California home sales pull back in September as higher borrowing costs and affordability challenges constrain buyer demand, C.A.R. reports

• Existing, single-family home sales totaled 260,410 in September on a seasonally adjusted annualized rate, down 3.4 percent from 269,620 in August and down 6.5 percent from 278,540 in September 2025.
   
• September's statewide median home price was $899,720, down 0.2 percent from $901,420 in August and up 1.7 percent from $884,390 in September 2025.
   
• Year-to-date statewide home sales were up 0.8 percent in September.

SACRAMENTO, Calif., Oct. 19, 2026 /PRNewswire/ -- California home sales softened in September, both month over month and year over year, as rising mortgage rates and persistent affordability challenges weighed on buyer demand, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2026-09-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 260,410 in September, according to data collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. This annualized figure reflects the number of homes that would be sold in 2026 if September's sales pace continued throughout the year, with adjustments made for typical seasonal patterns. September sales were down 3.4 percent from 269,620 in August and down 6.5 percent from 278,540 in September 2025.

Statewide sales continued to stay below the 300,000-unit benchmark for the 48th consecutive month, underscoring the market's continued struggle to build sustainable momentum. Mortgage rates have been increasing sharply since the end of August, with the 30-year fixed mortgage rate (FRM) averaging 6.86 percent in September, up from 6.67 percent in August and 6.35 percent a year ago. Elevated borrowing costs and persistent affordability challenges could continue to weigh on homebuying activity through the final quarter of the year.

"As we move into fall, the market feels a little less rushed, giving buyers more time to carefully consider their options," said C.A.R. President Tamara Suminski, a Southern California broker and REALTOR^®. "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 statewide median home price remained relatively stable in September, edging down 0.2 percent from August to $899,720. The modest decline was smaller than the 1.8 percent average decrease typically observed between August and September, both historically and over the past 10 years. On a year-over-year basis, the median price increased 1.7 percent, marking the fifth consecutive month of annual gains. Despite September's relative price stability, the combination of softer housing demand and the typical seasonal slowdown will likely apply more downward pressure on home prices for the remainder of the year.

The share of million-dollar home sales increased to 35.9 percent in September from 35.2 percent in August, reversing three consecutive months of declines. At the same time, the statewide median price per square foot — a measure less affected by differences in property size and sales composition — rose 1.4 percent from August to $434 and increased 1.6 percent from a year earlier. Despite a pullback in demand due to economic uncertainty and higher mortgage rates, a bigger share of high-priced properties to total homes sold is affecting the statewide median price and keeping its monthly decline relatively stable for now.

"September's decline in pending sales suggests that California could see further softening in closed transactions in the coming months," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "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."

Other key points from C.A.R.'s September 2026 resale housing report include:

• At the regional level, home sales declined across most of California's major regions in September, with four of the five regions falling below their year-ago levels. Southern California recorded the largest annual decline at 9.1 percent, followed by the Far North (-9.0 percent), San Francisco Bay Area (-3.1 percent), and Central Valley (-2.5 percent). In contrast, the Central Coast was the only region to post a year-over-year increase, with sales rising 4.4 percent from last September. On a monthly basis, sales declined in two of the five regions, led by the Far North (-11.8 percent) and Central Valley (-3.4 percent), while the Central Coast (6.0 percent) and San Francisco Bay Area (4.9 percent) recorded solid gains. Southern California's sales remained essentially unchanged from August, edging down 0.2 percent.
   
• At the county level, 19 of the 53 counties tracked by C.A.R. recorded year-over-year sales gains in September, with nine posting double-digit increases. Trinity led all counties, recording a 60.0 percent sales increase, followed by Tehama (25.0 percent) and Monterey (22.3 percent). In contrast, 33 counties recorded annual sales declines, including 14 that fell 10 percent or more, while sales in Mendocino remained unchanged from a year ago. Sales in Imperial and Siskiyou both fell 33.3 percent and had the steepest decline last month, followed by Lassen (-30.0 percent) and Yolo (-22.0 percent). As is often the case in smaller counties, many of the outsized gains and losses could reflect low transaction volumes rather than meaningful shifts in underlying housing demand.
  
  
• Three of California's five major regions recorded year-over-year median home price gains in September, while one region was flat. The Central Coast led all regions with a 4.4 percent increase from a year earlier, followed by Southern California (3.0 percent) and the San Francisco Bay Area (1.9 percent). Meanwhile, the Far North was the only region to record an annual price decline, falling 3.4 percent, while prices in the Central Valley remained virtually unchanged from September 2025. On a monthly basis, price trends were mixed, with the San Francisco Bay Area posting the only increase (4.2 percent), while prices declined in the Far North (-3.0 percent), Central Coast (-2.4 percent), and Southern California (-0.6 percent). The Central Valley median price remained unchanged from August.
  
  
• Thirty-three of the 53 counties tracked by C.A.R. recorded year-over-year gains in their median home prices in September. Santa Barbara led all counties with a 32.6 percent price increase, followed by Mono (23.8 percent) and Trinity (19.0 percent). Meanwhile, median home prices remained unchanged from a year ago in Merced, Tulare, and Shasta, and 17 counties recorded annual declines. Mariposa posted the steepest decrease at 25.4 percent, followed by Lassen (-8.7 percent) and Del Norte (-8.5 percent). As is often the case in smaller counties, some of the outsized gains and declines likely reflected limited transaction volumes and shifts in the mix of homes sold rather than broad changes in underlying home values.
  
  
• Housing supply continued to improve in September as homes took longer to sell. The Unsold Inventory Index (UII) held steady at 3.7 months, unchanged from August and was slightly above the 3.6 months recorded in September 2025. The Index measures the number of months needed to sell the supply of homes on the market at the current sales rate.
   
• Total active listings increased 2.7 percent from the previous month and edged up 0.5 percent from a year ago, marking the first annual increase in eight months. The increase in active listings was due primarily to the pullback in sales attributed to rising rates and the seasonal slowdown in demand, rather than a meaningful increase in new listings surfacing on the market. With mortgage rates staying elevated, the lock-in effect continues to have an impact on the supply side of the market as potential home sellers remain on the sidelines.
  
  
• Active listings declined on a year-over-year basis in 27 of the 52 counties tracked by C.A.R. in September. Marin recorded the steepest decline, with active listings falling 32.1 percent from a year earlier, followed by Trinity (-32.1 percent) and Nevada (-21.3 percent). Meanwhile, 25 counties recorded year-over-year increases in active listings, led by Calaveras (45.3 percent), Sutter (27.6 percent), and Santa Clara (26.4 percent), while inventory in San Benito remained unchanged.
   
• The median number of days it took to sell a California single-family home was 29 days in September, down from 32 days in September 2025.
   
• C.A.R.'s statewide sales-price-to-list-price ratio* was 98.8 percent in September 2026 and 98.2 percent in September 2025.
   
• The statewide median price per square foot** for an existing single-family home was $434, up from $427 in September a year ago.
   
• The 30-year, fixed-mortgage interest rate averaged 6.86 percent in September, up from 6.35 percent in September 2025, according to C.A.R.'s calculations based on Freddie Mac's weekly mortgage survey data. 

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

Leading the way…® in California real estate for 120 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with nearly 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Sacramento.

September 2026 County Sales and Price Activity 
 (and condo sales data not seasonally adjusted)

r = revised
NA = not available

September 2026 County Unsold Inventory and Days on Market 
 (Regional and condo sales data not seasonally adjusted)

r = revised
NA = not available

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)