Author: Carol Smith

As someone who's spent over 15 years guiding buyers and sellers through California’s unique real estate landscape, I see firsthand how home equity shapes the financial lives of local families. Recent data shows California ranked second in the nation with median home equity at $550K, while the median household net worth stands at $273.8K after factoring in debts and non-housing assets. It’s a powerful reminder: here in California, owning a home often means being equity-rich, even if that doesn’t always translate to having a lot of cash on hand. High home values can boost your net worth, but when most of your wealth is tied up in your home, it can limit your options when life’s plans change. That’s why I always encourage clients to understand how much of their wealth is tied to property—it’s the key to making informed decisions about refinancing, downsizing, or even diversifying your assets. California’s strong equity levels highlight both opportunity and risk for homeowners. It’s all about finding the right balance to support the life you want to build.

California’s latest move to streamline approvals for small-lot subdivisions is an interesting step toward increasing homeownership opportunities—something I’m always watching closely as a Realtor in our High Desert communities. The state law now allows for a 60-day ministerial approval process for qualifying infill sites—up to 10 homes—when certain requirements are met. That means projects can move forward without environmental review or public hearings, potentially speeding things up for both buyers and developers.

Here’s what stands out: in multifamily zones, new small lots need to be at least 600 sq-ft each, and the average home size is capped at 1,750 net habitable sq-ft. For the 10-unit limit, multifamily zones exclude ADUs and JADUs, while single-family zones exclude only JADUs. Los Angeles was ahead of the curve with its local ordinance encouraging more compact ownership options, and now the rest of the state is following suit. While the law’s goal is to open up more paths to homeownership, it’s still an open question whether these projects will truly serve as accessible starter homes. More recent changes have also made it possible to redevelop vacant single-family lots.

Every shift in housing policy impacts our local market, and I believe in helping clients navigate these changes with clarity and confidence. If you’re curious how these updates might affect your plans to buy, sell, or invest, I’m here to offer clear guidance every step of the way.

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.

Navigating the High Desert market means staying on top of the latest trends, and recently, I’ve seen price reductions reach 20.4% of active listings nationally. Homes going under contract slipped by less than 1% in Mid-Q3, which ended an eight-month streak of steady gains as higher borrowing costs put pressure on buyers. The average 30-year fixed mortgage peaked around 6.7% early in the quarter, remained high for several weeks, and wrapped up more than 20 basis points above where it started. Despite this, our market activity stayed resilient: the national median list price dropped to $424,500, active listings climbed by about 4%, and new listings edged down just a bit. Fewer sellers chose to step back—delistings fell around 13%—and the slower pace gave buyers a bit more time and flexibility. Sellers who priced strategically still found success. As we look ahead, it’s clear that steadier mortgage rates could be just as important as lower ones. If rates hover near 6.7%, we may see more price adjustments or listings pulled from the market. I’m committed to helping my clients make informed decisions, no matter how the numbers shift—because real estate isn’t just about properties, it’s about building the life you envision.

Timing can make all the difference when it comes to finding the right home—especially here in the High Desert, where informed choices lead to rewarding outcomes. According to recent national data, the week of September 27 to October 3 in 2026 is expected to offer buyers a rare combination: a stronger selection of listings (up 31.9% since the year’s start and 13.3% higher than an average week), reduced competition (down 30.1% from the yearly peak), and homes staying on the market a bit longer—around 64 days. That extra breathing room, along with listing prices projected to be 3.5% below seasonal highs (about $14,000 in potential savings on a median-priced $416K home), means buyers may find more flexibility and choice. As someone who guides clients through every step, I always emphasize the power of timing and preparation—whether you’re searching for your first home, the ideal horse property, or a strategic investment. Early fall could expand your options, while later fall might open up more price negotiation. Every move is about more than just a transaction; it’s about building the future you envision, with the support and expertise you deserve.

Seeing the U.S. housing market find its footing again—albeit slowly—reminds me just how much patience and perspective matter in real estate. Active inventory rose about 4% year-over-year, but notably, this growth eased for the first time in over a month, hinting at a gentle shift toward a more balanced, buyer-friendly market without a sudden influx of listings. Homes continue to spend an average of 61 days on the market, the same pace as last year and in line with the typical late-Q3 slowdown we expect after the busier start to 2026. New listings dipped roughly 1% from last year, bringing us back to 2025 levels as affordability concerns keep both buyers and sellers weighing their options carefully. The median listing price held at $419K—down about 1% year-over-year—while price per square foot slipped to $222, the lowest since early this year. Even as inventory edges upward and mortgage rates remain elevated, the national market isn’t changing overnight; it’s moving at a measured pace that gives buyers and sellers time to make informed decisions. In our High Desert community, I find that understanding these broader trends—and how they translate locally—helps my clients feel confident as they navigate their next move. Real estate really is about building the life you envision, and I’m committed to making that journey as smooth and rewarding as possible.