California (CA) housing market

Name: California Housing Market Data
Creator: Redfin

Warm Market

Statewide monthly sale-market indicators for rental investors — not a substitute for local rent comps, taxes, or insurance, but a fast read on price level, pace, and negotiation pressure.

Data period: May 2026

Market snapshot

Median sale price: $887K
Median days on market: 33 days
Months of supply: 3.2
Active inventory: 78,189
Homes sold: 24,400
Sale-to-list ratio: 100.7%
Listings with price drop: 26.1%
Data month: May 2026

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Pair this view with the rental property calculator, DSCR calculator, and cap rate calculator — or browse all calculators.

Rental Investor Snapshot

Labels below come from monthly sale-market indicators only. True cash flow requires local rent, taxes, insurance, vacancy, and expense assumptions — model those in the rental calculator, then sanity-check against sale-speed signals here.

Market temperature: Competitive
Buyer leverage: High
Pricing signal vs. U.S. median: Harder buy-in vs. U.S. median (price only)
Investor fit (heuristic): Appreciation · Negotiation

Watch-outs

High median sale prices raise buy-in and tighten margin for error.
Elevated price cuts can signal negotiation room — verify condition, rents, and comps street-by-street.

Suggested next step: Run a rental property analysis with your own rent, financing, vacancy, and expense assumptions — then sanity-check against this market's sale-speed and negotiation signals.

Warm Market

The market is active with moderate buyer demand.

California market summary

The California housing market is heating up. As of May 2026, the median home sale price is $887K, up 3.4% year-over-year. Homes are spending a median of 33 days on the market, 0.0% shorter than a year ago.

There are 78,189 homes for sale — 14.3% fewer than last year. With 3.2 months of supply, this is a seller's market. 34,703 new listings were added during this period, down 10.5% year-over-year.

Homes are selling for 100.7% of their list price on average, indicating buyers are paying above asking. 41.1% of homes sell above their asking price. 26.1% of listings have had a price drop.

Market Opportunity Score

Based on current market conditions

Contributing Factors

Months of Supply– 3.2

Days on Market↑ 33

Price Drops↑ 26.1%

Sale-to-List Ratio– 100.7%

Market Temperature– Warm

How This Market Compares

vs. National Median

Median Price (National: $450K)↑ 97.3%

Days on Market (National: 42)↓ 21.4%

Inventory (National: 1,460,440)↓ 94.6%

Investor takeaway

A significant share of sellers are cutting prices, which can signal motivated sellers and potential deals. Prices are 97% above the national median. Model rent-to-price and expenses carefully before assuming cash flow.

California market trends

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Detailed market metrics

Median list price

$865K

Price per sq ft

$518

Sale-to-list ratio

100.7%

Months of supply

3.2

Sold above list

41.1%

Price drops

26.1%

New listings

34,703

↓ 10.5% YoY

Pending sales

29,311

California housing market FAQs

What is the median home price in California?

For the latest published month, the median sale price in California is $887K. Median means half of homes sold above that price and half below — it is a useful benchmark, not a rule for every listing.

Is California a buyer's or seller's market?

With about 3.2 months of supply, conditions often favor sellers (inventory is relatively tight versus sales pace). Buyers may need to move quickly and keep offers competitive.

How long do homes stay on the market in California?

For the latest published month, the median days on market in California is 33 days — half of homes went pending faster and half slower.

Is California good for rental property investors?

Sale-market stats show how competitive buying is (speed, negotiation, inventory). They do not prove rent performance. California can still work for rentals if the numbers work on a deal-by-deal basis — use local rent comps, financing, vacancy, and expenses in the rental property calculator.

How should investors analyze a rental property in California?

Start with purchase price, financing, rent, vacancy, operating expenses, and capital repairs. Stress-test rates and rent. Will It Flow’s rental property calculator is built to translate those inputs into cash flow, DSCR, cap rate, and cash-on-cash return for California deals.

Metro markets in California

Open a metro for the same investor snapshot and trends, then run a shortlist through the DSCR calculator and cap rate calculator.

Los Angeles, CA

$940K median · 42 days on market