Inventory is growing, rates are easing, and local trends are clearer, making the California market more balanced and easier to navigate in 2026.
One of the biggest questions people are asking right now is how the real estate market is actually doing. Even if you are not planning to move this year, what is happening in the housing market still affects you. The impact is not always obvious at first, but it often shows up later, after a decision has already been made.
That’s why understanding the market in 2026 matters, even for homeowners who plan to stay put.
Many homeowners are at a familiar crossroads. Recently, I spoke with a couple who have owned their home for several years. Their family is growing, they have built solid equity, and they are trying to decide what comes next. Like many homeowners, they are weighing whether it makes sense to upgrade, refinance, or stay where they are.
These are common questions right now, and they’re not easy to answer when the information people see feels inconsistent.
National headlines create confusion, not clarity. The biggest challenge they shared was the noise coming from the news. One headline claims prices are falling, while another warns that mortgage rates are out of control. That kind of mixed messaging leaves people feeling stuck. National headlines often miss the mark because they don’t reflect what is happening in specific local markets. Real estate decisions are local, and broad national data rarely tells the full story.
Local markets are sending clearer signals in 2026. The good news is that the 2026 housing market is becoming easier to read at the local level. In areas like Long Beach, Lakewood, and Signal Hill, trends on the ground matter far more than what is happening nationally. Right now, those local trends are starting to make more sense.
Inventory is growing, and pressure is easing. One of the clearest signals is inventory. Realtor.com expects the number of homes for sale to grow by nearly 9 percent this year. That increase matters because it brings more choice and reduces the intensity buyers and sellers have felt in recent years. More inventory creates fewer surprises and allows decisions to feel more measured.
"National headlines often miss the mark because they don’t reflect what is happening in specific local markets. "
Mortgage rates are becoming more workable. Mortgage rates are also moving in a more stable direction. They are not dropping fast, but they are easing steadily. Forecasts suggest that rates in 2026 may average around 6.3 percent, slightly lower than last year, following the Fed’s recent rate cut.
While the ultra-low rates of the past are not returning, this range is more manageable for many buyers and homeowners.
As a result, buyers are slowly returning to the market, and homeowners who bought during higher-rate periods may begin to see refinancing opportunities open up. The market feels more balanced than it has in several years.
Not all neighborhoods are moving the same way. Inventory growth is not even across every area. Neighborhoods like Belmont Heights, Belmont Shore, Alamitos Heights, and Cal Heights remain tight, while Lakewood moves at its own pace, and Signal Hill continues to follow its own pattern. In a market like this, your zip code tells you far more than any national headline ever could.
Condition matters more than ever. Move-in-ready homes continue to attract the most attention. Updated homes sell faster and often receive stronger offers, while homes that need work are sitting longer. Buyers are cautious, and that hesitation shows up quickly for sellers. Small updates can make a meaningful difference, and buyers need to be prepared when the right home becomes available.
Technology helps, but experience still matters. Technology is now part of real estate. More than a third of Realtors use AI tools to analyze data and spot trends. These tools provide useful numbers and patterns, but they cannot replace context, strategy, or negotiation. The strongest decisions in 2026 come from combining smart tools with experienced judgment.
Navigating the real estate market in 2026 does not have to feel confusing. With the right information and a clear understanding of what is happening locally, it becomes much easier to make smart decisions.
If you’re thinking about buying, selling, refinancing, or simply want to understand how the market affects you, feel free to call or text me at 562-316-2915 or email [email protected]. I'd be happy to guide you through your options and help you understand what makes the most sense for your situation.
