California's housing market slowed in September as higher mortgage rates and affordability challenges continued to affect homebuyers. But does slower activity mean home prices are dropping?
According to the California Association of REALTORS® (C.A.R.), home sales declined while statewide prices remained relatively stable. Here's a closer look at what happened and what it could mean for buyers and sellers.
California Housing Market at a Glance
In September 2026:
Median home price: $899,720, up 1.7% from September 2025.
Home sales: Down 6.5% compared with a year ago.
Average 30-year fixed mortgage rate: 6.86%.
Housing inventory: 3.7 months of supply.
Median days on market: 29 days.
Although fewer homes sold, prices remained higher than a year earlier. This suggests that California's housing market is slowing, but it is not experiencing a broad statewide price decline.
What's Happening in Southern California?
The housing market looks different depending on where you live.
Los Angeles County
Median home price: $994,670
Year-over-year price change: +1.2%
Year-over-year sales change: -10.9%
Riverside County
Median home price: $620,000
Year-over-year price change: -0.6%
Year-over-year sales change: -12.7%
San Bernardino County
Median home price: $531,090
Year-over-year price change: +6.2%
Year-over-year sales change: -6.0%
These numbers show why it's important to look beyond statewide headlines. Even neighboring counties can experience different price trends.
What Does This Mean for Homebuyers?
For buyers, a slower market may create opportunities.
With fewer transactions and some homes taking longer to sell, buyers may have more time to compare properties, review their options, and negotiate.
However, mortgage rates remain an important factor in affordability. Before making an offer, buyers should understand their monthly payment, financing options, and long-term plans.
The right home is not necessarily the one with the biggest price reduction. It's the one that fits your needs and financial situation.
What Does This Mean for Home Sellers?
For sellers, pricing and preparation are becoming increasingly important.
Buyers have more information and are paying close attention to property condition, location, and value.
A home priced appropriately for its neighborhood may still attract strong interest, while an overpriced property could sit on the market longer.
Before listing, it's important to review recent comparable sales, competing listings, and current buyer activity.
My Perspective: Real Estate Is Local
As a Realtor serving the San Gabriel Valley and surrounding communities, I believe one of the most important things to remember is that California's housing market is not one single market.
What happens in Arcadia may be different from Pasadena, San Gabriel, Temple City, or Rancho Cucamonga.
Even within the same city, home prices and buyer demand can vary depending on the neighborhood, school district, property condition, and available inventory.
Instead of trying to predict the perfect time to buy or sell, I encourage homeowners and buyers to focus on their individual goals and local market conditions.
Thinking about buying or selling a home?
I'd be happy to help you understand what's happening in your neighborhood and explore your options.
Amy Lin | REALTOR®
Your Local Realtor
626.887.9131
Source & Disclaimer
Data Source: California Association of REALTORS® (C.A.R.), September 2026 Home Sales and Price Report, released October 19, 2026.
Original report: https://www.car.org/aboutus/mediacenter/newsreleases/2026releases/sept2026sales
This article is an independent summary and commentary based on publicly reported C.A.R. market statistics. It is not an official C.A.R. publication or endorsement.
Market data is provided for informational purposes only. Statewide and county-level statistics may not reflect conditions in individual neighborhoods or properties. Median price changes may also reflect differences in the types of homes sold. Buyers and sellers should consult qualified professionals regarding their individual circumstances.
Source: California Association of REALTORS® (C.A.R.), September 2026 Housing Market Report.
Disclaimer: Market information is provided for informational purposes only. Local market conditions may vary.