In January 2026, California's housing market cooled with closed sales down 10.8% from December and median home prices dropping 3.2% to $823,180, the lowest in nearly two years. Inventory rose to 4.4 months, and days to sell increased to 39. Mortgage rates eased to 6.11%. Regional sales and price trends varied, with some areas seeing gains and others declines. Pending sales surged 34.6%, suggesting a possible spring rebound.