02/01/2026
The California housing market is showing signs of stability and slow growth after several years of tight inventory and high prices. Here’s what buyers, sellers, and investors should know:
✨ Modest price gains:
According to the latest forecast from the California Association of REALTORS®, the median home price in California is projected to rise about 3.6% in 2026 to around $905,000, continuing a trend of moderate growth rather than dramatic spikes.
📈 Slight uptick in sales:
Home sales statewide are expected to increase by about 2%, with roughly 274,000 homes projected to sell in 2026 — a small improvement as buyer confidence returns.
💰 Mortgage rates easing:
Average 30-year mortgage rates are forecast to fall toward ~6.0%, which could ease monthly payments for many buyers compared to recent years.
📦 Inventory and affordability:
Inventory levels are rising, inching closer to pre-pandemic norms, and housing affordability is expected to tick up slightly — though it remains a challenge for many Californians.
✨ What this means for you:
✔ Buyers: More options and less pressure than in the past couple of years.
✔ Sellers: Still strong markets, but pricing strategy is more important than ever.
✔ Investors: Look for value in balanced markets with rising inventory and steady demand.
