Realtor.com’s 20 Hottest Markets rankings show California has dropped off the list. People are seeking housing by moving to less expensive cities, with more affordable housing options. The rankings are a factor in a combination of demand (measured by the number of unique views per home listing) and how quickly homes are selling (measured by the number of days on the market). For the first time in the history of these monthly rankings—which began in 2016—California has dropped off the list and is nowhere to be found.

According to most experts, the market will continue to see good buyer demand and a positive rate of home price appreciation, despite a significant cooling from the extreme heat of early spring 2022. However, California is no longer a desirable location to live in since purchasers have endured exorbitantly high housing prices for years, and at least some homebuyers appear to have hit their breaking point. The tight supply and the higher cost of borrowing were responsible for the near double-digit decline in sales in June.

The California Down Payment Resource Directory is a powerful search tool that identifies current down payment assistance programs in communities throughout California. Buyers can search by city or address for public- and private-funded assistance programs including FHA/VA, HUD, affordable fixed-rate mortgages, rehab loans, and more. Start your search for down payment assistance now!