California Home Prices Cross $901,000 Mark in August
California's median home price reached $901,420 in August, marking a 1.6 percent monthly increase. This gain occurred despite 30-year mortgage rates averaging 6.67 percent.
California's median home price reached $901,420 in August. This represents a 1.6 percent increase from the previous month. The figure also shows a 0.1 percent gain compared to August 2025.
Existing single-family home sales totaled 269,620 on a seasonally adjusted annualized rate. This is a 2.4 percent rise from July's 263,320 units. Sales are also up 1.4 percent from the same period last year.
Mortgage Rates Remain Elevated
Thirty-year fixed mortgage rates averaged 6.67 percent in August. Rates have since climbed above 7.0 percent in early September. Borrowing costs are near a 20-month high.
High costs continue to suppress buyer activity. Statewide sales have stayed below the 300,000-unit benchmark for 47 consecutive months. Demand may soften as the homebuying season ends.
Price Trends Show Mixed Signals
The median price per square foot fell 1.4 percent from July to $428. It rose 0.2 percent from a year earlier. This suggests price growth is modest rather than driven by luxury sales.
Million-dollar home sales dropped to 35.2 percent of the total. This follows a decline from 35.5 percent in July. The share of high-end sales has fallen for three straight months.
Market Outlook Faces Headwinds
Data from GN auto markets/housing: housing prices indicates sustained demand. However, pending sales have softened recently. Inventory is taking longer to clear in the current market.
Economic uncertainty adds pressure on prospective buyers. Affordability remains strained as rates stay high. Prices may face downward pressure through the winter.
