California real estate market update for July 2026

Real Estate News 07/06/2026

July 06, 2026

California's housing market carries momentum into summer, with sales accelerating even as prices push into record territory. Statewide sales rose from a year ago in May, and the median home price notched its second straight monthly high, led by the Bay Area, where several counties cleared the $2 million mark. Nationally, existing-home sales climbed to a five-month high as easing affordability drew buyers back in. Inventory across California's largest metros still trails last year's levels, keeping competition for well-priced listings brisk, even as statewide supply edges higher. Mortgage rates ticked down slightly last week, offering modest relief. Together, the data describe a market thawing gradually rather than reversing sharply, with room for prepared buyers and investors on both sides of the transaction.

In The News:

C.A.R. — California Home Sales Rise From Year-Ago as Median Home Price Breaks a New Record in May (June 17, 2026) — Statewide sales rose 5.1% year-over-year to an annualized 268,810 units, the strongest gain in eight months, while the median home price hit a record $930,260, up 2.3% from April. The Unsold Inventory Index rose to 3.4 months, and homes continued selling in a median 22 days.

NBC Bay Area — Bay Area sales help set new record for California median home prices (June 17, 2026) — The Bay Area's median single-family home price hit $1.45 million in May, up 3.6% from April, powering the statewide record. San Francisco County led with a 22.2% year-over-year jump to $2.2 million, while San Mateo reached $2.4 million; Santa Clara and Marin counties bucked the trend with declines.

NAR — NAR Existing-Home Sales Report Shows 3.2% Increase in May (June 9, 2026) — U.S. existing-home sales rose to a seasonally adjusted annual rate of 4.17 million units, the highest since December, with the median price up 1.3% year-over-year to $429,300. Chief Economist Lawrence Yun credited improving affordability, noting mortgage rates remain below year-ago levels despite recent upticks.

firsttuesday Journal — California's for-sale inventory growth: buyer caution rises faster than owner need to sell (June 29, 2026) — Inventory across California's five largest metros averaged 4.7% below year-earlier levels in May, led by a 14.7% drop in San Francisco listings. Locked-in low mortgage rates and ADU permitting are keeping owners in place, with analysts projecting continued inventory gains and a price bottom near 2028.

Bankrate — 30-year mortgage rates fall – When should you lock? (July 2, 2026) — The average 30-year fixed rate eased to 6.51%, down 0.09 points from the prior week, as easing geopolitical tensions pulled oil prices below $70 a barrel and calmed bond markets. Sticky inflation, with May's PCE index up 3.4% year-over-year, remains a headwind against further relief.

blog author avatar

TNG Team

Insights from The Norris Group team on hard money lending, trust deed investing, and California and Florida real estate markets.

Back to Blog

© 2026 The Norris Group. All rights reserved. Privacy Policy

NMLS ID 1623669 | California DRE 01219911 | Florida Mortgage Lender MLD1577