California’s housing market is expected to bounce back according to a new forecast from the CALIFORNIA ASSOCIATION OF REALTORS(C.A.R.).
The association expects that sales of existing single-family homes will increase 3.7%. Contractors and remodelers can expect faster turnover of older homes and increased demand for upgrades.
The median home price is also expected to grow, up 1.4% to $894,400. With California in particular facing tight supply, the demand supports the continued home price elevation from $875,600 in 2025.
“We’ll start to see market conditions move in a more positive direction for California homebuyers and sellers next year,” said C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. “At the same time, an improved but still limited availability of homes for sale will contribute to continued strength in home prices. As confidence picks up and mortgage rates ease, we expect more people who have been waiting on the sidelines to make their move in 2027.”
