Are home prices going down in California?

Home values in California are up 0.6% over the last year. Zillow's forecast for the next 12 months is +1.1%.

How much do you need to earn to buy a home in California?

A household needs about $165,086 a year to afford the typical home in California at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $100,130.

California housing market

Data through September 2026 · updated 2026-11-07 · free, from Zillow, Realtor.com, the Census Bureau and other public sources

Typical home value$761,538+0.6% YoY · prices are rising

Market right nowBalanced marketMore homes for sale than last year, 19% have cut their price

Income needed to buy, per year$165,086About 1.6× the local median income ($100,130): hard to afford

Days on market57 daysAbout the same pace as a year ago

Next 12 months+1.1%Zillow expects prices to rise slightly

The typical home in California is worth $761,538, up 0.6% from a year ago. That is slightly above what local incomes have historically supported: fair value is about $718,059, so the area is 6.1% overvalued. It is a balanced market: homes take about 57 days to sell, listings are up 6% from a year ago, 19% of listings have had a price cut. Zillow expects prices to rise about 1.1% over the next year. A household needs about $165,086 a year to afford the typical home here at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $100,130. In the latest IRS figures, 209,441 more people moved out than in.

Home value over time

Solid: typical home value · dashed: fair value (household income × the 20-year average price-to-income ratio). Sources: FHFA, Zillow, U.S. Census Bureau.

Prices and affordability

Typical home value	$761,538
Change in 1 year	+0.6%
Overvalued %	+6.1%

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Fair home value	$718,059
Change in 5 years	+13.3%
Zillow forecast, next 12 months	+1.1%
Home value to income	7.6×
Monthly mortgage payment (20% down)	$4,127
Income needed to afford it	$165,086
Property tax rate	0.70%

Rent and investing

HUD Fair Market Rent, 2 bedrooms

$2,627

Market activity

Listings vs a year ago	+6.2%
Days on market	57
Listings with a price cut	18.6%

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Homes for sale	74,992
Pending sales per 100 listings	32
Asking price per sq ft	$452

People and jobs

Median household income	$100,130
Population change (1 year)	−0.0%
Unemployment rate	6.6%

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Population	39,355,309
Income adjusted for cost of living	$90,452
Net moves in (IRS)	−209,441
Cost of living (US = 100)	110.7

Schools, risk and environment

FEMA hazard risk score (0 to 100)	98.8
Unhealthy air days a year	54
Flood risk score	98.5

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Wildfire risk score	96.8
Walkability (1 to 20)	12.1
Road, rail and air noise	54 dB

Questions people ask

Is California overvalued?: Home prices in California are slightly above what local incomes have historically supported: fair value is about $718,059, so the area is 6.1% overvalued.
Is California a buyer's or seller's market?: California is a balanced market: homes take about 57 days to sell, listings are up 6% from a year ago, 19% of listings have had a price cut.
Are home prices going down in California?: Home values in California are up 0.6% over the last year. Zillow's forecast for the next 12 months is +1.1%.
How much do you need to earn to buy a home in California?: A household needs about $165,086 a year to afford the typical home in California at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $100,130.

Metro areas

Counties

See every chart for California on the map