How to Buy a House in California
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$809,227
Closing Costs
$17,393
2.15% of price
Property Tax Rate
0.7%
$5,946/yr median
Days on Market
35
Median
FHA Loan Limit
$1,149,825
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
0.11%
$1.10 per $1,000
California's housing market is the most expensive and complex in the nation, with median home prices in many coastal metros exceeding $1 million and a regulatory environment that adds layers of cost and complexity for buyers. The state's housing shortage — driven by decades of underbuilding relative to population growth — has made affordability the defining challenge for California homebuyers. However, the market varies enormously: the Central Valley (Fresno, Bakersfield, Sacramento suburbs) offers prices at or near national averages, while the Inland Empire provides a middle ground between coastal prices and Central Valley affordability. California has some of the strongest buyer protections in the country, including extensive seller disclosure requirements, a mandatory natural hazard disclosure, and a robust escrow system that protects both parties.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in California
- ✓Highest home prices in the continental US
- ✓FHA loan limits up to $1,149,825 in high-cost counties
- ✓Prop 13 caps property tax increases at 2% per year
- ✓Multiple state-funded down payment assistance programs
The Home Buying Process in California
Buying a home in California follows a 10-step process. California does not require an attorney at closing, though you may choose to hire one.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in California
CalHFA MyHome Assistance Program
Deferred-payment junior loan for down payment
California Dream For All
Shared appreciation loan for first-generation buyers
Cost of Buying a Home in California
| Down Payment (3.5% FHA) | $28,323 |
| Down Payment (20% Conventional) | $161,845 |
| Average Closing Costs | $17,393 |
| Transfer Tax | $890 |
| Annual Property Tax (est.) | $5,665/yr |
Legal & Regulatory Details in California
Homestead Exemption
Available
Up to $300,000-$600,000 (varies by county median)
Licensing Authority
California Department of Real Estate
California Real Estate Law Overview
| Conveyance Document | Grant deed |
| Security Instrument | Deed of trust |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | No |
| Redemption After Sale | No |
| Reinstatement Available | Yes |
| Seller Disclosures | California's Transfer Disclosure Statement covers structural flaws, included appliances, damage, recent deaths, additions and neighborhood noise. Additional disclosures address smoke-detector compliance, earthquake safety, flood/fire hazards and sex-offender registry information. |
