California Housing Prices Continue to Rise, Median Price Exceeds $900,000
California’s housing market continues to witness an upward trend in prices, with the median price surpassing $900,000, making it increasingly challenging for many young people to achieve their dream of homeownership. Seasoned real estate agents in Southern California suggest that despite the fierce competition in the market, buyers can still find opportunities by adjusting their home preferences and exploring different regions.
Founder of a real estate service and investment company, Louis DiGonzini, recently shared in an interview with Epoch TV’s “California Insider” that the Southern California housing market has seen significant shifts before and after the pandemic. Currently, the growth rate has slowed down and is gradually returning to stable growth.
For many buyers waiting for a price dip to enter the market, the anticipated market changes have not materialized. DiGonzini believes that the housing market in Southern California will remain robust in the second half of the year, stating, “I don’t think there is a housing bubble right now.” The severe shortage of supply is expected to keep prices from cooling down.
He mentioned that young people and first-time buyers are facing not only soaring housing prices but also intense competition due to limited inventory. An example he provided was a property in Bakersfield, Central California, receiving nearly 20 offers in just one weekend.
President of the California Association of Realtors (C.A.R), Tamara Suminski, stated, “Despite challenges such as high mortgage rates and affordability concerns, the California housing market showed stronger momentum at the end of the first half of the year, with home sales hitting a six-month high.”
In the fast-paced market, how can young people and first-time buyers find homeownership opportunities?
DiGonzini’s business extends from Central California to the San Diego area in Southern California. He discovered that not all homes are equally sought after: renovated properties tend to sell quickly, while those with minor updates like a fresh coat of paint or cabinet replacements linger longer on the market, presenting more opportunities for buyers.
He noted that these homes may not be perfect, but buyers can negotiate for additional concessions from sellers, such as subsidies for closing costs or home repairs. Furthermore, buyers can later renovate the property themselves to increase its equity.
Drawing on an example, he mentioned a client who purchased a two-bedroom, two-bathroom apartment in Fullerton for $360,000 about three and a half months ago. The property lacked in-unit laundry and was in poor condition at the time. After spending around $45,000 on renovations, the client sold the property for approximately $585,000, creating over $200,000 in asset equity.
DiGonzini advised young buyers to rethink their approach to purchasing a home, suggesting not solely focusing on their ideal neighborhood or house type.
“If you aim to live in Irvine or Huntington Beach right away, it might be challenging. However, there are still opportunities if you look elsewhere,” he mentioned. Areas like Fullerton, La Habra, Stanton, and the outskirts of San Diego offer relatively more affordable options.
He further illustrated that someone working in Newport Beach could consider properties in Oceanside. Though the locations differ, the commute is manageable, and prices are nearly half as much.
According to reports from the California Association of Realtors and various online real estate companies, housing prices vary significantly across different regions in California. For instance, in July, the overall median price in California reached approximately $905,000, with Orange County averaging $1.49 million, San Diego at $1.085 million, Los Angeles around $910,000, and the Inland Empire at $435,000.
DiGonzini emphasized that buyers may not immediately find their dream home but can start small and “work their way up;” even in Orange County, there are many value-added properties available, one just needs to be willing to search.
While the Southern California housing market has cooled off in recent months, DiGonzini believes that sellers still hold the upper hand currently. “The biggest issue remains the inadequate inventory, a crucial factor driving the market,” he noted.
According to the California Association of Realtors, housing inventory tightened further in June, with the Unsold Inventory Index dropping from 3.8 months in June 2025 to 3.1 months in the same period in 2026. The housing supply is anticipated to remain tight for the rest of the summer.
DiGonzini pointed out that inadequate new housing construction in California is a key factor contributing to the supply crunch. Rising construction costs, coupled with increased regulations on builders by the government have led to a scenario where “if the policies are not favorable for profit, they won’t build.” The California Association of Realtors highlighted that the severe lack of inventory is one of the main reasons for the general upward trend in California housing prices.
The views expressed in this article represent the personal opinions of the interviewees and do not necessarily reflect the stance of “The Epoch Times.”