California home sales fall 6.5% in September as affordability challenges bite
Key Takeaway: California home sales fell to a 260,410 annualised rate in September, down 6.5 per cent from a year earlier, while the statewide median price eased to $899,720, the California Association of Realtors reported.
California home sales fell in September as higher borrowing costs and affordability challenges kept buyers on the sidelines, the California Association of Realtors reported. Sales of existing single-family homes dropped to a 260,410 annualised rate, down 3.4 per cent from August and 6.5 per cent from a year earlier.
The statewide median price eased to $899,720, down 0.2 per cent month on month but still up 1.7 per cent year on year. Sales have now run below the 300,000-unit benchmark for 48 consecutive months.
What the data show
The average 30-year fixed mortgage rate was 6.86 per cent in September, up from 6.35 per cent in August, while million-dollar homes made up 35.9 per cent of sales. Unsold inventory stood at 3.7 months, the median time on market was 29 days, and sellers achieved 98.8 per cent of list price.
Regionally, the San Francisco Bay Area median reached $1,325,000, up 4.2 per cent on the month, while Southern California’s median was $895,000. San Diego County’s median was $1,050,000, with county sales down 12.2 per cent year on year.
“Mortgage rates and affordability remain challenging, but with competition easing, well-prepared buyers may have more room to explore their options, negotiate and focus on finding the right home rather than simply hurrying to make an offer.”
Tamara Suminski, C.A.R. President
Why prices are holding
C.A.R. chief economist Jordan Levine pointed to further softening ahead for closed transactions in the coming months, citing September’s decline in pending sales.
Levine added that the mortgage rate lock-in effect continues to constrain new listings, while limited inventory is helping to cushion home prices against weaker demand, so slower sales may not translate into a comparable price decline near term.
“The mortgage rate lock-in effect continues to constrain new listings, while limited inventory is helping to cushion home prices against weaker demand.”
Jordan Levine, C.A.R. Senior Vice President and Chief Economist
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Sept sales (SAAR) | 260,410 (C.A.R., down 3.4% MoM, 6.5% YoY) |
| Median price | $899,720 (C.A.R., down 0.2% MoM, up 1.7% YoY) |
| 30-year fixed rate | 6.86% (C.A.R., Sept average (6.35% in Aug)) |
| Months below 300k benchmark | 48 (C.A.R.) |
| Unsold inventory | 3.7 months (C.A.R.) |
| Median days on market | 29 (C.A.R.) |
✓ Verified
• Sept 2026 sales: 260,410 SAAR, down 3.4% MoM and 6.5% YoY (C.A.R.).
• Median price $899,720, down 0.2% MoM and up 1.7% YoY (C.A.R.).
• Sales below the 300,000-unit benchmark for the 48th consecutive month (C.A.R.).
• Average 30-year fixed rate 6.86% in Sept vs 6.35% in Aug (C.A.R.).
• San Diego County: median $1,050,000; sales down 12.2% YoY (C.A.R.).
⚠ Still needs confirmation
• All figures are single-sourced to the C.A.R. September 2026 resale report (official industry data); independent outlet coverage was observed in listings but not read in full.
• Riverside County’s nearly 13% sales drop is from an NBC Palm Springs listing headline, not read in full.
Frequently Asked Questions
How far did California home sales fall in September?
To 260,410 (seasonally adjusted annualised rate), down 3.4% from August and 6.5% from a year earlier.
What is the statewide median home price?
$899,720, down 0.2% from August and up 1.7% from a year earlier.
Why are sales falling while prices hold?
Per C.A.R. chief economist Jordan Levine, the mortgage rate lock-in effect constrains listings while limited inventory cushions prices.
Which counties moved most?
San Diego County sales fell 12.2% year on year; Riverside County sales fell nearly 13%; Lassen County’s median was $237,500.
Editor’s note: All figures are from the C.A.R. September 2026 resale report, released Oct 19, 2026.
