The Robin Report
Housing Market 2026 Outlook
Following an essentially flat housing market in 2025, California home sales are forecast to inch up in 2026 according to a forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
The California median home price is forecast to rise 3.6 percent. Despite softening home prices in recent months, lower interest rates and slightly improved housing affordability will give room for prices to move up in the coming year.
“Home prices in California are expected to rise in 2026, but the growth pace will remain mild when compared to rates we’ve seen in past years,” said C.A.R. President Heather Ozur. “For would-be buyers who sat out the competitive market during the past couple of years, that means more opportunities for buyers as inventory increases moderately, and lending conditions become more favorable. Seller confidence will also improve as home prices stabilize, and demand begins to rise again next year after a slow 2025.”
The average 30-year, fixed mortgage interest rate will moderate slightly to 6.6 percent in 2025 but will decline more solidly to 6.0 percent in 2026.
“Housing sentiment will see some improvement in 2026,” said C.A.R. Chief Economist Jordan Levine. “However, mounting headwinds such as the ongoing trade tensions between the U.S. and its trading partners, the home insurance crisis, and a potential stock market bubble will remain challenges for the housing market in upcoming year.”
If you are thinking about moving, Robin and Les Wrigley would be glad to meet with you and discuss your options.
Robin & Les Wrigley
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650.483.7661
