As we head into September, California’s housing market continues to evolve. Recent numbers show a market that remains active while giving buyers more to consider as they weigh their options. From home prices and inventory to mortgage rates, here’s a look at some of the latest trends shaping the market.
Home Sales Remain Ahead of Last Year
California existing single-family home sales slowed in July following a stronger June, but remained 1.1% above July 2025 levels. Year-to-date sales were also up 1.8% compared with the same period last year, showing continued activity despite affordability challenges facing today’s buyers.
Home Prices Show Signs of Moderation
The statewide median price for an existing single-family home was $887,680 in July, down 1.9% from June but slightly above the same time last year. While home values remain strong overall, slower price growth may provide some welcome breathing room for buyers who have been watching the market.
Inventory Offers Buyers More Choices
Housing inventory improved from June to July, with California’s Unsold Inventory Index increasing from 3.1 months to 3.4 months. While the number of active listings remains lower than a year ago, the month-to-month increase means some buyers may have a little more selection as they search for the right home.
Mortgage Rates Remain an Important Factor
Mortgage rates continue to play a major role in purchasing decisions. As of August 20, the average rate for a 30-year fixed mortgage was 6.65%, according to Freddie Mac. Even small movements in rates can make a difference in monthly payments, making it important for buyers to understand their financing options and overall budget.
Looking Ahead
The California housing market continues to balance affordability challenges with steady buyer demand and changing inventory. For those considering a move, staying informed and focusing on long-term needs can help make the homebuying process easier to navigate. As market conditions change, new opportunities may emerge for buyers ready to find a home that fits their lifestyle.