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July 2, 2026

  • Jul 2
  • 3 min read

Newsom Signs Balanced Budget with $1.7B Locked-in for Housing

Housingwire

California Gov. Gavin Newsom has signed the state's balanced 2026-27 budget, which includes nearly $1.7 billion for housing and homelessness programs. The package provides $900 million for Homeless Housing, Assistance and Prevention grants, $500 million for Low-Income Housing Tax Credits in 2027, $200 million for the Multifamily Housing Program and $100 million for housing stability efforts aimed at helping renters remain housed.


The budget also sets the stage for the November 2026 Veterans and Affordable Housing Bond Act, which would authorize $11.25 billion for affordable housing construction, rental assistance, homeownership programs and veterans' home loans if approved by voters. Meanwhile, lawmakers continue advancing housing legislation focused on streamlining permitting, reducing construction costs, expanding homeowners insurance protections and encouraging condominium development before the legislative session concludes in September.




Congress Passed a Massive Housing Bill. Don’t Expect Prices to Drop Any Time Soon

Sacramento Bee

The bipartisan 21st Century ROAD to Housing Act, which has passed Congress and is awaiting final action to become law, is intended to improve housing affordability by increasing the nation's housing supply and reducing barriers to new construction. But experts say homebuyers should not expect home prices to decline anytime soon. The nation's housing shortage has built up over decades, and it will take years for additional supply to meaningfully affect prices. Elevated mortgage rates also remain a key affordability challenge beyond the bill's scope.




$1 Million Starter Homes? That’s the New Price Tag in These U.S. States

Money.com

A growing number of U.S. cities now have starter homes valued at $1 million or more, underscoring how rising home prices continue to challenge affordability for first-time buyers. According to a new Zillow analysis, 242 cities across 26 states now have typical entry-level homes with seven-figure price tags, nearly triple the number recorded before the pandemic.


California continues to lead the nation, with 105 cities where a typical starter home costs at least $1 million. The report attributes the trend to years of limited housing construction colliding with strong demand during the pandemic housing boom. While million-dollar starter homes remain the exception nationwide—the typical U.S. starter home is valued at about $199,000—the findings highlight the ongoing affordability challenges in many high-cost markets.




Home Listing Prices Post Another Record Decline, Boosting Affordability for Buyers

Realtor.com

June saw the national median asking price fall 2.5% from a year ago to $430,000, according to the latest Realtor.com® monthly housing market trends report released Wednesday. This marks the eighth consecutive month of decreases and the steepest annual decline in the platform's data history, which dates back to 2017.


For a buyer who purchased a $430,000 home in June with a 20% down payment and an average mortgage rate of 6.49%, the typical monthly payment was $2,172. That is roughly $132 less per month—and more than $1,500 less per year—than what the typical buyer owed in June 2025, when the median price was $440,950 and rates averaged 6.82%.




Demand for Riskier Mortgages Drops, as Their Advantages Shrink

CNBC

Overall mortgage demand essentially flattened last week, as interest rates continue to hover in a narrow range. Borrowers are also pulling back from riskier loans, as they are offering smaller advantages.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, decreased to 6.57% from 6.59%, with points increasing to 0.65 from 0.63, including the origination fee, for loans with a 20% down payment.


 
 
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