MARCH 2026 #16
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Southern California Market Outlook: What to Expect in 2026
Southern California Market Outlook: What to Expect in 2026
As we approach the end of the first quarter of 2026, we should begin to see a slight increase in inventory across Southern California. Not a flood of homes hitting the market, but enough new listings to give buyers a few more options.
Moving into the second and third quarter, more homes entering the market will likely bring more buyers back as well. Some buyers who paused their search due to interest rates or uncertainty may start re-engaging as conditions stablilize.
Mortgage interest rates may ease slightly this year, which could improve affordability for some buyers. But as we've seen over time, home values in Southern California tend to appreciate gradually – often in 2-4% range year over year.
*These stats are provided by CRMLS for all Residential type homes in the entire MLS between 2021 - 2025.
Dec 2021: $748,000Dec 2022: $725,000Dec 2023: $770,000Dec 2024: $815,000Dec 2025: $800,000
So while rates may improve, rising home values and increasing demand could bring more competition back into the market.
In other words, as we move deeper into the year, buyers may find themselves competing more for the homes they want – especially as we head into the stronger spring and summer markets.
If there's one thing the market continues to teach us, it's that waiting for the "perfect" moment rarely works. Conditions shift, opportunities appear, and the other people who are prepared are the ones who benefit when they do. As we move through 2026, clarity, preparation, and good guidance will matter for more than perfect timing.
Dec 2021: $748,000Dec 2022: $725,000Dec 2023: $770,000Dec 2024: $815,000Dec 2025: $800,000
So while rates may improve, rising home values and increasing demand could bring more competition back into the market.
In other words, as we move deeper into the year, buyers may find themselves competing more for the homes they want – especially as we head into the stronger spring and summer markets.
If there's one thing the market continues to teach us, it's that waiting for the "perfect" moment rarely works. Conditions shift, opportunities appear, and the other people who are prepared are the ones who benefit when they do. As we move through 2026, clarity, preparation, and good guidance will matter for more than perfect timing.
Victor Nguyen
Sales Director, Realtor® DRE.01935142
FirstTeam® Mission Group
657.390.1998 / victor@missiongrouprealty.com
"Building lifelong relationships through trust, knowledge, and a
commitment to helping clients achieve their real estate goals—one step at a time.”
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