EL MONTE — California Housing Market Shifts as high mortgage rates continue to challenge buyers across the San Gabriel Valley. Yet verified statewide data shows sales improved in June while prices retreated from May’s record high.
Existing single-family home sales reached a seasonally adjusted annual rate of 279,880 in June, according to the California Association of Realtors. Sales increased 4.1% from May and 6% from June 2025. Year-to-date sales were up 1.9%.
The statewide median price fell 2.8% from May’s record $930,260 to $904,640 in June. It remained 0.4% above the June 2025 median of $901,310.
For buyers in El Monte, Baldwin Park, Rosemead and nearby communities, financing costs remain a major consideration.
California Housing Market Shifts With Affordability
Mortgage rates continue to limit what many households can afford.
The 30-year fixed mortgage rate averaged 6.49% in June, according to C.A.R. calculations using Freddie Mac survey data. That was below the 6.82% average recorded in June 2025.
Freddie Mac reported a 6.55% average rate for a 30-year fixed mortgage on July 16. The rate was 6.75% one year earlier.
Those rates can translate into substantial monthly payments for San Gabriel Valley buyers. A $700,000, 30-year mortgage at 6.5% carries principal and interest of about $4,425 monthly.
Property taxes, insurance and other costs would increase the total payment.
Prices Moderate After May Record
June’s statewide price decline followed two consecutive record-setting months.
C.A.R. cautioned that the change largely reflected the mix of properties sold rather than broad declines in individual home values. Million-dollar homes represented 36.9% of June sales, down from 38.5% in May.
Southern California’s median price stood at $900,000 in June. That was down 1% from May but 2.3% above June 2025. Sales in the region increased 10.8% from a year earlier.
That regional figure covers a broad area and does not represent prices in individual San Gabriel Valley cities.
Rates Remain Key For Fall Buyers
Inflation also remains important because financial markets consider inflation expectations when pricing longer-term debt.
The U.S. Consumer Price Index fell 0.4% in June on a seasonally adjusted basis, the Bureau of Labor Statistics reported. Consumer prices remained 3.5% higher than a year earlier. Core inflation, excluding food and energy, was 2.6% higher.
California Housing Market Shifts will remain closely tied to affordability as local families evaluate fall purchases.
For San Gabriel Valley households, lower prices alone may not make ownership attainable. Mortgage rates, available inventory and household finances will continue shaping purchasing decisions in the months ahead.
Readers can follow statewide housing reports through the California Association of Realtors and national mortgage trends through Freddie Mac’s Primary Mortgage Market Survey.
