Is the California market finally cooling off, or is this just the calm before the spring surge? Here is what the February data tells us.
The California housing market showed signs of a “measured recalibration” in February 2026. According to the California Association of REALTORS®, the statewide median home price reached $830,370, a slight 0.2% increase year-over-year. While existing home sales dipped marginally by 0.3%, the market remains resilient with a steady 4.0 months of unsold inventory.
Efficiency is the current hallmark of the market; the median time on market rose to 29 days, yet homes are still selling at a robust 99.3% of list price. For buyers, a glimmer of relief appeared as the 30-year fixed rate fell to 6.05%, helping the Affordability Index climb to 18%.
The San Pedro Spotlight
In San Pedro, conditions offer a unique “buyer-friendly” pocket compared to the broader South Bay. The median list price hovers around $820,000 to $850,000, with Central San Pedro showing more significant value opportunities, with a median of $671,000. While the neighborhood currently leans toward a balanced market, the ongoing $500 million waterfront redevelopment is driving long-term investor interest, positioning San Pedro as a high-value coastal alternative.
Source: California Association of REALTORS® (C.A.R.)