C.A.R. 2026 Housing Outlook: A Calmer, More Strategic California Market Ahead

January 13, 2026
|In Uncategorized
|By Corin Clement

The California Association of Realtors® is forecasting a modest but meaningful recovery in 2026. With mortgage rates easing and affordability inching upward, the market is expected to feel less frantic and more balanced, giving both buyers and sellers room to be strategic.

What Agents Need to Know for 2026:

📈 Market Snapshot

  • Median Home Price: Up 3.6% to a record $905,000

  • Existing Home Sales: Up 2% to approximately 274,400 units

  • Affordability Index: Improving to 18%

  • Mortgage Rates: Expected to trend lower, potentially near 6%

🏡 What’s Driving the Shift

  • Improving Affordability: Slightly lower rates and slower price growth help ease monthly payments.

  • Steady Price Growth: A healthier, more predictable pace—less volatility.

  • More Buyer Leverage: Buyers gain flexibility compared to recent seller-dominated years.

  • Rising Inventory: Active listings projected to increase by nearly 10%.

📍 Regional Watch

  • Coastal luxury markets (South Bay through San Diego) are expected to outperform the statewide average.

🔍 Bottom Line
2026 is shaping up to be a calmer, more calculated market—one that rewards informed pricing, strong negotiation skills, and thoughtful strategy. A positive shift for agents who know how to guide clients through a more balanced landscape.