California homes for sale for $260K? Here’s where to find lowest prices
The new year is starting out on a high note for potential homebuyers.
Home prices in California have dipped slightly, according to the California Association of Realtors.
The group’s most recent report from Jan. 15 shows the statewide median home price was $850,680 in December, down 0.4% from $853,780 in November and lower than $861,020 from December 2024.
“California’s housing market closed out 2025 on solid footing, with both home sales and available inventory improving over the prior year,” Tamara Suminski, California Association of Realtors president, said in the Jan. 15 report.
As price growth slows and mortgage rates continue to drop, real estate experts say conditions are improving for potential homebuyers.
“We expect increased opportunities for buyers and a healthier, more balanced market in the months ahead,” Suminski said.
If you’re looking to buy a home in the new year, here’s a look at current mortgage rates, average home values and where you can find homes priced below California’s median.
What’s in store for California’s housing market in 2026?
Home prices in California are expected to rise in 2026, though real estate experts say the increase will be modest compared with past years.
The slower price growth could create more opportunities for buyers who were sidelined by the market in 2025, according to the California Association of Realtors.
“Housing affordability showed some improvement in the fourth quarter, and the combination of lower mortgage rates and a growing supply of homes should encourage more prospective buyers to enter the market this year,” said Jordan Levine, California Association of Realtors senior vice president and chief economist.
The Realtors group predicts the statewide median home price will climb to a record of $905,000 in 2026.
“While some policy uncertainty remains as we look ahead to the next 12 months, our outlook calls for modest economic growth and continued progress for the housing market in 2026,” Levine said in the Jan. 15 report.
What’s the 2026 forecast for mortgage rates?
Mortgage rates are expected to ease in 2026, offering some relief to homebuyers, according to the California Association of Realtors and the National Association of Realtors.
Lower rates could help offset the increasing home prices, the National Association of Realtors said.
The California Association of Realtors also predicts that, as economic uncertainty fades and rates begin to decline more steadily, the housing market should improve throughout 2026.
What are current mortgage rates in California?
Mortgage rates in California have dropped, according to the California Association of Realtors.
“With mortgage rates sliding a full percentage point since (2024), housing markets across the state are finally seeing a light at the end of the tunnel,” the Realtors group said in its Jan. 15 report.
As of Friday, Jan. 23, the average 30-year fixed mortgage rate in California was about 5.9%, according to Zillow.
The California Association of Realtors expects rates to stay below 6% in 2026.
Where can I find lowest home prices in California?
According to the latest report from the California Association of Realtors, California’s most affordable home prices are mostly in the northern part of the state.
Based on the December 2025 home sales and price report released Jan. 15, these 10 counties had median home prices below the statewide average of $850,680:
1. Trinity County — $260,000
2. Lassen County — $280,000
3. Tehama County — $304,500
4. Siskiyou County — $308,500
5. Lake County — $319,400
6. Glenn County — $342,000
7. Del Norte County — $361,000
8. Kings County — $374,700
9. Shasta County — $380,000
10. Tuolumne County — $381,000
Where are the highest housing costs in California?
The California Association of Realtors reported that the state’s priciest homes are mostly in the Bay Area.
In December 2025, the median price for a single-family home in the region reached $1,200,000.
The five counties with the highest median prices for existing single-family homes were:
1. San Mateo County — $2,058,000
2. Santa Clara County — $1,830,000
3. San Francisco County — $1,697,500
4. Marin County — $1,465,000
5. Orange County — $1,390,000
How much do homes cost in my California county?
Find the full list of home prices by county on the California Association of Realtors website.
This story was originally published January 26, 2026 at 5:00 AM with the headline "California homes for sale for $260K? Here’s where to find lowest prices."
