What the New Housing Data Means for You
If you’ve been tracking the California housing market, you know it usually feels like a high-stakes sprint. But according to the latest January 2026 “Market at a Glance” report from the California Association of Realtors, the pace is starting to feel a bit more like a brisk walk.
We aren’t seeing a “crash,” but we are seeing a much-needed cooling period that might give both buyers and sellers a chance to catch their breath. Here is the lowdown on what’s happening.
Prices and Sales are Dialing Back
For the first time in a while, the numbers are leaning into the negative—in a way that might actually be positive for your wallet. The median home price dipped slightly to $823,180, down 1.9% compared to last year. While that’s still a hefty sum, the Price Per Square Foot also saw a 2.4% drop, landing at $399.
Sales volume is also cooling, with existing home sales at 256,550 (a 1.3% dip year-over-year). Essentially, the “frenzy” is fading, replaced by a more calculated market.
More Time to Choose
The biggest win for buyers right now is breathing room. We’ve moved away from the era of “see it at 10 AM, offer by noon.”
- Inventory: Unsold inventory is up 7.3% and now sits at a 4.4-month supply.
- Days on Market: Homes are sticking around longer—39 days on average, which is an 11.4% jump from last year.
- Negotiation Power: The Sales-to-List Price Ratio is at 98.0%. This suggests that sellers are becoming more realistic, and buyers are finally finding some wiggle room to negotiate.
The Silver Lining: Affordability
While an 18% Affordability Index still highlights the Golden State’s challenges, there is a glimmer of hope. The 30-year fixed mortgage rate has edged down to 6.11%. With a slight dip in home prices, the dream of homeownership is becoming just a bit more accessible for those waiting on the sidelines.
Source: California Association of REALTORS® (C.A.R.)