California’s housing market is finding its footing, with home prices projected to increase at a modest pace of about 3–4% per year through 2028. This signals a shift toward more predictable, steady growth, rather than the dramatic surges we’ve seen in the past. For those of you exploring your options, active listings have reached approximately 156,300 homes—providing buyers with greater choice and easing some of the urgency that’s often felt in our market. Inventory is expected to continue building through 2027, which could help create even more opportunities down the road.
Still, affordability remains the biggest challenge: only around 18% of California households now qualify for a typical mortgage, down from about 31%. This keeps entry-level homes especially competitive. Despite these hurdles, homes are still selling close to 100% of their asking price, and 30-year fixed mortgage rates are holding steady around 6%—a trend likely to remain for the foreseeable future.
It’s worth noting that larger urban markets—like Los Angeles County—may take until after 2028 to return to previous sales paces. As someone who has helped many first-time homebuyers and investors navigate changing markets, I know how important it is to move forward with clear information and a well-planned strategy. Predictability in our market is a welcome development, and I’m committed to guiding my clients through each step with the experience and dedication you deserve.
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