📊 Quick Take

The housing market continues to show signs of stabilization as we head into spring 2026:

• Home prices are holding steady with slight increases month-over-month and year-over-year
• Inventory is gradually rising, with a surge in new listings entering the market
• Existing home sales have rebounded slightly but remain below last year’s levels

📉 Falling Mortgage Rates Are Improving Affordability

Despite relatively stable home prices, declining mortgage rates are making homeownership more attainable.

• Median home price (February): $398,000
• Year-over-year price change: +0.30%
• Average 30-year mortgage rate: 6.11% (down from 6.89%)
• Monthly payment: $1,952 (↓ $165 YoY)

Lower rates are easing financial pressure and could encourage more buyers to re-enter the market in the coming months.

🌸 Spring Surge: New Listings Are Rising Fast

Spring is bringing a wave of new inventory:

• 439,000 new listings in March
• +21.21% month-over-month growth
• Total inventory: 1.29 million homes

This increase gives buyers more choices—but inventory is still below what’s considered a fully healthy market.

📈 Existing Home Sales Show Signs of Recovery

After a slow start to the year:

• February sales: 4.09 million homes
• Monthly increase: +1.74%
• Year-over-year: -3.99%

Buyers remain cautious, possibly waiting for further rate drops or more listings before making decisions.

⚖️ A Market Moving Toward Balance

The market is gradually shifting away from extreme seller dominance.

• Inventory is increasing
• Buyer activity is slowly picking up
• New listings are entering at a strong pace

This suggests a transition toward a more balanced housing market, though future rate changes could quickly shift conditions again.

📍 The Local Lowdown: Southern California Trends

🔍 Quick Take

• Prices are diverging across the region
• Inventory is rising everywhere
• Homes are selling faster than earlier this year
• Market conditions vary by location

💰 Home Prices: A Story of Divergence

• San Diego: $1,050,000 (+0.96% YoY)
• Los Angeles: $842,660 (-1.12% YoY)
• Orange County: $1,432,500 (-2.25% YoY)
• Riverside: $631,000 (-2.45% YoY)

San Diego remains strong, while other markets are seeing price softening.

🏘️ Inventory Continues to Build

Year-over-year inventory growth:

• Los Angeles: +10.33%
• Orange County: +7.00%
• Riverside: +6.70%
• San Diego: +5.40%

This seasonal increase reflects sellers entering the market for spring.

⏱️ Homes Are Selling Faster Again

• San Diego: 18 days (-37.93% MoM)
• Orange County: 24 days (-31.43%)
• Los Angeles: 32 days (-15.79%)
• Riverside: 50 days (no change)

Momentum is picking up, signaling renewed buyer activity.

⚖️ Market Conditions by Area

Measured by Months of Supply Inventory (MSI):

• San Diego: 3.2 months → Balanced
• Orange County: 3.5 months → Near balanced
• Los Angeles: 4.2 months → Buyer’s market
• Riverside: 4.7 months → Buyer’s market

Conditions vary significantly depending on location.

🔮 What This Means for Buyers & Sellers

For Buyers:

• More inventory = more choices
• Lower rates = improved affordability
• Less competition than previous years

For Sellers:

• Faster-moving listings (in many areas)
• Pricing strategy is more important than ever
• Market conditions vary by region

🏁 Final Thoughts

The 2026 housing market is entering a transitional phase. With falling mortgage rates, rising inventory, and cautious buyer activity, we’re seeing early signs of a more balanced and sustainable market.

The big question:
👉 Will lower rates bring buyers back in full force—or keep the market steady?

📣 Thinking About Buying or Selling?

Now may be the perfect time to make your move. With shifting conditions, having the right strategy is key to maximizing your outcome.