Where can I find California homes for $250K? Prices are dropping, experts say

California home prices are among the highest in the nation — but there could be some relief on the horizon, according to real estate experts.

Read more Solano County supervisors push back on California Forever shipyard proposal

The latest report from the California Association of Realtors shows existing home sales fell in July, while the state’s median home price slipped below $900,000.

Existing, single-family home sales totaled 263,170 in July on a seasonally adjusted annualized rate. That was 6% lower than June but 1.1% higher than July 2025, according to the California Association of Realtors.

“California’s housing market pulled back last month as mortgage rates remained elevated and briefly reached a 12-month high in recent weeks,” California Association of Realtors President Tamara Suminski said in the Aug. 17 housing report.

However, Suminski said, improving housing inventory and a recent decline in mortgage rates could give buyers more options as the market moves into the slower fall season.

Here’s what to know:

What are current mortgage rates in California?

While mortgage rates have recently declined, they remain well above what many housing experts had hoped to see this year.

Earlier forecasts from the California Association of Realtors projected that mortgage rates would remain below 6% in 2026.

Instead, economic uncertainty and geopolitical tensions have pushed mortgage rates passed 6%.

“July’s housing market performance reflected the ongoing challenges under the current economic and lending environment, but the market continues to show signs of resilience,” Jordan Levine, the California Association of Realtors’ senior vice president and chief economist, said in the housing report.

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.

“Higher mortgage rates and financial market volatility in the past two months weighed on buyer demand, resulting in softer sales activity and subdued price growth in July,” Levine said.

According to Zillow, the average 30-year fixed mortgage rate in California was about 6.75%, as of Monday, Aug. 24.

Read more Local special taxes face raised bar for endorsement under compromise on ballot

“While broader economic concerns and affordability constraints will remain headwinds in the near-term, moderations in rates could help stabilize demand, and market conditions could improve in the months ahead if geopolitical tensions ease further,” Levine said.

How much are home prices in California?

According to the California Association of Realtors, the statewide median home price fell below $900,000 in July.

California home prices previously hit a “record-breaking price” of $930,260 in May.

The latest report from the California Association of Realtors shows the statewide median home price fell to $887,680 in July.

That is about a 2% drop from June’s price of $904,640 but 0.3% higher than $885,180 in July 2025.

Which California counties have affordable home prices?

Despite California housing some of the most expensive home prices in the country, buyers can still find costs as low as $250,000 in California.

While the most affordable home prices in the state can primarily be found in Northern California, home prices across some cities in the Valley remain below $400,000.

Based on the July 2026 Home Sales and Price Report released Aug. 17, these 10 counties had median home prices below the statewide median of $887,680:

1. Trinity County — $250,000
2. Lassen County — $266,750
3. Lake County — $310,250
4. Tehama County — $324,000
5. Glenn County — $330,000
6. Siskiyou County — $332,500
7. Mariposa County — $375,000
8. Tuolumne County — $385,000
9. Kings County — $385,000
10. Shasta County — $400,000

Which California counties have the most expensive home prices?

The Bay Area is home to the most expensive home prices in California.

According to the California Association of Realtors, the median price for a single-family home in the Bay Area region hit about $1.3 million in July.

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

1. San Mateo County — $2,210,000
2. San Francisco County — $2,050,000
3. Santa Clara County — $1,955,000
4. Marin County — $1,770,000
5. Orange County — $1,475,000

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.