California’s housing market is finding its footing, with home prices projected to rise at a steady pace—about 3% to 4% each year through 2028. This shift points to a market that’s less about dramatic surges and more about stable, predictable growth. I’ve noticed that active listings have climbed to around 156,300 homes, offering buyers more options and a little breathing room, as inventory is expected to keep growing through 2027.
Yet, affordability remains a real challenge: only about 18% of California households now qualify for a typical mortgage, down sharply from 31%. That keeps the competition especially fierce for entry-level homes, where every offer counts. Properties are still selling for close to full asking price, with 30-year fixed mortgage rates holding near 6%—a trend likely to continue.
In larger urban areas, like Los Angeles County, it may take until after 2028 to return to the brisk sales activity we’ve seen in the past. But, across California, we’re seeing conditions that favor thoughtful planning and long-term vision. My approach is always rooted in helping clients navigate these shifts with clear information and honest guidance, so each decision supports the bigger picture you have in mind for your future.
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