California Home Sellers Face Decade-High Rate of Price Cuts as Inventory Stagnates

Typical monthly mortgage payments in California have risen to approximately $2,750 as rates climb into the mid-6 percent range. This borrowing cost has contributed to a 2.4 percent year-over-year decline in pending sales, the steepest drop in three months.

Properties are staying on the market longer, with the typical home now taking 51 days to go under contract—the slowest pace for this time of year since before the pandemic. Consequently, 34 percent of California listings have seen price reductions, the highest share for this time of year in more than a decade.

In Riverside, 32.7 percent of sellers have cut prices, with an average reduction of $16,133 across all sellers. In San Jose, while only 11.1 percent of sellers cut prices, those who did reduced their asking price by an average of $152,108.

This shift occurs as existing-home sales prices in the West region fell 1.3 percent in March. Nationally, the National Association of Realtors has revised its 2026 existing-home sales forecast from a 14 percent increase down to 4 percent.