where are the most expensive California home prices?

According to the California Association of Realtors, the Bay Area continues to boast the most expensive home prices in the state, with the median price for a single-family home in the region hitting more than $1.2 million in August.

Here are the five most expensive California counties for home prices based on the August 2026 Home Sales and Price Report:

1. San Mateo County — $2,250,000
2. Santa Clara County — $1,900,000
3. San Francisco County — $1,875,000
4. Marin County — $1,650,000
5. Mono County — $1,465,500

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.