10/15/2026
California Housing Market Settles Into Steadier Growth
After more than three decades guiding clients through California’s changing real estate landscape, I’m encouraged to see the market moving into a steadier phase. Home prices statewide are projected to grow at a modest 3% to 4% annually through 2028—a welcome change from the rapid surges of previous years. Inventory has improved, with about 156,300 homes on the market, which means buyers now have more options and less pressure as supply is expected to continue growing into 2027.
Affordability remains a real challenge: only about 18% of California households currently qualify for a typical mortgage (down from 31%). This keeps competition especially fierce for entry-level homes, something I see firsthand in San Jose and nearby communities. Homes are still selling very close to their asking price, and 30-year fixed mortgage rates have held near 6%, with expectations that they’ll remain around that level.
It’s worth noting that major urban areas like Los Angeles County may not return to their previous sales pace until after 2028, while the broader California market continues to move toward predictability. Whether you’re buying your first home, exploring investment opportunities, or navigating a distressed property, a steady market offers new possibilities—and I’m here to help you make the most of them.
