05/21/2026
📊 CA Market Minute – May 11, 2026
As we head into summer, the latest economic data is showing measured optimism — but also continued caution. Here’s what you need to know:
🏡 Affordability Improving (Slowly)
California’s Housing Affordability Index rose to 22% in Q1 2026 — the highest level in four years.
• Lower interest rates
• Slower price growth
• Higher household incomes
The monthly payment on a median-priced home is down nearly 4% from last quarter and over 6% from a year ago. While affordability remains challenging overall, this is a meaningful step in the right direction.
💼 Job Growth Stabilizing
April marked the second straight month of solid job gains, with 115,000 new jobs added and unemployment holding steady at 4.3%.
🏗 New Home Sales Up
New home sales jumped 7.4% in March, signaling that buyers are active when pricing aligns with value.
📈 Inflation & Construction
Short-term inflation expectations ticked up, though consumers anticipate this may be temporary. Residential construction spending also rebounded in March, particularly in single-family homes and remodeling — both positive signals for supply.
⚖️ The Bottom Line
We’re seeing encouraging trends: improving affordability, steady employment, and active demand. However, elevated interest rates, global uncertainty, and ongoing cost pressures continue to influence buyer and seller decisions.
Real estate remains hyper-local. If you’re wondering how these statewide and national trends are impacting our local market here in CCC, I’m happy to provide insight tailored to your specific goals. 📩 📲Let’s connect and talk strategy.
Laurie Higgins, Broker Associate | DRE 01322819
Dudum Real Estate Group | DRE 01882902