March 2026 Market Update: What Buyers & Sellers Need to Know

The Greater Los Angeles housing market is entering 2026 in a state of balance, with shifting opportunities for both buyers and sellers. While mortgage rates are declining, buyer activity remains cautious, creating a market that could move in either direction in the coming months.

📊 Quick Market Snapshot

• Home prices are holding steady year-over-year

• Mortgage rates have dropped significantly, improving affordability

• Inventory is rising, giving buyers more choices

• Buyer activity remains slow but watchful

💰 Lower Mortgage Rates Are Boosting Affordability

One of the biggest shifts in today’s market is the drop in mortgage rates. The average 30-year rate has fallen to 6.16%, down from 6.91% last year.

What does this mean for buyers?

• Monthly payments are down about $168/month

• Median monthly payment: $1,959

• More buyers can now afford to enter the market

However, despite improved affordability, many buyers are still waiting—likely hoping for even lower rates.

🏡 Home Prices Remain Stable

The median home price sits at $396,800, showing:

• A slight 0.86% increase year-over-year

• A small monthly dip

This stability suggests the market has found a temporary equilibrium between supply and demand.

📈 Inventory Is Growing Ahead of Spring

As we move into the spring season:

• New listings are up 10% month-over-month

• Total inventory reached 1.22 million homes

• Year-over-year inventory is up 3.39%

This increase gives buyers more options—but inventory is still below what’s needed for a fully balanced market.

⏳ Buyers Are Still Taking Their Time

Even with better affordability:

• Existing home sales are down 4.4% year-over-year

• Sales dropped 8.43% month-over-month

Buyers are clearly being cautious, taking longer to make decisions and waiting for ideal conditions.

🔮 What’s Next for the Market?

The market could shift in either direction:

✔ If rates continue to fall → Buyer demand may surge
✔ If buyers remain hesitant → Inventory may continue to build

Spring will be a critical season to watch.

📍 Local Lowdown: Southern California

💵 Mixed Price Trends Across the Region

• San Diego: +1.94% (strong growth)

• Los Angeles: -0.75%

• Orange County: -1.40%

• Riverside: -0.86%

👉 San Diego is leading, while other areas are seeing slight corrections.

📦 Inventory Is Rising Everywhere

• Los Angeles: +10.13% YoY

• Orange County: +9.13%

• Riverside: +7.53%

• San Diego: +5.70%

More homes = more negotiating power for buyers.

🕒 Homes Are Taking Longer to Sell

• Riverside: 50 days

• Los Angeles: 38 days

• Orange County: 35 days

• San Diego: 29 days

Buyers are exploring more options before committing.

⚖️ It’s Officially a Buyer’s Market

All major Southern California markets have shifted into buyer’s market territory:

• Riverside: 5.6 months supply

• Los Angeles: 4.5 months

• San Diego: 3.6 months

• Orange County: 3.4 months

This means:
👉 Buyers have more leverage
👉 Sellers need stronger pricing and strategy

🏁 Final Thoughts

The 2026 housing market is all about timing and strategy.

• Buyers: You have more options and negotiating power

• Sellers: Pricing correctly and preparing your home is key

As always, real estate is local—so understanding your specific market is crucial.

📩 Thinking About Buying or Selling?

Let’s create a strategy that works for your goals in today’s evolving market.

Contact us today for expert guidance and personalized advice.