Cheapest housing prices in California? Where to find homes as low as $250K
Thinking about buying a home before the year ends?
Despite California’s notoriously high housing costs, buyers can still find listings starting around $250,000, according to the California Association of Realtors.
The group’s most recent report from Nov. 18 shows the statewide median home price reached $886,960 in October.
That’s an increase of 0.4% from $883,640 in September, yet still 0.2% below the October 2024 median of $888,740.
“Home prices are growing at a manageable pace,” Tamara Suminski, California Association of Realtors president, said in the Nov. 18 report.
Along with more manageable home prices, Suminski said, “Housing demand in California has been steadily improving.”
“Even though mortgage rates have inched up since late October, the market remains active, and buyers still have solid opportunities,” Suminski said in the report. “As we head into 2026, these trends point to a promising moment for anyone considering a move in the California real estate market.”
If you’re looking to buy a home before the year ends, here’s a look at current mortgage rates, average home values and where you can find homes priced below California’s median.
What are current mortgage rates in California?
Mortgage rates in California have started to climb again since October, according to the California Association of Realtors.
“Mortgage rates, which briefly approached their 12-month low in October, have resumed an upward trajectory as the Federal Reserve took a more cautious approach during the government shutdown,” said Jordan Levine, California Association of Realtors senior vice president and chief economist.
Even though the Federal Reserve recently cut its key interest rate by a quarter percentage point, financial experts said most borrowers won’t notice much of a difference when buying a house.
That’s because mortgage rates aren’t directly tied to the Fed’s key interest rate, according to financial experts. Instead, they’re shaped by factors such as bond markets.
The Fed’s target rate dropped from 4.25% and 4.5% to 4% and 4.25%, which could slightly ease mortgage rates,
However, experts warn not to expect big changes.
“There’s no guarantee,” Matt Schulz, chief consumer finance analyst at LendingTree, previously told The Sacramento Bee. “Unlike credit cards, mortgage rates aren’t directly tied to Fed moves. Anyone who claims to know exactly how they’ll respond is just guessing.”
As of Monday, Dec. 1, the average 30-year fixed mortgage rate in California was about 6%, according to Zillow.
“With the market easing into its seasonal slowdown, housing demand will stay soft, and California is likely to close out 2025 with only a modest uptick in home sales over last year,” Levine said in the Nov. 18 report.
Where can I find most affordable home prices in California?
According to the latest report from the California Association of Realtors, the state’s most affordable homes can primarily be found in Northern California and the Central Valley.
Based on the October home sales and price report released Nov. 18, these 10 counties had median home prices below the statewide average of $886,960:
1. Trinity County — Median sold price of existing single-family homes was $250,000
2. Lassen County — $251,500
3. Siskiyou County — $286,000
4. Glenn County — $325,000
5. Lake County — $340,000
6. Tehama County — $353,880
7. Kings County — $357,500
8. Del Norte County — $360,000
9. Tuolumne County — $360,000
10. Shasta County — $360,500
Where are the highest housing costs in California?
The California Association of Realtors said the most expensive homes in the state are largely found in the Bay Area.
In October 2025, the median price for a single-family home in the region was $1,300,000, according to the group’s latest data.
The five counties with the highest median prices for existing single-family homes were:
1. San Mateo County — Median sold price of existing single-family homes was $2,189,500
2. Santa Clara County — $1,950,000
3. San Francisco County — $1,850,000
4. Marin County — $1,680,000
5. Orange County — $1,391,000
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 December 2, 2025 at 5:00 AM with the headline "Cheapest housing prices in California? Where to find homes as low as $250K."
