California home sales and prices rise in August despite higher mortgage rates, housing costs, C.A.R. reports

• Existing, single-family home sales totaled 269,620 in August on a seasonally adjusted annualized rate, up 2.4 percent from 263,320 in July and up 1.4 percent from 265,780 in August 2025.
  
   
• August's statewide median home price was $901,420, up 1.6 percent from $887,210 in July and up from $900,620 in August 2025.
  
   
• Year-to-date statewide home sales were up 1.8 percent in August.

SACRAMENTO, Calif., Sept. 16, 2026 /PRNewswire/ -- California's housing market finished the homebuying season on a positive note in August, with sales and prices posting gains from both the previous month and last year despite continued pressure from high mortgage rates and housing costs, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2026-08-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 269,620 in August, according to data collected by C.A.R. from more than 90 local REALTOR^® associations and MLSs statewide. This annualized figure reflects the number of homes that would be sold in 2026 if August's sales pace continued throughout the year, with adjustments made for typical seasonal patterns. August sales were up 2.4 percent from 263,320 in July and up 1.4 percent from 265,780 in August 2025.

Statewide sales continued to stay below the 300,000-unit benchmark for the 47th consecutive month, underscoring the market's continued struggle to build sustainable momentum. Mortgage rates remained elevated in August with 30-year fixed mortgage rates (FRM) averaging 6.67 percent for the month. Since late August, mortgage rates have climbed sharply, with the average 30-year fixed rate surpassing 7.0 percent in the second week of September, according to Mortgage News Daily. As borrowing costs approach a 20-month high and the homebuying season winds down, housing demand may continue to soften in the months ahead.

"Buyers remained engaged in August despite elevated borrowing costs, but the recent rise in mortgage rates and continued economic uncertainty could create some headwinds as we move into the fall," said 2026 C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. "At the same time, year-over-year gains show that demand is still there, especially among buyers who are prepared to move when the right home and opportunity come together."

California's statewide median home price rebounded in August, rising above $900,000 after dipping below that threshold in July. The median price increased 1.6 percent from the prior month to $901,420, outpacing the typical July-to-August gain of 1.2 percent, though below the 10-year average increase of 2.2 percent. Compared with a year earlier, prices were up just 0.1 percent, marking a fourth consecutive annual gain. Looking ahead, home prices typically ease during the fall and winter months. With mortgage rates recently surging, affordability remains strained and housing demand could weaken further. As sales slow and competition moderates, home prices may face additional downward pressure through the end of the year.

The share of million-dollar home sales declined for the third straight month, slipping from 35.5 percent in July to 35.2 percent in August. Meanwhile, the statewide median price per square foot, a measure less influenced by property size and sales mix, fell 1.4 percent from July to $428 but was up 0.2 percent from a year earlier. Together, these trends suggest that August's increase in the statewide median price was not driven by a larger share of high-end sales and that underlying home price appreciation remains modest.

"The recent increase in mortgage rates adds another layer of uncertainty to California's housing outlook, especially as the market moves beyond the peak homebuying season. While August showed that underlying demand remains present, pending sales softened and inventory is taking longer to clear, suggesting buyers are becoming more sensitive to changes in borrowing costs," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "If the Federal Reserve decides to take a more restrictive path for the rest of the year, mortgage rates could remain elevated or move higher, further challenging affordability and weighing on market activity this fall."

Other key points from C.A.R.'s August 2026 resale housing report include:

• At the regional level, home sales softened across most of the state's major regions in August, with three of the five posting year-over-year declines. Sales fell 4.8 percent in Southern California, 4.2 percent in the San Francisco Bay Area, and 3.2 percent on the Central Coast. In contrast, the Central Valley recorded a modest 1.5 percent increase, while the Far North led the state with a 15.0 percent annual gain. On a monthly basis, sales declined in four of the five regions, with the Far North as the only region to post an increase.
  
  
  
  
• At the county level, 28 of the 53 counties tracked by C.A.R. posted year-over-year sales increases in August, including 17 with double-digit gains. Tehama led the state with an 89.3 percent increase, followed by Calaveras (50.9 percent) and Trinity (42.9 percent). Meanwhile, 24 counties recorded annual declines, nine of which fell by 10 percent or more, while sales in Del Norte were unchanged. Glenn experienced the largest drop (-52.6 percent), followed by Mariposa (-40.0 percent) and Kern (-17.2 percent). As is often the case in smaller counties, these sharp gains and losses may reflect low transaction volumes rather than significant shifts in underlying housing demand.
  
  
  
  
• Three of California's five major regions posted year-over-year median price gains in August, though appreciation remained modest. Southern California led with a 2.9 percent increase, followed by the Central Valley and Far North at 1.0 percent. The Central Coast saw the largest decline (-2.3 percent), while the San Francisco Bay Area slipped 0.2 percent. Month over month, price trends improved from July, with gains in Southern California and the Central Coast, flat in the Central Valley, and declines in the Far North and Bay Area.
  
  
  
  
• At the county level, 32 of the 53 counties tracked by C.A.R. posted year-over-year median price gains in August, led by Glenn (42.9 percent), Trinity (26.2 percent), and Lassen (25.6 percent). Twenty counties recorded declines, with the largest drops in Calaveras (-17.6 percent), Monterey (-16.2 percent), and Lake (-12.0 percent), while prices in Santa Clara were unchanged. As is common in smaller counties, these sharp swings likely reflect low sales volume and changes in the mix of homes sold rather than broad shifts in home values.
  
  
  
  
• Housing supply continued to improve in August as inventory took longer to sell. The Unsold Inventory Index rose 8.8 percent from July to 3.7 months, its highest level in six months, though still below the 3.9 months recorded a year ago. Active listings slipped 1.6 percent from July and were down 6.2 percent year over year but remained among the highest August levels in recent years. The rise in inventory despite fewer listings suggests housing demand softened further during the month.
  
  
  
  
• Active listings fell year over year in 38 of the 53 counties tracked by C.A.R., remaining below last summer's levels across much of the state. The largest declines were in San Francisco (-53.6 percent), Marin (-28.6 percent), and Trinity (-25.0 percent). Fifteen counties posted increases, led by Calaveras (37.8 percent), Kings (34.8 percent), and Imperial (22.4 percent). Overall, active listings were below year-ago levels in nearly three-fourths of counties.
  
  
  
  
• The median number of days it took to sell a California single-family home was 28 days in August, down from 31 days in August 2025.
  
  
  
  
• C.A.R.'s statewide sales-price-to-list-price ratio* was 98.9 percent in August 2026 and 98.3 percent in August 2025.
  
   
• The statewide median price per square foot** for an existing single-family home was $428, up from $427 in August a year ago.
  
   
• The 30-year, fixed-mortgage interest rate averaged 6.67 percent in August, up from 6.59 percent in August 2025, according to C.A.R.'s calculations based on Freddie Mac's weekly mortgage survey data. 

Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS^® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

Leading the way…® in California real estate for 120 years, the CALIFORNIA ASSOCIATION OF REALTORS^® (www.car.org) is one of the largest state trade organizations in the United States with nearly 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Sacramento.

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/california-home-sales-and-prices-rise-in-august-despite-higher-mortgage-rates-housing-costs-car-reports-302880932.html

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)