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California’s remarkable home equity landscape continues to shape household wealth in unique ways. With median home equity at $550,000 and median household net worth at $273,800 (after accounting for debts and non-housing assets), the numbers tell a compelling story: for many Californians, a significant portion of their wealth is tied directly to their property. This dynamic can make homeowners equity-rich but sometimes less liquid, as high home values often outpace other financial holdings.

As someone who’s guided clients through California’s evolving markets for nearly two decades, I’ve seen how understanding your equity position is key to making informed decisions—whether that means considering refinancing options, thinking about downsizing, or evaluating new opportunities for diversification. California’s high home equity reflects both a resilient market and the importance of balance in your overall financial picture. Trust, clarity, and strategic planning remain essential as you navigate how your property fits into your broader wealth goals.

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.

As we move through mid-Q3, the landscape for buyers is shifting: sellers offered concessions in approximately 45% of U.S. home sales—a new high for this time frame since 2020. This marks an increase from about 43% a year ago, reflecting how buyers have gained more leverage amid higher inventory and less competition nationwide. These concessions range from assistance with repairs and closing costs to mortgage-rate buydowns, giving buyers additional options to manage their total purchase expenses beyond direct price reductions. Increasingly, sellers are tailoring deals through closing-cost credits and rate buydowns, which is transforming negotiations and introducing more flexibility for buyers. Notably, around 16% of homes sold in mid-Q3 included both a price reduction and a concession, presenting another valuable avenue for buyers to lower their entry costs. Having guided clients through various market cycles from San Diego to Hawaii and back, I know how important it is to navigate these evolving trends with clarity and strategy—ensuring you understand every option on the table.

Housing affordability in the US is being shaped by some key factors this fall. As someone who’s helped clients navigate both brisk and challenging markets from Oahu to San Diego, I’m seeing how recent trends are creating both hurdles and openings for buyers and sellers alike. While there are early signs of housing disinflation—think sellers offering more concessions and some potential savings for motivated buyers—the largest challenge remains borrowing costs. Treasury yields are hovering near 5%, and the average 30-year mortgage rate has moved above the low-7% range. For the four weeks ending September 13, the median monthly mortgage payment climbed to approximately $2,600—a 3% rise over the previous year—showing just how much financing continues to impact affordability.

At the same time, the resale market is tight. Many homeowners are holding onto low-rate loans, which keeps inventory limited, while sellers are still aiming for pandemic-level prices in many transactions. Industry experts are describing the current environment as a correction toward stability, not a crash, thanks to strong homeowner equity and sound lending practices. In my experience, even in a complex market, there are meaningful opportunities for well-informed buyers and sellers. My focus is on helping clients make strategic decisions grounded in trust and long-term perspective.