The California housing market is entering a new phase of steady, measured growth. Projections show home prices will rise at a modest ~3% to ~4% annually through 2028, a welcome shift from the unpredictable surges of recent years. With active listings now at ~156,300 homes, buyers across California—especially in Southern California, where I focus—are finding more options and less pressure, as inventory is expected to keep building through 2027.
That said, affordability remains the defining challenge: only about 18% of California households qualify for a typical mortgage, down sharply from ~31%. This keeps entry-level homes fiercely competitive, with most properties still selling near 100% of asking price. Meanwhile, 30-year fixed rates are steady at around 6%, and this range is expected to hold.
In major markets like Los Angeles County, a full return to previous sales activity may take until after 2028, while the broader state outlook points to predictability—a value I always prioritize in guiding clients’ decisions. As always, my approach is rooted in clear communication and careful planning to help you navigate these evolving conditions with confidence.
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