Home Values in California
The median home value in California is $785,000. California remains the most expensive state for housing. After a 2022-2023 correction of 10-15%, prices have recovered in most metros. San Jose, San Francisco, and Orange County lead nationally.
What Drives Home Values in California?
Several California-specific factors influence home values beyond national trends:
- Property tax burden: At 0.71% (avg. $4,016/year), California's taxes are near the national average
- Assessment methodology: Under Proposition 13 (1978), property is assessed at its purchase price and cannot increase by more than 2% per year.
- Buyer exemptions: The Homeowner's Exemption reduces assessed value by $7,000, saving approximately $70/year.
- Financing limits: Conforming loan limit is $1,089,300 — Most California coastal counties qualify for high-cost area limits of up to $1,089,300. San Francisco, Santa Cruz, and Marin counties are at the national ceiling.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in California typically pay 6-8% of the sale price in total transaction costs. California charges a documentary transfer tax of $1.10/$1,000 of value statewide, with most counties and cities adding their own transfer taxes. Los Angeles city charges an additional 0.45%, and properties over $5M face higher rates.
Frequently Asked Questions
What is the average home value in California?
The median home value in California is $785,000. California remains the most expensive state for housing. After a 2022-2023 correction of 10-15%, prices have recovered in most metros. San Jose, San Francisco, and Orange County lead nationally.
How do property taxes affect home values in California?
California's effective property tax rate is 0.71%, with an average annual bill of $4,016. This near-average tax burden has a neutral impact on California home values.
What is the conforming loan limit in California?
The conforming loan limit in California is $1,089,300. Most California coastal counties qualify for high-cost area limits of up to $1,089,300. San Francisco, Santa Cruz, and Marin counties are at the national ceiling. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in California?
Sellers typically pay 6-8% of sale price in total transaction costs. California charges a documentary transfer tax of $1.10/$1,000 of value statewide, with most counties and cities adding their own transfer taxes. Los Angeles city charges an additional 0.45%, and properties over $5M face higher rates. Buyers pay an additional $7,200 in closing costs.