The latest C.A.R. report shows California’s housing market cooling sharply in January 2026: existing single-family home sales hit a seasonally adjusted annualized rate of just 256,550—the lowest since May 2025—down 10.8% from December and 1.3% from the previous January. The statewide median price dropped to $823,180, a 3.2% slide from December and the lowest in 23 months. Inventory of homes climbed to a 4.4-month supply, with homes lingering on the market longer.

This slowdown comes amid mortgage rate volatility, economic uncertainty, and buyers holding back or becoming pickier amid more options.

Across our neighborhoods, this dip proves the market doesn’t need Sacramento’s heavy hand forcing massive new builds and overriding local zoning. When demand softens, and prices ease naturally—like we’re seeing now—our communities stay livable without top-down mandates that strip away neighbor voices. Let’s keep planning local, protect what makes our places home, and pass that initiative to lock in local control!