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| California Assoc of REALTORS 2026 Prediction |
Resale volume is still under the 2021 level, and in 2026 will be projected to 274,400 units, well under the 444,500 level of 2021, but ahead of the 2025 level of 269,000 units.
Per the California Association of REALTORS:
"Inflation will likely pick up in the next 12 months, but the annual average Consumer Price Index (CPI) for 2025 will dip slightly to 2.8 percent, before bouncing back up to an average of 3.0 percent next year. The average 30-year, fixed mortgage interest rate will moderate slightly to 6.6 percent in 2025 but will decline more solidly to 6.0 percent in 2026. While next year’s projected average for the 30-year fixed mortgage interest rate will still be higher than the levels observed in the few years prior to the pandemic, it will be lower than the long-run average of nearly 8% in the past 50 years." (Per Bankrate: September 18, 2025, the current average 30-year fixed mortgage interest rate is 6.23%.)
Housing affordability is expected to inch up to 18 percent next year after edging up to a projected 17 percent in 2025 from 16 percent in 2024.
“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,” said C.A.R. Senior Vice President
and Chief Economist Jordan Levine. “However, mounting headwinds such as
the ongoing trade tensions between the U.S. and its trading partners,
the home insurance crisis, and a potential stock market bubble will
remain challenges for the housing market in upcoming year,” Levine
continued.
The complete Market Forecast will be posted soon on the CAR website.
Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996
