California Home Sales and Prices Rise in August Despite High Mortgage Rates
Event summary
- California home sales rose 2.4% month-over-month and 1.4% year-over-year in August 2026, reaching 269,620 units on a seasonally adjusted annualized rate.
- The statewide median home price increased 1.6% from July to $901,420, marking a fourth consecutive annual gain.
- Mortgage rates averaged 6.67% in August, climbing to over 7.0% in early September, adding pressure to affordability.
- The Unsold Inventory Index rose 8.8% from July to 3.7 months, indicating softened demand.
- Sales declined in most major regions, with the Far North being the exception with a 15.0% annual gain.
The big picture
California's housing market showed resilience in August with sales and price gains, but high mortgage rates and economic uncertainty pose challenges. The market's ability to sustain momentum will depend on whether buyers can adapt to elevated borrowing costs. Regional disparities highlight varying market conditions across the state, with some areas showing stronger demand than others.
What we're watching
- Mortgage Rate Impact
- How sustained high mortgage rates will affect housing demand and affordability in the coming months.
- Regional Disparities
- Whether the Far North's sales surge indicates broader market shifts or localized anomalies.
- Inventory Dynamics
- The pace at which housing supply adjusts as demand softens and competition moderates.