California Home Prices Hold Above $900,000 as the state’s housing market continued demonstrating resilience in June, supported by limited inventory and steady buyer demand despite elevated mortgage rates and ongoing affordability challenges.
The California Association of REALTORS reported the statewide median home price dipped 2.8% from May’s record high but remained above the $900,000 mark for the third consecutive month. The modest month-to-month decline reflects normal seasonal adjustments after spring’s peak selling season, while the market continues benefiting from a persistent shortage of homes available for sale.
California Home Prices Hold Above $900,000
The statewide median home price posted a modest 0.4% increase from June 2025, signaling continued stability even as price appreciation has slowed. Industry analysts attributed the softer annual gain in part to a more balanced mix of homes sold during the month, including fewer million-dollar transactions than the record share reported in May.
Although home prices eased slightly from the previous month, the data suggests California’s housing market continues avoiding the sharper price swings seen during previous market corrections.
Supply remains the key factor supporting prices.
Active listings declined 10.4% from a year earlier, marking the fifth consecutive annual decrease in available homes. Fewer properties on the market continue limiting choices for prospective buyers while helping maintain pricing strength for sellers.
Many homeowners remain reluctant to sell because they secured historically low mortgage rates in recent years. That “lock-in effect” continues reducing turnover, as owners are hesitant to exchange existing low-rate mortgages for today’s higher borrowing costs.
Limited Inventory Supports Market Stability
Housing economists expect inventory to remain constrained through the remainder of the summer as relatively few homeowners list their properties. While home prices typically soften during the second half of the year following the busy spring season, the limited supply of available homes is expected to cushion any seasonal declines.
For buyers, the current market may continue requiring patience as competition remains elevated for well-priced properties. For sellers, the ongoing inventory shortage provides favorable conditions, particularly for homes that are appropriately priced and presented.
Communities throughout the San Gabriel Valley, including Baldwin Park, El Monte, South El Monte, Rosemead, Arcadia, Temple City and Irwindale, continue experiencing many of the same market dynamics affecting California as a whole. Limited inventory has kept many neighborhoods competitive despite higher financing costs and moderating price growth.
Market Conditions Favor Long-Term Balance
Housing experts note that a slower pace of price appreciation can benefit both buyers and sellers by creating a healthier, more sustainable market. Stable home values, combined with gradual increases in available inventory over time, could improve opportunities for first-time buyers while allowing existing homeowners to retain equity.
The latest statewide housing statistics are available through the California Association of REALTORS at https://www.car.org/marketdata. Additional housing data and economic research can be found through the California Department of Housing and Community Development at https://www.hcd.ca.gov.
