California homes for $216K? Where to find cheapest prices as mortgage rates drop
As tensions tied to the Iran war continue, housing experts say the California real estate market is starting to cool.
Rising energy costs and ongoing stock market instability have pushed many buyers and sellers into “hibernation mode,” according to the California Association of Realtors.
“March home sales were subdued, as higher mortgage rates and stock market volatility kept many buyers on the sidelines,” Tamara Suminski, California Association of Realtors president, said in a Tuesday, April 21, housing report.
Existing home sales fell to 265,320 in March based on a seasonally adjusted annualized rate, according to the group’s March Home Sales and Price Report.
That’s a 3.5% drop from February and down 2.5% compared to March 2025.
“As both geopolitical tension and interest rates ease for the third straight week, buyers and sellers who have been taking a wait-and-see strategy could return to the market if the conflict in the Middle East continues to stabilize,” Suminski said.
If you’re thinking about entering the California housing market, here’s what to know about current mortgage rates, average home prices and where to find the lowest-priced properties:
What are current California home prices?
According to the California Association of Realtors, the statewide median home price in March was $889,190.
That is about a 7% increase from February.
“As the market enters the spring homebuying season, prices are expected to climb, but lingering concerns about the Iran conflict and the risk of higher inflation may continue to constrain the pace of price growth in the months ahead,” the California Association of Realtors said.
What are current California mortgage rates?
Mortgage rates in California have eased slightly as the spring homebuying season ramps up, according to Jordan Levine, California Association of Realtors senior vice president and chief economist.
The average 30-year fixed mortgage rate in California was about 6.13%, as of Wednesday, April 22, according to Zillow.
That is down from 6.38% in March.
Despite the drop in mortgage rates, the housing inventory is limited.
“The number of homes listed on the market remains low compared to last year’s levels,” Levine said.
Housing inventory collected from Federal Reserve Economic Data shows there were about 60,521 active listings in March.
“Many homeowners locked in historically low mortgage rates are now reluctant to sell, limiting available inventory,” Levine said. “This supply/demand imbalance will likely cap sales in the coming months, even as affordability improves modestly.”
Where can I find lowest home prices in California?
Based on March home sales and the price report released April 21, these 10 counties had median home prices below the statewide average of $889,190:
- Lassen County — $216,000
- Trinity County — $308,850
- Tehama County — $312,450
- Lake County — $332,500
- Glenn County — $345,000
- Siskiyou County — $345,750
- Plumas County — $350,500
- Tuolumne County — $379,850
- Kings County — $399,000
- Tulare County — $400,000
While the most affordable homes in the state can primarily be found in Northern California, homebuyers can find affordable prices across the Central Valley as well, according to the latest report from the California Association of Realtors.
How expensive are single-family homes in California?
According to the California Association of Realtors, the Bay Area is home to the most expensive housing costs in the state.
The median price for a single-family home in the Bay Area reached $1,400,000 in March.
Based on the March 2026 home sales and price report, these five counties had the highest median prices for existing single-family homes:
- San Mateo County — $2,250,000
- Santa Clara County — $2,150,000
- San Francisco County — $2,150,000
- Marin County — $1,750,000
- Orange County — $1,467,500
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.
This story was originally published April 23, 2026 at 5:00 AM with the headline "California homes for $216K? Where to find cheapest prices as mortgage rates drop."
