Despite California's statewide median home price approaching $900,000, several counties offer properties for a fraction of that cost. A recent report highlights regions, primarily in Northern California and the Central Valley, where the median home price is below $300,000, providing potential opportunities for homebuyers.
This affordability contrasts with a market where prices have risen 1.7% statewide. However, a recent drop in mortgage rates to a one-year low could offer some relief to prospective buyers, according to real estate experts.
Key Takeaways
- California's statewide median home price reached $899,140, a 1.7% increase.
- Lassen County is the most affordable, with a median sold price of $221,000.
- Mortgage rates have fallen to their lowest level in a year, potentially encouraging buyers.
- The most expensive housing markets are concentrated in the Bay Area, with median prices nearing $2 million in some counties.
California's Housing Market at a Glance
The latest home sales and price report from the California Association of Realtors (CAR) paints a picture of a complex market. The statewide median price for an existing single-family home now stands at $899,140. This figure represents a slight but notable increase, continuing the trend of high housing costs across the Golden State.
However, a significant development for buyers is the recent decline in mortgage rates. Rates have reached their lowest point in the last 12 months, a factor that could improve market activity for the remainder of the year.
Heather Ozur, president of the California Association of Realtors, stated that this is an “encouraging sign that sales could improve.” She added, “Many prospective homebuyers have been holding out in hopes of lower mortgage rates, and the declining trend in rates observed in the last few weeks could be the nudge that draw them back to the market.”
With predictions that rates may decrease further before year's end, the CAR report suggests that market conditions are becoming more favorable for those looking to purchase a home.
Understanding Mortgage Rates and Market Influences
While the Federal Reserve recently reduced its key interest rate, experts caution that this move may have a limited impact on consumer borrowing costs for home loans. Mortgage rates are not directly linked to the Fed's rate but are influenced by broader economic factors, including bond markets.
Fed Rate vs. Mortgage Rates
The Federal Reserve's target rate fell from a range of 4.25%-4.5% to 4%-4.25%. This rate primarily affects short-term loans, like credit cards. Mortgage rates, which are long-term loans, are more closely tied to the yield on 10-year Treasury bonds, investor demand, and the overall health of the economy.
According to Matt Schulz, chief consumer finance analyst at LendingTree, any claims about the exact response of mortgage rates to Fed moves are speculative. He previously told The Sacramento Bee, “Unlike credit cards, mortgage rates aren’t directly tied to Fed moves. Anyone who claims to know exactly how they’ll respond is just guessing.”
As of early October, data from Zillow indicated that the average rate for a 30-year fixed mortgage in California was approximately 6.4%. This figure represents a significant factor in the monthly cost of homeownership and overall affordability.
The Most Affordable Housing Markets in California
For those searching for homes priced well below the state median, the CAR report identifies several counties where property is significantly more accessible. These areas are predominantly located in the state's northern regions and the Central Valley.
Based on the most recent data for existing single-family homes, here are the 10 counties with the lowest median sold prices:
- Lassen County: $221,000
- Siskiyou County: $300,000
- Trinity County: $310,000
- Tehama County: $335,000
- Glenn County: $350,000
- Del Norte County: $352,500
- Lake County: $355,000
- Shasta County: $368,000
- Tulare County: $378,700
- Kings County: $380,000
Lassen County stands out as the only county with a median price under $225,000, making it a focal point for buyers seeking maximum affordability in the state.
California's Most Expensive Real Estate Markets
On the opposite end of the spectrum, California's highest housing costs are heavily concentrated in the San Francisco Bay Area and along the coast. In August 2025, the median sold price for a single-family home in the Bay Area averaged $1,275,000.
Price Disparity in California
The median home price in San Mateo County ($1,988,000) is nearly nine times higher than the median price in Lassen County ($221,000). This highlights the vast economic diversity within California's real estate market.
The five counties with the highest median home prices underscore the intense demand and limited supply in these desirable locations. According to the CAR report, these are the state's most expensive markets:
- San Mateo County: $1,988,000
- Santa Clara County: $1,900,000
- Marin County: $1,522,500
- San Francisco County: $1,500,000
- Santa Barbara County: $1,408,650
These figures illustrate the significant financial barriers to homeownership in major metropolitan and coastal areas, pushing many buyers to explore more affordable inland and northern regions of the state. The complete list of home prices for every county is available on the California Association of Realtors website.
