Houses under 250K in California? Where to find cheapest prices in the state
AI-generated summary reviewed by our newsroom.
- California median home price fell to $884,050 in July 2025, down 1.7% from June.
- Trinity, Lassen and Lake counties offer lowest median home prices under $365,000.
- Mortgage rates dropped to 6.7%, but inflation could push them back toward 7%.
Buying a home can be costly — especially in California.
According to the California Association of Realtors’ July home sales and price report, the statewide median home price dropped to $884,050.
However, some California counties offer home prices below the statewide median.
With fewer homes selling and prices dipping slightly, the Realtors group said, the housing market slowed down in July.
“Encouragingly, mortgage rates have recently declined to their lowest level since last October, and that has already led to an increase in purchase applications,” Heather Ozur, California Association of Realtors president, said in the Aug. 19 news release. “If this trend continues, we could see stronger buyer activity and renewed demand in the months ahead.”
Here’s a look at current mortgage rates, average home values and the areas where you can find houses priced below California’s median.
What are current mortgage rates in California?
As of Tuesday, Aug. 19, the average 30-year fixed mortgage rate in California was 6.7%, according to Zillow.
“While mortgage rates have dropped to their lowest level since October 2024, the latest uptick in inflation could reverse the recent rate improvement trend and push rates back up closer to 7%,” the Realtors group said.
How has the housing market changed in California?
In July 2025, California saw fewer single-family home sales compared to June, with a total of 261,820 homes sold.
“With housing inventory reaching a plateau and the statewide sales-price-to-list ratio hitting a near 30-month low, the market appears to be cooling off slightly as home prices dipped for the third straight month,” Jordan Levine, California Association of Realtors senior vice president, said in the Aug. 19 report.
The median home price in July was about $884,000.
This was a 1.7% decrease from June and a 0.3% drop from July 2024.
“Even with recent price declines, California’s median home price could still see a modest annual increase in 2025, provided the market stabilizes in the coming months,” Levine said.
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Where can I find lowest home prices in California?
According to the California Association of Realtors’ July home sales and price report, the most affordable home prices could largely be found in Northern California and the Central Valley.
Based on the July home sales and price report released on Tuesday, Aug. 19, these 11 California counties had home prices below the state median of $884,050:
1. Trinity County — Median sold price of existing single-family homes was $240,500
2. Lassen County — $311,000
3. Lake County — $364,500
4. Siskiyou and Kings County — $365,000
5. Del Norte County — $369,000
6. Tehama County — $370,000
7. Glenn County — $375,000
8. Shasta County — $380,000
9. Tulare County — $382,990
10. Kern County — $390,000
Where are the most expensive homes in California?
According to the California Association of Realtors, the most expensive home prices in the state can primarily be found in the Bay Area.
In July 2025, the median sold price of a single-family home in the Bay Area averaged $1,300,000.
These five counties had the highest median sold prices for existing single-family homes, according to the most recent figures:
1. San Mateo County — $2,100,000
2. Santa Clara County — $1,900,000
3. San Francisco County — $1,637,380
4. Marin County — $1,625,000
5. Orange County — $1,400,000
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.
Is now a good time to buy a house in California?
If you’re ready and able to buy a home, now would be a smart time to make that purchase, according to a recent Redfin report.
Though home prices remain high, mortgage rates have dropped.
However, given the unpredictable nature of the economy, it’s hard to know where rates and prices will go next.
“Waiting for rates to fall further leaves you at risk of competition among buyers and subsequent price hikes from sellers,” Redfin said.
This story was originally published August 22, 2025 at 5:00 AM with the headline "Houses under 250K in California? Where to find cheapest prices in the state."
