Crescent City, CA Housing Market

Market Overview

Crescent City’s PropertyIQ Score of 13 out of 100 places the market in a weak position relative to state benchmarks. The score is driven by mixed signals: 12-month home value momentum of 2.65 percent, 3-month home value momentum of -0.94 percent, a median of 78 days on market, and a 23.4 percent share of listings with a price cut. A median home value of $364,728 is less than half the California average of $764,158, which creates a lower entry price for buyers. However, that price advantage is tempered by median household income of $67,058, which is well below the state average of $99,122. The unemployment rate of 5.1 percent is equal to the state average of 5.1 percent, so labor market conditions do not add much strength.

Rental dynamics offer a more balanced picture. The rent index of $2,075 is slightly above the state average of $2,036, even though home values are far lower. That combination suggests rental demand is holding up relative to ownership costs, or that affordability pressures are shifting some households toward renting. With 98 homes for sale and a median of 78 days on market, the market is not moving quickly. A price cut share of 23.4 percent reinforces that sellers are adjusting to softer demand. Overall, Crescent City is a moderate-to-weak market with affordability at the purchase price level but limited momentum and lower local incomes.

Key Trends

The first trend is cooling home value momentum. The 12-month home value momentum of 2.65 percent indicates a modest annual gain, but the 3-month momentum of -0.94 percent shows that prices have turned slightly negative in the most recent quarter. The reported year-over-year home value change of $10 is nearly flat and supports the view that appreciation has stalled.

A second trend is a slower sales environment. The median days on market of 78 days means listings are taking more than two months to sell. That, combined with 23.4 percent of listings having a price cut, points to a market where buyers have more room to negotiate and sellers are lowering expectations.

A third trend is the mismatch between local home prices and local incomes. The median home value of $364,728 is less than half the state average of $764,158, but the median household income of $67,058 is also far below the state average of $99,122. In other words, the discount to the state median home value is not matched by a similarly strong local income advantage.

A fourth trend is relative strength in the rental market. The rent index of $2,075 is slightly above the state average of $2,036, which stands out because home values are so much lower than the state average. That may make the market more interesting for rental-focused investors, but it also means renters in Crescent City face costs that are not discounted the way home prices are. Inventory of 98 homes for sale is not large, but the slow pace of sales suggests supply is adequate for current demand.

Who Is This Market For

This market is best suited to buyers and investors with a long time horizon and realistic expectations. First-time buyers may be drawn to the median home value of $364,728, which is much lower than the state average of $764,158. However, with median household income of $67,058, local wages are also lower than the state average of $99,122, so affordability depends heavily on household finances. Buyers with outside income, remote work flexibility, or larger down payments may be better positioned to take advantage of lower purchase prices.

Rental-focused investors may see appeal in the rent index of $2,075, which is slightly above the state average of $2,036, combined with lower home prices. That can produce a more favorable cash flow profile than higher-priced California markets. Still, the 78-day median days on market and 23.4 percent share of listings with price cuts indicate that resale may be slow, so this is not a market for short-term flips or quick appreciation plays.

Move-up buyers may find this market challenging because price momentum is weak. A 3-month home value momentum of -0.94 percent and a year-over-year home value change of $10 suggest little equity growth to support trading up. Selling an existing home may also take time, as shown by the median days on market of 78 days. Without population growth data available, it is difficult to say whether new household formation will add meaningful demand.

Outlook

The near-term outlook for Crescent City is cautious. The 12-month home value momentum of 2.65 percent provides some positive annual context, but the 3-month momentum of -0.94 percent and the year-over-year home value change of $10 suggest that price growth has flattened or turned slightly negative. The median days on market of 78 days and a 23.4 percent share of listings with price cuts give buyers negotiating leverage and may keep downward pressure on prices in the short term. The rent index of $2,075, which is slightly above the state average of $2,036, could support rental demand and provide a floor for investor interest. However, with population growth data not available, the long-term demand picture is unclear. Based strictly on the current metrics, the market is likely to continue seeing slow sales, flat to slightly negative price momentum, and cautious seller behavior in the near term.