California Home Sales Surge in June 2026 Despite High Mortgage Rates
The California Association of Realtors® (C.A.R.) has reported a significant rebound in home sales for June 2026, with buyers re-entering the market despite elevated mortgage rates. The state achieved the highest home sales in six months, concluding the first half of the year positively. Sales climbed by 4.1% from May, reaching a seasonally adjusted annual rate of 279,880 homes, marking the third consecutive month of year-over-year sales growth and the strongest annual increase since September 2025.
Despite remaining below the 300,000 benchmark, the June surge in sales pushed the year-to-date growth to 1.9%, indicating expanding demand beyond the high-end market. Entry-level and mid-tier home sales primarily fueled this growth, while higher-priced home sales have declined for the second consecutive month. This shift highlights broader market dynamics influencing real estate transactions.
Pending sales witnessed a rebound, increasing 2.8% year-over-year, though they displayed a typical seasonal decline of 2.8% from May. Market observers remain vigilant about potential impacts from rising energy prices amidst renewed Middle East conflicts. These factors could elevate mortgage rates, potentially posing challenges to housing demand and impacting broader financial planning for buyers.
C.A.R. President Tamara Suminski pointed out that the increased inventory and buyers' adaptation to market conditions might maintain housing demand throughout the remainder of 2026. The statewide median home price in June slightly decreased by 2.8% to $904,640 from May's record $930,260. This decline is more a result of changes in the types of homes sold rather than an overall price drop, with a reduced share of million-dollar-and-above homes sold.
C.A.R. Senior Vice President and Chief Economist Jordan Levine cautioned that while sales are stabilizing, potential increases in mortgage rates could impact affordability and demand as the buying season progresses. Key data from the June 2026 report highlights a fluctuating median sales price across different regions, with single-family homes in the Central Valley recording the most substantial year-over-year increase of 13.8%. Other areas, like the Far North and Inland Empire, also noted strong sales growth.
Inventory levels showed modest improvement, reflected in a statewide index of 3.1 months. The report underscored an efficient market turnover, with properties typically spending 23 days on the market. C.A.R., representing nearly 190,000 members, continues to support real estate professionals with resources and advocacy across various government levels to promote a vibrant housing market.