The California housing market slowed in September 2026, with existing home sales falling both month over month and year over year as higher mortgage rates weighed on activity. Despite softer sales, home prices remained resilient near the $900,000 mark, while inventory held relatively steady compared with August.
Key Highlights
- Existing home sales fell 3.4% month over month to an annualized rate of 260,410, down 6.5% year over year.
- Year-to-date sales remained 0.8% higher than 2025, despite September’s slowdown.
- The statewide median home price was $899,720, down just 0.2% from August but up 1.7% year over year.
- Sales declined year over year in four of the five major regions, with Southern California posting the largest decrease at 9.1%.
- The Central Coast was the only major region to record annual sales growth, increasing 4.4%.
- The Unsold Inventory Index held at 3.7 months, unchanged from August and slightly above 3.6 months a year earlier.
- Active listings increased 0.5% year over year, marking their first annual increase in eight months.
California’s housing market showed clear signs of cooling in September as higher borrowing costs contributed to slower sales activity. However, home values have remained relatively resilient, and inventory has increased only modestly, suggesting the market is adjusting gradually rather than experiencing a sharp shift in conditions.
Download the full September 2026 California Real Estate Market Report
Market data provided by the California Association of REALTORS® (C.A.R.)
