We’re seeing a welcome shift in the California housing market—one that favors steadier, more sustainable growth. Projections show home prices rising modestly at about 3% to 4% annually through 2028. Instead of dramatic spikes, this points to a more predictable environment for both buyers and sellers. Currently, there are roughly 156,300 active listings, providing increased choice and a little less pressure for those searching for a home, with supply expected to continue building well into 2027.
Affordability, though, remains a real challenge: only about 18% of California households now qualify for a typical mortgage, down sharply from 31%. This keeps entry-level homes especially competitive—a dynamic I’ve seen firsthand in many communities I serve. Homes continue to sell close to 100% of asking price, while 30-year fixed rates are holding steady around 6% and are likely to remain there for some time.
Major urban centers like Los Angeles County may take until after 2028 to regain their previous sales momentum, but overall, California’s housing landscape is settling into a more predictable pattern. As always, my priority is to help clients navigate these shifts with clarity and confidence, grounded in nearly two decades of experience across evolving markets.
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