California home prices hit all-time high. Where to find the cheapest housing
California home prices have climbed to an all-time high, according to real estate experts.
The California Association of Realtors reported that the median home price in April climbed to $910,160, the highest level in 10 months.
That’s a 2.9% increase from March and a 0.7% rise compared to April 2024.
Despite the new record high, the Realtors group expects price growth to slow.
“Ongoing economic uncertainty has slightly dampened demand, while a steady rise in inventory has contributed to more moderate price growth this year,” Jordan Levine, California Association of Realtors senior vice president, explained in a Monday, May 19, news release.
While prices increased, home sales saw a slight dip. Approximately 267,700 single-family homes sold in April, which is a 3.4% decrease from March and a 0.2% drop compared to last year.
Heather Ozur, California Association of Realtors president, said the housing market had a slow start to the spring buying season “due to concerns over tariffs and a potential recession.”
“As trade negotiations between the U.S. and its trading partners continue, we hope to see more clarity once these trade deals are finalized,” she said.
If you’re in the market for a new home in California, here’s what you need to know about current mortgage rates, home values and where to find prices below the statewide median average.
What are current California mortgage rates?
As of Monday, May 19, the average 30-year fixed mortgage rate in California was 7.03%, according to Zillow.
“While mortgage rates are in an especially unpredictable period, barring unforeseen shocks, Zillow expects rates to end the year near 6.5%,” the online real estate company said in a report published on April 18.
Which California counties have the lowest home prices?
California’s cheapest home prices can largely be found in Northern California and the Central Valley, according to the California Association of Realtors report.
These 11 California counties had home prices below the state median of $910,160 in April:
1. Siskiyou County
- Median sold price of existing single-family homes: $290,000
- Region: Northern California
2. Lassen County
- Median sold price of existing single-family homes: $305,000
- Region: Northern California
3. Glenn County
- Median sold price of existing single-family homes: $307,000
- Region: Central Valley
4. Lake County
- Median sold price of existing single-family homes: $325,000
- Region: Northern California
5. Trinity County
- Median sold price of existing single-family homes: $332,790
- Region: Northern California
6. Tehama County
- Median sold price of existing single-family homes: $360,000
- Region: Northern California
7. Kings County
- Median sold price of existing single-family homes: $363,490
- Region: Central Valley
8. Shasta County
- Median sold price of existing single-family homes: $374,380
- Region: Northern California
9. Del Norte County
- Median sold price of existing single-family homes: $380,000
- Region: Northern California
Tuolumne County
- Median sold price of existing single-family homes: $380,000
- Region: Central Valley
10. Tulare County
- Median sold price of existing single-family homes: $380,660
- Region: Central Valley
Where are the most expensive homes in California?
According to the California Association of Realtors, the most expensive home prices in the state can be found in the Bay Area.
Bay Area housing costs surpassed $2 million in April.
These five counties had the highest median sold prices for existing single-family homes, according to the most recent figures:
- San Mateo County — $2,281,500
- Santa Clara County — $2,121,000
- San Francisco County — $1,780,000
- Marin County — $1,720,000
- Santa Barbara County — $1,550,000
How much do homes cost in my California county?
You can find the full list of home prices by county on the California Association of Realtors website.
Home values are dropping in California
Home values in California are expected to drop in 2025, according to a recent Zillow forecast.
The real estate company had previously predicted a slight increase, but now expects prices to fall by 1.9% nationwide.
“The combination of rising available listings and elevated mortgage rates is signaling potential price drops by year’s end,” Zillow said. “With increased supply, buyers are gaining more options and time to decide, while sellers are cutting prices at record levels to attract bids.”
In California, home values in one Mendocino County community were expected to decrease the most overall by next March, according to Zillow.
Home values in Ukiah are expected to drop about 9% from $480,126 to approximately $436,915 by March 2026, the real estate company said.
These are the top 10 metropolitan areas in the Golden State where Zillow predicts home values will drop the most between now and March 31, 2026:
- Ukiah: 9% decrease in home value
- Eureka: 7.3%
- Clearlake: 5.5%
- Chico: 5.4%
- San Francisco: 5.2%
- Santa Rosa: 5.2%
- San Jose: 4.8%
- Napa: 4.3%
- Truckee: 4.2%
- Vallejo: 4.2%
With a 9% decrease, home values in Ukiah will drop from $480,126 to approximately $436,915 by March.
