California Home Sales and Prices Forecasted to Rise in 2026

A new forecast published by the California Association of Realtors (CAR) is predicting existing single-family home sales across the state will reach a total of 274,400 unites, a 2% increase from this year’s projected sales of 269,000. The projected 2025 sales figure is a scant 0.1% lower compared with the pace of 269,200 homes sold in 2024.

CAR is also predicting the state’s median home price will rise by 3.6% to $905,000 in 2026, following a projected 1% increase to $873,900 in 2025 from $865,400 in 2024. Housing supply in 2026 is forecast to show continued improvement and remain near pre-pandemic levels, with active listings up by nearly 10% amid stabilizing market conditions.

“Home prices in California are expected to rise in 2026, but the growth pace will remain mild when compared to rates we’ve seen in past years,” said CAR President Heather Ozur, a Palm Springs Realtor. “For would-be buyers who sat out the competitive market during the past couple of years, that means more opportunities as inventory increases moderately and lending conditions become more favorable. Seller confidence will also improve as home prices stabilize and demand begins to rise again next year after a slow 2025.”

As economic uncertainty begins to clear up in the next 12 months and mortgage rates start declining more consistently in the upcoming quarters, housing sentiment will see some improvement in 2026,” added CAR Senior Vice President and Chief Economist Jordan Levine. “However, mounting headwinds such as the ongoing trade tensions between the US and its trading partners, the home insurance crisis, and a potential stock market bubble will remain challenges for the housing market in upcoming year.