California Home Sales Cool in September Amid High Rates
Key Takeaway: California home sales fell to a 260,410-unit annual rate in September, down 6.5% from a year earlier, while the median price held at $899,720 as mortgage rates averaged 6.86%.
California existing home sales dipped in September as elevated mortgage rates and persistent affordability hurdles weighed on buyers, according to data released on Monday, 19 October 2026, by the California Association of Realtors. The seasonally adjusted annual rate of home sales reached 260,410 units, marking a 3.4% decline from August and a 6.5% drop compared to September 2025 figures.
Prices hold while sales slide
Statewide, the median home price edged down 0.2% month-on-month to $899,720, though this still represented a 1.7% increase from $884,390 recorded a year earlier. Sales continued to run below the crucial 300,000-unit benchmark for the 48th consecutive month, even as year-to-date sales managed a modest 0.8% gain, according to the association.
Borrowing costs remained a primary obstacle for prospective purchasers. Freddie Mac weekly survey data cited by the association showed that the 30-year fixed mortgage rate averaged 6.86% in September, rising from 6.67% in August and 6.35% a year ago. A separate report from Pasadena Now on Thursday, 8 October 2026, put the recent average 30-year rate at approximately 7.5%, the highest level in nearly three years, though this single-source reading remains unverified.
“As we move into fall, the market feels a little less rushed, giving buyers more time to carefully consider their options.”
Tamara Suminski, C.A.R. President, via the C.A.R. release
Inventory improves as regions diverge
Inventory metrics showed slight improvements across the state. The Unsold Inventory Index stood at 3.7 months, while the median time required to sell a home dropped to 29 days, down from 32 days in September 2025. Total active listings increased by 2.7% from August and 0.5% year-on-year, representing the first annual increase in eight months. Regional variations were pronounced, with Southern California posting the largest annual sales decline at 9.1%, while the Central Coast emerged as the only region to register a year-on-year sales gain, up 4.4%.
According to National Mortgage Professional on Tuesday, 20 October 2026, pending sales fell sharply by 16% in Los Angeles, 15.8% in San Diego, and 15.5% in Anaheim, though these single-source figures are currently unverified.
“September’s decline in pending sales suggests that California could see further softening in closed transactions in the coming months.”
Jordan Levine, C.A.R. chief economist, via the C.A.R. release
Key Story Metrics
| Figure | Reported Status |
|---|---|
| September sales (SAAR) | 260,410 units, down 3.4% MoM and 6.5% YoY |
| Median home price | $899,720, down 0.2% MoM, up 1.7% YoY |
| 30-year fixed rate (September average) | 6.86%, up from 6.67% in August and 6.35% a year ago |
| Months below the 300,000-unit benchmark | 48 consecutive months |
| Unsold Inventory Index | 3.7 months |
| Median days to sell | 29 days, down from 32 in September 2025 |
✓ Verified
The sales and price figures come from the California Association of Realtors release dated 19 October 2026, corroborated by National Mortgage Professional and Mortgage Professional America.
⚠ Still needs confirmation
Pasadena Now reported that the recent average 30-year rate reached approximately 7.5% and that consumer confidence fell to its lowest reading since 2014; these single-source readings have not been independently confirmed.
- C.A.R. via PR Newswire: California home sales pull back in September (19 Oct 2026)
- Pasadena Now: California housing market still stuck (8 Oct 2026)
- National Mortgage Professional: California home sales drop 6.5% (20 Oct 2026)
- Mortgage Professional America: California home sales fall amid mortgage rate spike (19 Oct 2026)
Editor’s note: The Pasadena house image is an illustrative file photo, not a property featured in the report.
