California’s median housing prices are soaring to record highs, boosted by pricey Bay Area home sales, according to the California Association of Realtors.
How high? The median cost of a home in California reached $930,260 in May, a 2.3% increase from April and a 3.1% increase from the same time last year.
And, the Bay Area recorded a 3.6% increase in the median price for a single-family home in May. The median price in the Bay Area for a home that month was $1.45 million, according to the report.
Several Bay Area counties saw increases in their median home price, including San Francisco County, which recorded a whopping increase of 22.2% since May 2025. The median price there is $2.2 million, the association noted.
Limited Housing Supply
San Mateo County recorded a 9.1% increase in housing prices since May 2025, and Alameda County realized a slight 2.6% increase.
Some Bay Area counties, such as Marin and Santa Clara County, saw housing prices decrease slightly from last year, the report said.
The California Association of Realtors said that a limited housing supply has pressured sellers to increase prices.
“Housing supply has remained constrained in recent months as the lock-in effect continued to put many would-be sellers on the sidelines, intensifying competition and placing upward pressure on home prices,” CAR Senior Vice President and Chief Economist Jordan Levine said.
The group said it believes that housing prices will stay up once buyers return to the market.
“While the statewide median price typically reaches its seasonal peak in May, the recent easing of tensions in the Middle East could bring more buyers back into the market and keep price pressures up at the start of the third quarter,” he added.
California Association of Realtors President Tamara Suminski said that housing sales softened in May because of the conflict in the Middle East.
