Southern California Home Sales Drop 9.1% as Mortgage Rates Climb
Key Takeaway: California’s September home sales fell to 260,410 units, down 6.5% from a year earlier, as the 30-year mortgage rate climbed to 6.86%. Southern California posted the steepest regional decline at 9.1%.
California’s housing market cooled sharply in September as higher borrowing costs kept buyers on the sidelines. Statewide existing single-family home sales fell to 260,410 units, down 3.4% from August and 6.5% from a year earlier, the California Association of Realtors reported in data released Monday, October 19, 2026.
Sales remained below the 300,000-unit benchmark for the 48th consecutive month, reflecting long-term affordability pressures across the state.
Mortgage rates climb as affordability bites
The 30-year fixed mortgage rate averaged 6.86% in September, up from 6.67% in August and 6.35% in September 2025, according to Freddie Mac data compiled by C.A.R. and reported by Mortgage Professional America.
Only 19% of California households could afford the $916,750 median-priced home in the second quarter of 2026, requiring an income of $228,400 and a monthly payment of $5,710, Hoodline reported, citing the C.A.R. Traditional Housing Affordability Index.
“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, in the C.A.R. press release
County-by-county breakdown
Los Angeles County sales fell 10.9% from a year earlier but rose 5.4% from August, while Orange County sales declined 2% annually and 0.7% monthly, MyNewsLA reported. San Diego County sales dropped 12.2% annually and 6% monthly, with prices declining locally, ABC 10News reported.
County-level figures are not seasonally adjusted, meaning they do not account for typical calendar fluctuations.
Inventory and outlook
Active listings rose 2.7% monthly and 0.5% annually, the first annual increase in eight months, and the Unsold Inventory Index held at 3.7 months, Mortgage Professional America reported. The statewide sales-price-to-list-price ratio reached 98.8%, up from 98.2% a year earlier.
Year-to-date statewide sales through September 2026 remained 0.8% ahead of the same period in 2025.
“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. senior vice president and chief economist, via Mortgage Professional America
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Statewide September sales (seasonally adjusted) | 260,410 units: down 3.4% from August, 6.5% from September 2025 |
| 30-year fixed mortgage rate, September | 6.86% (August: 6.67%; September 2025: 6.35%) |
| Southern California annual sales change | Down 9.1%, the steepest regional decline |
| Statewide price, September | $899,720 (statewide median per C.A.R.; Hoodline labels it the average) |
| Months below 300,000-unit benchmark | 48 consecutive months |
| Year-to-date sales vs 2025 | 0.8% ahead |
| Share of sales over $1 million | 35.9% |
| Unsold Inventory Index | 3.7 months |
✓ Verified
The core figures in this article (260,410 September sales, the 9.1% Southern California decline, the 6.86% mortgage rate, the $899,720 price, and 48 months below the benchmark) were cross-checked across five outlets: Hoodline, MyNewsLA, ABC 10News, Mortgage Professional America, and the C.A.R. press release.
⚠ Still needs confirmation
The second-quarter 2026 affordability figures (19% of households able to afford a $916,750 median-priced home, requiring $228,400 income and a $5,710 monthly payment) come from Hoodline’s reporting of the C.A.R. Traditional Housing Affordability Index and have not been independently cross-checked against the original index.
Frequently Asked Questions
Who produced and released the data?
The figures were compiled and published by the California Association of Realtors in an official press release issued on October 19, 2026.
Are the county-level sales numbers adjusted for seasonal trends?
No. County-level figures are not seasonally adjusted, meaning they do not account for typical annual calendar fluctuations.
Did home prices fall uniformly across every region?
No. While the statewide figure slipped, Los Angeles County’s average rose from $946,950 to $994,670 and Orange County’s from $1.452 million to $1.48 million, while San Diego County saw price declines.
What is the outlook for the coming months?
C.A.R. chief economist Jordan Levine says September’s decline in pending sales points to further softening in closed transactions. The mortgage rate lock-in effect is constraining new listings while limited inventory cushions prices.
Editor’s note: This article is based on the California Association of Realtors’ September 2026 home sales release, cross-checked across five outlets. Hoodline’s additional context on Proposition 37 and a Zillow analysis was excluded because it was not independently verified.
