The real estate market in Southern California is starting to pick up again this spring. Mortgage rates are stabilizing around 6%, and more homes are slowly coming onto the market.

Experts say the market is adjusting and becoming more balanced for both buyers and sellers.

Key Market Facts
Mortgage Rates

The average 30-year mortgage rate is between 5.87% and 6.27%.
This is much lower than the 7–8% rates we saw in 2023.
If rates stay close to 6%, more buyers may enter the market.
Home Prices

Prices are mostly stable or rising slowly.
The California median home price is expected to be about $905,000 in 2026, up 3.6% from 2025.
Los Angeles median price: about $1,149,000
Orange County median price: about $1,200,000
Inventory and Time on Market

There are more homes for sale, but they are taking longer to sell.
About 33,000 homes are currently active in Southern California.
The average home is taking about 91 days to sell.
Price Reductions

About 1 out of 10 homes in Los Angeles had to lower the price.
This means sellers need to price homes correctly to attract buyers.
What’s Happening in Different Areas
Los Angeles & Orange County

The market is moving at two different speeds.
Well-priced luxury homes are still selling quickly.
Overpriced homes are sitting longer.
Inland Empire (Riverside & San Bernardino)

Prices dropped a little in 2025.
Prices may increase about 1.6% in 2026.
San Diego

Very few homes available.
Demand is still strong, but high prices make it harder for buyers.
What Experts Expect for 2026
Home sales could increase about 2% this year.
More homeowners may finally sell as they slowly move away from their very low 3% mortgage rates.
Buyers have more choices and more negotiating power than in the last few years, but prices are still high.