California Home Prices Hit Record High as Sales Rise Amid Tight Supply

Event summary

  • California's median home price reached a record high of $930,260 in May 2026, up 3.1% year-over-year.
  • Home sales increased 5.1% year-over-year to 268,810 units on a seasonally adjusted, annualized basis.
  • Sales of homes priced between $1 million and $2 million surged 8.2%, while sales above $2 million soared 8.5%.
  • Housing inventory remained tight, with the Unsold Inventory Index declining 10.5% year-over-year.
  • The median number of days to sell a home was 22 days, unchanged from a year ago.

The big picture

California's housing market continues to experience strong demand for higher-priced properties, driving median home prices to new records. The tight supply and rising prices highlight affordability challenges for middle-income buyers. The recent easing of geopolitical tensions may bring more buyers back into the market, but inventory constraints are likely to remain a challenge during the peak homebuying season.

What we're watching

Affordability Pressures
Whether middle-income buyers can sustain demand amid rising prices and tight supply.
Inventory Constraints
The pace at which housing supply can improve as geopolitical tensions ease.
Market Trends
How continued sales gains in the higher-priced segment will impact overall market stability.