California home sales decline in January to lowest level since May 2025
 amid 23-month price low, C.A.R. reports

• Existing, single-family home sales totaled 256,550 in January on a seasonally adjusted annualized rate, down 10.8 percent from 287,570 in December and down 1.3 percent from 260,040 in January 2025.
  
  
• January's statewide median home price was $823,180, down 3.2 percent from $850,680 in December and down from $839,130 in January 2025.
  
  
• Year-to-date statewide home sales were down 1.3 percent in January.

SACRAMENTO (Feb. 18) – California home sales retreated in January to their lowest level since May 2025 as home prices fell to a 23-month low, the CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) said today.

Infographic: https://www.car.org/Global/Infographics/2026-01-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 256,550 in January, 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 January's sales pace continued throughout the year, with adjustments made for typical seasonal patterns. January sales were down 10.8 percent from a downwardly revised 287,570 in December and down 1.3 percent in January 2025.

The decline extends the streak of sub-300,000 seasonally adjusted annualized sales to 40 consecutive months, underscoring the ongoing market weakness in the last few years. However, a stronger than typical monthly increase in pending sales suggests that closed sales could rebound in February, especially since mortgage rates have recently declined nearly back to their recent lows.

Statewide pending home sales increased from both the prior month and January 2025. On a month-to-month basis, pending sales jumped 34.6 percent, as mortgage rates dropped sharply in the second week of January before bouncing back towards the end of the month.

"After closing out 2025 on a strong note, California's housing market has started the new year on a softer footing, with both sales and prices coming in below last year's levels," said 2026 C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. "However, as mortgage rates ease toward recent lows and housing supply is expected to improve in the coming weeks, we anticipate momentum to build as the market heads into the spring homebuying season."

California's median home price declined in January from both the prior month and year ago, falling to a 23-month low of $823,180 as market competition remained cool at the start of the year. The statewide median price dropped 3.2 percent from December, nearly double the long-run average of 1.7 percent observed between December and January. On a year-over-year basis, the median price fell for the third time in the past four months and registered its largest annual price decline since June 2023. Moderating demand and still-elevated inventory levels continued to exert downward pressure on prices in early 2026, indicating that the market is gradually transitioning towards a more balanced supply and demand condition.

"California's housing market pulled back in January as heightened policy uncertainty and geopolitical tensions contributed to increased volatility in mortgage rates early in the year," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "More recent economic indicators, however, suggest that the broader economy is beginning to stabilize, which should help restore confidence among both buyers and sellers. With pending home sales posting a solid gain last month, we anticipate a rebound in housing market activity in February."

Other key points from C.A.R.'s January 2025 resale housing report include:

• Only one major region in California recorded a non-seasonally adjusted, year-over-year increase in home sales. The Far North (19.8 percent) stood out as the sole region posting double-digit gains from a year earlier. Meanwhile, the Central Valley (-7.6 percent), San Francisco Bay Area (-7.0 percent), Central Coast (-5.0 percent), and Southern California (-4.4 percent) all registered moderate annual sales declines, reflecting a broad-based slowdown in closed sales activity at the start of the year. Although mortgage rates remain below their year-ago levels, recent volatility in rates has tempered buyer momentum, suggesting that while sales activity could improve as the spring homebuying season approaches, a rebound will depend on sustained rate relief and clearer economic signals in the months ahead.
  
  
• At the county level, 24 of the 53 counties tracked by C.A.R. posted year-over-year sales gains in January, with 14 recording double-digit increases. Mariposa led with sales that tripled from a year earlier, followed by Trinity (166.7 percent) and Tehama (128.6 percent). Meanwhile, 29 counties experienced annual sales declines, including 16 that fell by more than 10 percent, led by Lassen (-44.4 percent), Calaveras (-42.3 percent), and Glenn (-41.7 percent).
  
  
• Only two of California's five major regions recorded increases in year-over-year median home price gains. The Central Coast led with a moderate 2.9 percent growth in from January 2025, followed by the San Francisco Bay Area with a marginal 0.2 percent uptick. In contrast, the Far North posted the largest annual decline of 5.0 percent, while Southern California slipped 0.6 percent, and the Central Valley region remained flat compared to a year earlier.
  
  
• At the county level, 31 of the 53 counties tracked by C.A.R. recorded year-over-year median home price gains in January. Mono County led with a 222.6 percent increase, largely reflecting shifts in the mix of homes sold that skewed the median upward. Del Norte (19.3 percent) and Siskiyou (18.5 percent) followed with solid annual gains. Conversely, 21 counties registered price declines from a year earlier, while Sacramento remained unchanged. Mariposa experienced the steepest drop (-43.1 percent), followed by Trinity (-34.5 percent) and Plumas (-22.2 percent), underscoring continued price softness in select smaller markets.

• Housing inventory expanded in January, rising sharply from the prior month and moderately from a year earlier, as market activity slowed amid a slowdown in the labor market that weighed on consumer confidence. The Unsold Inventory Index was 4.4 months in January, up from 2.7 months in December and up from 4.1 months in January 2025. While total active listings rose from January 2025 for the 24th consecutive month, the annual gain recorded in January was the smallest in two years. January also marked the ninth consecutive month of decelerating inventory growth, suggesting that while housing supply has been showing some improvement, the pace of expansion is losing steam as the market continues to be hindered by mortgage volatility and economic uncertainty.
  

• The median number of days it took to sell a California single-family home was 39 days in January, up from 35 days in January 2025.
  

• C.A.R.'s statewide sales-price-to-list-price ratio* was 98 percent in January 2025 and 98.6 percent in January 2025.
  
• The statewide median price per square foot** for an existing single-family home was $399, down from $409 in January a year ago.
  
• The 30-year, fixed-mortgage interest rate averaged 6.11 percent in January, down from 6.96 percent in January 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.

# # #

January 2026 County Sales and Price Activity
(and condo sales data not seasonally adjusted)

r = revised
NA = not available

January 2026 County Unsold Inventory and Days on Market
(Regional and condo sales data not seasonally adjusted)

r = revised
NA = not available

 Article belongs to CAR.org

Click Here to Read More...

The California Housing Finance Agency's Dream For All Shared Appreciation Loan program will begin accepting applications for down payment assistance on February 24. The application window will close on March 16. After that, applications will be selected and audited. Recipients of conditional approval will have 90 days to shop for a home. C.A.R. was instrumental in getting funding for CalHFA's down payment assistance program.

The life-changing down payment assistance program, which offers first-generation homebuyers up to 20% of their home purchase price or appraised value in down payment assistance, will be using a random selection process to facilitate the equitable distribution of state funds.

CalHFA expects to make $150 million to $200 million available for 2026, and potential applicants should start getting ready now. The random selection process will include Governor Newsom's direction tha...

Click Here to Read More...