Want a home for $263,000? These CA spots have lowest housing prices, Realtors say
California home prices are dropping — but only slightly.
According to the California Association of Realtors’ May home sales and price report, the statewide median home price declined by 1.1%, following April’s record-breaking high of $910,160.
The median home price in May dropped to $908,000.
Home sales also slowed in California.
Sales of single-family homes in the state totaled 254,190 in May, which is a 5.1% decrease from April and a 4% drop compared to the previous year.
“California’s housing market continues to face headwinds as lingering tariff wars, ongoing economic uncertainty, and elevated mortgage interest rates undermined buyer confidence and dampened homebuyer demand in May,” the Realtors Group said in a news release on Wednesday, June 18.
If you’re in the market for a new home in California, here’s what you need to know about current mortgage rates, home values and where to find prices below the statewide median average.
What are current mortgage rates in California?
As of Friday, June 20, the average 30-year fixed mortgage rate in California was 6.94%, according to Zillow.
“With mortgage rates steadily increasing for three straight weeks since the beginning of May, mortgage demand softened further at the end of the month, despite rate improvements during the same time period,” the Realtors Group said in the release.
With 26% of consumers believing “now is a good time to buy” and mortgage rates expected to stabilize, the Realtors Group said, the housing market “could pick up again to turn around the buying season.”
Where can I find the most affordable home prices in California?
According to the California Association of Realtors’ May home sales and price report, the most affordable home prices can largely be found in Northern California and the Central Valley.
Heather Ozur, California Association of Realtors president, said “home prices are leveling off” and more homes are coming onto the market.
“Lower prices are making homes more affordable, and the growing inventory means buyers have more choices,” she said. “It’s a rare window where people can find their ideal home at a good value — making now an ideal time to buy.”
Which California counties have lowest housing prices?
Based on the May home sales and price report released on Wednesday, June 18, these 10 California counties had home prices below the state median of $908,000:
1. Lassen County
- Median sold price of existing single-family homes: $263,000
- Region: Northern California
2. Siskiyou County
- Median sold price of existing single-family homes: $299,500
- Region: Northern California
3. Trinity County
- Median sold price of existing single-family homes: $315,000
- Region: Northern California
4. Glenn County
- Median sold price of existing single-family homes: $350,000
- Region: Central Valley
5. Lake County
- Median sold price of existing single-family homes: $362,500
- Region: Northern California
6. Kings County
- Median sold price of existing single-family homes: $368,760
- Region: Central Valley
7. Imperial County
- Median sold price of existing single-family homes: $377,450
- Region: Southern California
8. Shasta County
- Median sold price of existing single-family homes: $380,000
- Region: Northern California
9. Tulare County
- Median sold price of existing single-family homes: $385,000
- Region: Central Valley
10. Tehama County
- Median sold price of existing single-family homes: $390,000
- Region: Northern California
Where are the most expensive homes in California?
According to the California Association of Realtors, the most expensive home prices in the state can be found in the Bay Area.
In May, the median sold price of a single-family home in the Bay Area averaged $1,400,000.
These five counties had the highest median sold prices for existing single-family homes, according to the most recent figures:
- San Mateo County — $2,200,000
- Santa Clara County — $2,171,125
- Marin County — $1,885,000
- San Francisco County — $1,801,000
- Santa Barbara County — $1,485,000
How much do homes cost in my California county?
Find the full list of home prices by county on the California Association of Realtors website.
Where are home values expected to decrease?
Home values in California are expected to drop in 2025, according to a recent Zillow forecast.
The real estate company had previously predicted a slight increase, but now expects prices to fall by 1.9% nationwide.
“The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year’s end,” Zillow said. “With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.”
In California, home values in one Mendocino County community were expected to decrease the most overall by next March, according to Zillow.
Home values in Ukiah are expected to drop about 9% from $480,126 to approximately $436,915 by March 2026, the real estate company said.
These are the top 10 metropolitan areas in the Golden State where Zillow predicts home values will drop the most between now and March 31, 2026:
- Ukiah: 9% decrease in home value
- Eureka: 7.3%
- Clearlake: 5.5%
- Chico: 5.4%
- San Francisco: 5.2%
- Santa Rosa: 5.2%
- San Jose: 4.8%
- Napa: 4.3%
- Truckee: 4.2%
- Vallejo: 4.2%
With a 9% decrease, home values in Ukiah will drop from $480,126 to approximately $436,915 by March 2026.
This story was originally published June 23, 2025 at 7:00 AM with the headline "Want a home for $263,000? These CA spots have lowest housing prices, Realtors say."
