Record Loan Sizes Signal a Shifting CA Housing Market

The average purchase loan just hit a record $467,300, pointing to a California housing market increasingly driven by move-up and luxury buyers as affordability challenges sideline entry-level shoppers.

A record average purchase loan size of $467,300 was just recorded nationally — and here in California, where home prices are well above the national average, that number hits even closer to home.

What this tells me is that the current market is being carried by move-up buyers and higher-income households who have more flexibility — whether that's a larger down payment, existing home equity, or stronger income. Meanwhile, first-time buyers and those shopping at the entry level are increasingly being priced out, especially with 30-year fixed rates still hovering in the mid-6% range.

For California real estate investors, this is a meaningful signal. Demand in the mid-to-upper price tiers is holding up, while inventory at the lower end remains constrained. That dynamic can support property values in established neighborhoods and create opportunities in markets where workforce housing is scarce.

If you're a move-up buyer, a jumbo loan borrower, or an investor looking at California's higher-cost markets, now is a great time to review your financing strategy. Our team specializes in helping clients navigate complex loan scenarios — from conventional and jumbo to investment property financing.

Check our current rates or reach out today to see what you qualify for.