The California housing market cooled slightly in July 2026, with sales pulling back from June’s rebound and home prices dipping below $900,000 for the first time in four months. Despite the monthly slowdown, sales remained above year-ago levels for the fourth consecutive month, signaling continued market resilience.
Key Highlights
- Existing home sales totaled 263,170, down 6.0% month over month but up 1.1% year over year.
- Year-to-date sales are up 1.8% compared to the same period in 2025.
- The statewide median home price declined to $887,680, down 1.9% from June, but remained 0.3% higher than last year.
- Southern California accounted for 43% of statewide sales activity, followed by the Central Valley (23%) and Bay Area (21%).
- The Central Coast posted the strongest annual sales growth (+11.1%), while the Central Valley grew 2.9%.
- Housing inventory increased to 3.4% months of supply, up from 3.1 months in June, but remained tighter than a year ago.
- Active listings rose 2.9% month over month but were still down 9.3% year over year, marking the sixth consecutive month of annual declines.
While California’s housing market lost some momentum in July, underlying demand remains relatively stable as sales continue to outperform year-ago levels. Inventory has loosened modestly from June, but supply remains constrained compared to last year, helping support home values despite recent price moderation.
Download the full July 2026 California Real Estate Market Report
Market data provided by the California Association of REALTORS® (C.A.R.)
