California Housing Market Forecast for the Next 2 Years: 2026-2028

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Looking ahead to 2026-2028, California’s housing market appears to be settling into a period of steady growth, with annual price increases projected between 2.5% and 4%. Inventory is rising and mortgage rates are leveling out, offering buyers a bit more flexibility in their search. Yet, affordability remains a significant challenge—especially for those seeking entry-level homes or exploring more affordable neighborhoods. In my experience guiding families and fiduciaries through complex sales in Los Angeles County, I’m seeing these trends shape both the options and decisions facing sellers and buyers. Whether you’re managing a property transition after a loss or preparing for a move to assisted living, understanding where the market is headed helps you make informed choices during times that matter most.

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