Where can I buy a house in CA for under $225K? These counties have lowest prices

By Angela Rodriguez

October 7, 2025

A drop in mortgage rates and stabilizing home prices could offer some relief for buyers, real estate experts said.

Although the statewide median home price rose 1.7% to $899,140, mortgage rates dropped to their lowest level in a year, according to the California Association of Realtors’ most recent home sales and price report.

Heather Ozur, California Association of Realtors president, said this “is an encouraging sign that sales could improve the rest of the year.”

“Many prospective homebuyers have been holding out in hopes of lower mortgage rates, and the declining trend in rates observed in the last few weeks could be the nudge that draw them back to the market,” Ozur said in the Sept. 22 news release. 

With mortgage rates predicted to drop even lower before the end of the year, the Realtors group said, “conditions remain favorable for buyers.” 

Here’s a look at current mortgage rates, average home values and where you can find houses priced below California’s median.

Although the Federal Reserve recently cut its key interest rate by a quarter percentage point, the move is expected to have only a small effect on borrowing costs for consumers.

Mortgage rates, which aren’t directly tied to the Fed rate, are influenced by other factors such as bond markets. 

The Fed’s target rate fell from 4.25% and 4.5% to 4% and 4.25%. 

While the cut could put more downward pressure on mortgage rates, “there’s no guarantee,” according to Matt Schulz, chief consumer finance analyst at LendingTree, which tracks interest rates.

“Unlike credit cards, mortgage rates aren’t directly tied to Fed moves. Anyone who claims to know exactly how they’ll respond is just guessing,” Schulz previously told The Sacramento Bee.

 As of Tuesday, Oct. 7, the average 30-year fixed mortgage rate in California was about 6.4%, according to Zillow.

According to the California Association of Realtors’ most recent home sales and price report, the most affordable home prices could largely be found in Northern California and the Central Valley.

Based on the August home sales and price report released on Sept. 22, these 10 California counties had home prices below the state median of $899,140:

1. Lassen County — Median sold price of existing single-family homes was $221,000 

2. Siskiyou County — $300,000 

3. Trinity County — $310,000 

4. Tehama County — $335,000 

5. Glenn County — $350,000 

6. Del Norte County — $352,500 

7. Lake County — $355,000 

8. Shasta County — $368,000

9. Tulare County — $378,700

10. Kings County — $380,000

According to the California Association of Realtors, the most expensive home prices in the state can primarily be found in the Bay Area. 

The Realtors group’s most recent data shows the median sold price of a single-family home in the Bay Area averaged $1,275,000 in August 2025. 

These five counties had the highest median sold prices for existing single-family homes, according to the most recent figures:

1. San Mateo County — $1,988,000 

2. Santa Clara County — $1,900,000 

3. Marin County — $1,522,500 

4. San Francisco County — $1,500,000 

5. Santa Barbara County — $1,408,650