🌴 California Housing Market Outlook:
Brighter Days Ahead for 2025–2026
After months of mixed signals, there are signs of stability — and even cautious optimism — in California’s housing market. Mortgage rates are beginning to ease, affordability is inching upward, and recent moves by the Federal Reserve may give buyers and sellers the boost they’ve been waiting for. While challenges remain, from cautious builders to an uneven job market, the latest data suggests we could be turning the corner toward a steadier, healthier market.
Statewide Outlook: Steady Sales, Gradual Growth
California’s housing market is expected to hold steady in 2025, with existing single-family home sales projected at 269,020, virtually unchanged from last year. By 2026, sales are forecast to rise modestly by 2% to 274,430.
Mortgage rates should help: the average 30-year fixed rate mortgage is expected to ease to 6.6% in 2025, and then drop further to 6.0% in 2026. That, combined with improving affordability, sets the stage for slow but steady price appreciation.
The statewide median price is projected to climb 1% to $873,880 in 2025 before reaching a new high of $905,000 in 2026. Meanwhile, inventory is expected to improve, with active listings rising by nearly 10%, moving closer to pre-pandemic levels.
Fed Cuts Rates: A Shift in Strategy
In its first move of 2025, the Federal Reserve trimmed the federal funds rate by 25 basis points, its first cut in nine months. This signals a shift in focus — prioritizing employment stability while keeping an eye on inflation. Additional modest rate cuts may follow, depending on how the economy performs.
For buyers, this move offers welcome relief and helps set the tone for a softer lending environment heading into 2026.
Recent Market Activity: Signs of Improvement
- Home Sales: August home sales inched up 0.9% month-over-month, though still slightly below 2024 levels. Pending sales provided a glimmer of hope, up 8.3% from July as mortgage rates dropped to a 12-month low.
- Consumer Spending: Retail sales grew 0.6% in August, boosted by back-to-school shopping. Strong consumer spending suggests resilience, but slowing job growth remains a concern.
- New Construction: Housing starts fell sharply in August, with single-family starts dipping to their lowest level in 13 months. Builders remain cautious, weighed down by tariffs, labor shortages, and economic uncertainty.
Bottom Line
California’s housing market is not out of the woods yet, but the path ahead looks more promising than it has in recent years. Lower mortgage rates, improving affordability, and resilient consumer demand are setting the stage for a gradual recovery in sales and prices through 2025 and 2026.
For buyers, opportunities are opening up as affordability improves.
For sellers, demand remains strong enough to support continued — if modest — price growth.
Want to talk strategy or timing for your next move? Let’s connect.
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4700 Clair Del Ave #620
Long Beach, CA 90807
2 Bed | 1 Bath | 779 SF | $385,000
Top-Floor Condo with Pool Views and Garage Parking! Welcome to this nicely updated 2-bedroom, 1-bath top-floor corner condo, offering abundant natural light and serene views of the sparkling pool and spa. Inside, you’ll find a spacious living area with newer dual-pane windows and modern laminate flooring. The open kitchen features white cabinetry, granite counters with a stylish tile backsplash, and gas range — perfect for cooking and entertaining. This home includes two dedicated parking spaces, one in a private garage and another reserved spot. The Clair Del community offers fantastic amenities including a pool, spa, barbecue area, two community rooms (one with a pool table and ping pong, and another available for private gatherings), plus two laundry facilities. With low HOA dues that cover water, trash, gas, and community upkeep, this is an excellent opportunity for convenient and affordable living. Ideally located near Lakewood Country Club, Bixby Knolls, and the Long Beach Exchange (LBX), you’ll enjoy easy access to shopping, dining, and entertainment.
OPEN HOUSE
Saturday (9/27) 2:00 - 5:00 pm
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133 The Promenade N #319
Long Beach, CA 90802
1 Bed | 1 Bath | 910 SF | $524,999
Modern loft style living in the heart of downtown Long Beach!
This wonderfully oversized one bedroom open concept loft style condo in a premium building located at the vibrant center of downtown Long Beach is ready to be yours! Walk to the wonderful shops and restaurants all around the area. Hop onto the light rail and travel all over Los Angeles / Hollywood / LAX and will soon go even as far as Pomona! With the waterfront just minutes away and walk/bike pathway all the way to Belmont Shores, the access possibilities are endless. This loft style condo features an open concept kitchen overlooking the living room and balcony that has the feel of airiness matching the 10 feet high ceiling throughout. Wood flooring with sliding frosted panels featured for the bedroom.
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9451 Harcourt Circle
Huntington Beach 92646
3 Bed | 2 Bath | 1,494 SF | $5,500
Coastal Living with a Pool – Just Minutes from the Beach! Beautifully updated 3-bedroom, 2-bath single-story home located on a quiet cul-de-sac in the desirable Century Shores neighborhood of Huntington Beach. Step inside to an open floor plan with vaulted ceilings, recessed lighting, a cozy fireplace, new modern flooring, smooth ceilings, and fresh paint throughout. The updated kitchen features granite counters, stainless steel appliances, and contemporary cabinetry, perfect for any home chef. Versatile bonus room that can be used as a family room, large great room, office, etc. Enjoy relaxing or entertaining by your sparkling pool. Large back yard and side yard areas are great for gardening. Energy-efficient solar panels help keep electricity costs low, and parking is never an issue with an attached 2-car garage plus a wide driveway that accommodates three more cars. Central heat and AC. This home offers the ideal combination of comfort, convenience, and location—close to shopping, dining, entertainment, parks, and top-rated schools. Best of all, you’re just a quick bike ride from the beach, Downtown Huntington Beach, and Pacific City!
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939 E Appletong St #8
Long Beach 90802
2 Bed | 2 Bath | 900 SF | $2,500
Discover this delightful top floor condo in the heart of Alamitos Beach. Just steps from the beach, East Village, Retro Row, and Shoreline Village, this two-bedroom, two-bathroom gem offers a cozy and inviting living space. Featuring spacious bedrooms with ample closet space, large windows, and retro bathroom tiling, this condo provides comfort and character. The kitchen boasts tile floors and counters, a refrigerator, dishwasher, range, oven, and plenty of storage. The living room opens to a private balcony overlooking the courtyard, while a one-car garage with storage and community laundry facilities add convenience. Enjoy the vibrant local scene with great restaurants, cafes, entertainment, and parks nearby.
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4340 Pixie Ave.
Lakewood, CA 90712
5 Bed | 3 Bath | 2,459 SF | $1,199,000
Beautifully updated 5-bedroom, 3-bath home on a tree lined street in the sought-after Lakewood Mutuals neighborhood! Step inside to find new modern flooring, fresh interior and exterior paint, smooth ceilings, and custom wood shutters that add timeless charm. The open layout features a welcoming living room, a large dining area, and a bright kitchen with white cabinetry, new quartz countertops, and stainless steel appliances. The main level includes three bedrooms and two full baths, including a spacious primary suite with three closets (one walk-in) and a spa-like bath with dual sinks, walk-in shower, and jetted tub. Upstairs, two additional bedrooms and a full bath with walk-in shower provide flexible living space. The backyard is a private oasis with pavers that match seamlessly with the driveway making an expansive area that is perfect for entertaining day or night with ambient lighting, turf play area, or relaxing in the swim spa under the stars. Additional features include central heat and A/C, indoor laundry, and parking for up to 6 cars with a detached 2-car garage and long driveway. Close to Lakewood Country Club, Bixby Knolls, and Long Beach Exchange (LBX), this home offers both tranquility and prime access to shopping, dining, and entertainment.
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6600 Warner Ave. #144
Huntington Beach, CA 92647
1 Bed | 1 Bath | 754 SF | $473,988
Turnkey Coastal Living in Huntington Beach!
This bright and private ground-floor corner unit features 2 deeded parking spaces, 1 bedroom, and 1 updated bath; the one uncovered parking spot and one carport are a rare find! Enjoy a spacious living area with views and access to an extra-large private patio and garden, allowing you to appreciate the coastal weather Huntington Beach has to offer. This bedroom unit is unique in this complex with its added walk-in closet, designed by California Closets to maximize storage. The remodeled kitchen boasts granite countertops, soft-close Shaker cabinets, built in microwave, dishwasher, updated lighting and laminate flooring. Upgrades continue in the bathroom with quartz counters, modern vanity, laminate flooring and updated lighting. Milgard dual-pane windows, an oversized slider, and ceiling fans add year-round comfort. Resort-style amenities include gated entry, pool, spa, fitness center, clubhouse, billiards/game room, BBQs, and lush greenbelts. Prime location near schools, restaurants, shops, Central Park, Central Library, the Equestrian Center, Senior Center, Sports Complex, Bella Terra, Bolsa Chica wetlands; and of course, is just minutes to Bolsa Chica, Sunset, and Huntington State Beaches!
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6859 E Monaco Pkwy.
Orange, CA 92867
4 Bed | 3 Bath | 2,190 SF | $1,189,000
Charming Tri-Level Home in Desirable Serrano Heights!
Nestled near a quiet cul-de-sac in the sought-after Serrano Heights community, this 4-bedroom, 3-bathroom tri-level home offers comfort, space, and style. The welcoming front porch opens to a light-filled interior with large windows, a mix of tile and carpet flooring, ceiling fans, and an open-concept kitchen featuring stainless steel appliances, updated cabinetry, a pantry, and island—perfect for entertaining. The spacious primary suite boasts dual closets, a soaking tub, separate shower, and double sinks. Enjoy peaceful views from your private balcony overlooking the beautifully landscaped backyard with mature trees and plenty of room to create your ideal outdoor oasis. Additional highlights include an indoor laundry room, direct-access two-car garage, and proximity to top schools, shopping, dining, and scenic trails at Santiago Oaks Regional Park.
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800 Pacific Ave. #301
Long Beach, CA 90813
1 Bed | 1 Bath | 702 SF | $305,000
Charming Downtown Condo Just One Block from Pine Ave!
Enjoy the best of downtown living in this beautifully maintained and updated 1-bedroom condo, ideally located just one block from vibrant Pine Avenue. Situated on the third floor, this bright and breezy unit boasts west-facing views, abundant natural light, and refreshing ocean breezes—all while offering peace and privacy with no shared walls in the living room or bedroom. The spacious bedroom features 1920s French doors, walk in closet, and a ceiling fan for added comfort. The generously sized kitchen includes a stainless steel refrigerator and stove, white cabinetry, and a cozy dining area. High ceilings, fresh paint, updated dual pane windows in the living room, and updated flooring throughout add modern comfort to the home’s vintage charm. You'll appreciate the ample storage, with three closets (one large enough for a home office), plus a large assigned basement storage room, and a shared bike locker. The pet-friendly building includes community laundry, and monthly permit parking is available nearby. For buyers looking for an urban loft feel, some of the walls can be opened to reveal exposed brick walls (like the unit above it that recently sold for $400k!). Seller is willing to credit Buyer up to 3% towards Buyer Concessions. Seller is open to selling it fully furnished. Great opportunity for an investor too - Condo was previously rented for $2100 before as a fully furnished monthly rental.
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179 Santa Ana Ave.
Long Beach, CA 90803
3 Bed | 3 Bath | 3308 SF | $1,937,000
Modern Coastal Luxury in the Heart of Belmont Shore!
Prepare to be impressed by this stunning 3-bedroom, 3-bath, four-story contemporary home offering over 3,300 sq ft of sleek, modern living. Located just steps from the best of Belmont Shore, this light-filled residence features an open-concept living area with hardwood floors, a gourmet kitchen with quartz island and stainless steel appliances, and multiple balconies to enjoy the ocean breeze. The luxurious primary suite boasts a double-sided fireplace, spa-like bath with soaking tub, and a custom walk-in closet. Additional highlights include a ground-level entertaining space with bar, private loft, laundry room, solar panels, and a two-car garage with extra parking. Thoughtfully designed for comfort, style, and coastal living, this is a rare opportunity you don’t want to miss!
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3445 S Pacific Ave.
San Pedro, CA 90731
3 Units | 6 Beds | 3 Baths | 2,742 SF | $1,100,000
Prime Triplex Just 2 Blocks from Cabrillo Beach – Ideal for Investors or Owner-Occupants!
Located the desirable Point Fermin are of San Pedro, this well maintained triplex is just steps from Cabrillo Beach and offers an incredible opportunity for investors or owner-users. Each of the three 2-bed, 1-bath units includes in-unit laundry hookups, dual-pane windows, and two parking spaces (garage + driveway). The front unit features a spacious patio with peek-a-boo ocean views, while the top-floor owner’s unit is move-in ready with updated kitchen and bath, laminate flooring, and crown molding. The large shared backyard is perfect for entertaining. Two units are tenant-occupied at below-market rents, with the top rear unit ready for occupancy. Projected gross income is $73,476/year with pro forma potential of $96,000/year. Subject to LA City Rent Control. Enjoy close proximity to beachside amenities, dining, and recreation in this sought-after coastal location!
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1535 E Ocean Blvd #3
Long Beach, CA 90802
2 Bed | 1.5 Bath | 943 SF | $575,000
Beautiful Top-Floor Corner Condo with Peek-a-Boo Ocean View!
Enjoy beachside living in this beautiful 2-bedroom, 1.5-bath condo offering views of Ocean Blvd from its prime top-floor corner location. Just steps from the sand with easy beach access, this home features a spacious living room with gorgeous wood floors and recessed lighting, while the updated kitchen offers granite countertops, white cabinetry, and stainless steel appliances. Located right across the street from the beach with beach access. Rare private garage with remote. Conveniently located close to all of the great restaurants, cafes, and entertainment in downtown Long Beach and Belmont Shore. Don’t miss this chance to live just moments from the beach, bike paths, and ocean breezes!
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1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,420,000
Stunning Remodeled 5-Bedroom Home in Highly Desirable Los Altos! This beautifully remodeled home is nestled on a picturesque tree-lined street in one of Los Altos’ most sought-after neighborhoods. Designed for modern living and entertaining, the open floor plan features hardwood floors, beamed ceilings, and custom paint throughout. The gourmet kitchen boasts sleek white cabinetry, black quartz countertops, a spacious island, and high-end GE Profile stainless steel appliances. Enjoy seamless indoor-outdoor living with a stunning wall of glass-pane doors that open to an entertainer’s patio and a beautifully landscaped backyard. Recent upgrades include a new roof and driveway in 2024, solar system with dual batteries in 2024, and new windows in 2023. Conveniently located near shopping, parks, Trader Joe’s, Cal State Long Beach, and award-winning Minnie Gant Elementary School—this home truly has it all.
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