California home prices hit ‘another historic high.’ Where to find cheaper costs
California home prices have climbed to yet “another historic high,” according to real estate experts.
This marks the second straight month of record highs as the state’s housing market sees “intensifying competition.”
The statewide median home price reached $930,260 in May.
That is an increase of 2.3% from April’s median of $909,410 and 3.1% from $902,040 in May 2025, according to a June 17 report from the California Association of Realtors.
The new figure comes just one month after California home prices hit a record in April.
“Housing supply has remained constrained in recent months as the lock-in effect continued to put many would-be sellers on the sidelines, intensifying competition and placing upward pressure on home prices,” Jordan Levine, the California Association of Realtors’ senior vice president and chief economist, said in the report.
As home prices rise across California, home sales have begun to show signs of slowing.
“California’s home sales softened in May as broader economic uncertainty continued to weigh on consumer confidence and homebuying sentiment,” California Association of Realtors President Tamara Suminski said.
Existing home sales totaled a seasonally adjusted annualized rate of 268,810 in May.
If you’re in the market for a new home in California, here’s where to find prices below the statewide median:
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Are California mortgage rates rising or dropping?
Mortgage rates in California have moved higher in recent months, even after the California Association of Realtors had projected they would stay below 6% in 2026.
According to real estate experts, global instability — including tensions in the Middle East — helped push average 30-year fixed mortgage rates to 6.13% in April and 6.63% in May.
However, there are signs that rates could start easing.
As tensions abroad have cooled, the average rate for a 30-year fixed mortgage in California dropped to about 6.5%, as of Monday, June 22, according to Zillow.
“While the statewide median price typically reaches its seasonal peak in May, the recent easing of tensions in the Middle East could bring more buyers back into the market and keep price pressures up at the start of the third quarter,” Levine said.
That drop in mortgage rates could offer a small boost to the housing market in the months ahead.
“The recent easing in mortgage rates is an encouraging development, and if that trend continues, it could help bring more buyers and sellers back into the market and support a gradual improvement in housing conditions beginning in the third quarter,” Suminski said.
Where can I find the most affordable home prices in California?
Despite the statewide median home price reaching a new record high of $930,260, homebuyers can still find prices as low as $280,000 in California.
According to the latest report from the California Association of Realtors, the most affordable home prices in the state can primarily be found in Northern California, where the median price for a single-family home was $399,000 in May.
Based on the May 2026 Home Sales and Price Report released June 17, these 10 counties had median home prices below the statewide median of $930,260:
- Lassen County — $280,000
- Tehama County — $331,000
- Siskiyou County — $337,500
- Lake County — $365,000
- Kings County — $378,000
- Tulare County — $380,700
- Shasta County — $385,000
- Glenn County — $390,000
- Tuolumne County — $400,000
- Kern County — $412,000
Where do homes cost the most in California?
According to the California Association of Realtors, the Bay Area boasts some of the highest housing costs in the state.
The median price for a single-family home in the Bay Area was about $1.5 million in May, with prices for homes across the region reaching as high as $2.4 million.
The five counties with the highest median prices for existing single-family homes in May were:
- San Mateo County — $2,401,000
- San Francisco County — $2,200,000
- Santa Clara County — $2,100,100
- Marin County — $1,810,000
- Mono County — $1,725,000
What are home prices like 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 June 23, 2026 at 5:00 AM with the headline "California home prices hit ‘another historic high.’ Where to find cheaper costs."
