The California housing market in May 2026 showed continued momentum, with home sales posting their strongest year-over-year gain in eight months. At the same time, median home prices reached a new record high, reflecting sustained demand alongside still-constrained inventory levels.
Key Highlights
- Existing home sales increased 5.1% year over year, marking the strongest gain in 8 months
- Total sales reached 268,810 transactions in May
- Median home price hit a record $930,260 (+3.1% YoY, +2.3% MoM)
- Inventory remained tight at 3.4 months, down from 3.8 months last year
- Active listings reached the second-highest May level in six years, though growth is beginning to moderate
California’s housing market continues to demonstrate strong demand and price resilience, with rising sales and record-high pricing signaling ongoing buyer competition. While inventory has improved slightly, supply remains constrained, suggesting competitive conditions are likely to persist through summer months.
Download the full May 2026 California Real Estate Market Report
