California home sales fell in September from both August and a year earlier, while the statewide median price was nearly unchanged. Rising mortgage rates are slowing deals but have not yet pushed prices down, according to the California Association of Realtors.
Existing single-family home sales ran at a seasonally adjusted annualized pace of 260,410 in September, C.A.R. reported on Oct. 19, 2026. That was down 3.4% from 269,620 in August and 6.5% from 278,540 in September 2025. The statewide median price was $899,720, down 0.2% from August’s $901,420 and up 1.7% from a year earlier.
California home sales: the September numbers
- Sales pace: 260,410 annualized, down 3.4% month over month and 6.5% year over year. Year-to-date sales were still up 0.8%.
- Median price: $899,720, the fifth straight month of year-over-year gains.
- Price per square foot: $434, up 1.4% from August and 1.6% from a year earlier.
- Million-dollar share: 35.9% of sales, up from 35.2% in August, ending three straight monthly declines.
- Unsold Inventory Index: 3.7 months, unchanged from August and up from 3.6 months a year earlier.
- Active listings: up 2.7% from August and 0.5% from a year earlier, the first annual increase in eight months.
- Median time to sell: 29 days, compared with 28 in August and 32 in September 2025.
- Sale-to-list price ratio: 98.8%, compared with 98.2% a year earlier.
Statewide sales have now been below 300,000 for 48 straight months, a stretch C.A.R. said underscores “the market’s continued struggle to build sustainable momentum.”
Rates moved against buyers
The association tied September’s slowdown to borrowing costs. Using Freddie Mac weekly survey data, it calculated that the 30-year fixed rate averaged 6.86% in September, up from 6.67% in August and 6.35% a year earlier. It said rates “have been increasing sharply since the end of August.”
That is above the rate path behind the association’s own outlook. C.A.R.’s 2027 forecast called for a 3.7% sales gain on a 6.6% average mortgage rate.
C.A.R. Chief Economist Jordan Levine said more weakness may be coming. “September’s decline in pending sales suggests that California could see further softening in closed transactions in the coming months,” he said. “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. These competing forces suggest that slower sales may not translate into a comparable decline in prices in the near term.”
The association said the rise in active listings came mainly from fewer sales and the usual seasonal slowdown, “rather than a meaningful increase in new listings surfacing on the market.” Owners holding low-rate mortgages are still staying put.
Why the median held up
The statewide median fell only 0.2% from August. C.A.R. said that was well short of the 1.8% decline that is typical between August and September. Part of the reason is the mix of homes that sold: a larger share of million-dollar homes lifted the median even as overall demand weakened. C.A.R. still expects “more downward pressure on home prices for the remainder of the year” as demand softens and the seasonal slowdown sets in.
C.A.R. President Tamara Suminski, a Southern California broker, said the slower pace gives buyers room to negotiate. “As we move into fall, the market feels a little less rushed, giving buyers more time to carefully consider their options,” she said. “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.”
California’s mix of falling sales and steady prices is a state-level version of the national picture. Realtor.com data released the same day showed buyers gaining leverage in two-thirds of large metros even as higher rates cut into their purchasing power.
Regions: Southern California fell most from a year ago
Sales were below year-earlier levels in four of C.A.R.’s five major regions:
- Southern California: down 9.1%
- Far North: down 9.0%
- San Francisco Bay Area: down 3.1%
- Central Valley: down 2.5%
- Central Coast: up 4.4%, the only region with a gain
From August to September, the picture was more mixed. Sales rose 6.0% on the Central Coast and 4.9% in the Bay Area, fell 11.8% in the Far North and 3.4% in the Central Valley, and slipped 0.2% in Southern California.
Prices followed a similar split. The Central Coast median rose 4.4% from a year earlier to $1,049,500, Southern California’s rose 3.0% to $895,000 and the Bay Area’s rose 1.9% to $1,325,000. The Far North was the only region with an annual decline, down 3.4% to $377,150. In the Bay Area, San Francisco’s median reached $2,054,000, up 17.4% from a year earlier, and San Mateo’s was $2,327,500, up 8.3%.
Among large Southern California counties, sales fell 10.9% from a year earlier in Los Angeles County, 12.2% in San Diego County and 12.7% in Riverside County, based on C.A.R.’s county figures, which are not seasonally adjusted. Los Angeles County’s median rose 1.2% to $994,670, and San Diego’s rose 6.1% to $1,050,000. Statewide, 33 of the 53 counties C.A.R. tracks posted annual sales declines. The association cautioned that large swings in small counties often reflect low transaction counts.
Condominium and townhome sales fell 7.5% from a year earlier, and their $640,000 median was down 1.5%. Condos were also taking longer to sell, with a 4.8-month Unsold Inventory Index and a 39-day median time on market. More state and metro coverage is on our Housing Market page.
