IE Business Daily Business news for the Inland Empire.
Sales of existing single-family homes in California are expected to reach 274,400 units in 2026, a two percent increase on last year’s projection if that forecast proves to be true, according to one of the state’s largest real estate trade groups.
The state’s median home price is expected to rise 3.6 percent, to $905,000, larger than the one percent increase – to a median price of $873,900 – predicted one year ago by the California Association of Realtors.
The Los Angeles-based trade group also predicts that 18 percent of the state’s households will be able to afford a median-priced home next year, up from a 17 percent projection in for this year.
Lower interest rates, and a slightly more affordable housing supply, will make it possible for home prices to climb in 2026.
“Home prices in California are expected to rise in 2026, but growth will remain mild compared to the rates we’ve seen in past years,” said Heather Ozur, association president and a Palm Springs realtor, in the statement. “That means more opportunities as inventory increases moderately, and lending conditions become more favorable. Seller confidence will also improve as home prices stabilize.”
California’s housing supply will improve in 2026, with active listings up close to 10 percent compared with this year, the association predicts.
