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As we close out 2025, the Southern California real estate market looks different than it did just a year ago—but in many ways, we’re seeing the early signs of balance returning. Interest rates have eased from their peak, more homeowners are re-entering the market, and buyers who sat on the sidelines in 2024 and early 2025 are finally making their move.
If you’re thinking about buying or selling in 2026, here’s what this year’s activity means for you.
2025 in Review: A Transitional Year for Real Estate
After several years of volatility, 2025 became a true transition year. Rates declined gradually, inventory opened slightly, and the extreme bidding wars of the pandemic market calmed into a more predictable rhythm.
Key Trends We Saw in 2025:
1. Interest rates eased but remained higher than historic lows
Buyers adjusted to the “new normal” of mid–5% to low–6% mortgage rates. This helped restore confidence and bring more movement to the market.
2. Inventory improved—but only slightly
Many homeowners with 2–3% rates continued to stay put, keeping inventory tight. However, move-up sellers began returning, especially in Q3 and Q4.
3. Buyers became more strategic
Value, condition, and location mattered more than ever. Buyers focused heavily on updated homes and properties priced correctly from day one.
4. Sellers who priced realistically won
Homes listed with strong presentation—clean, staged, updated—continued to command top dollar.
Looking Ahead to 2026: What Buyers & Sellers Should Expect
2026 is shaping up to be one of the most opportunity-filled years we’ve seen since 2019. Here’s what the data and current conditions point toward:
1. Increased Inventory
As rates stabilize, more homeowners are expected to move — especially retirees, investors repositioning portfolios, and families upsizing.
2. Continued Price Growth (but gradual)
We’re unlikely to see double-digit growth, but steady appreciation in well-located SoCal neighborhoods is expected.
3. Strong demand in coastal and lifestyle-focused markets
Many communities like Long Beach, Lakewood, Cerritos, Huntington Beach, Seal Beach and Buena Park’s Flower Tract should remain highly desirable.
4. More balanced negotiations
Buyers may see more closing cost credits, rate buydowns, and repair negotiations return—while sellers still benefit from strong values.
5. A strong early-year market
Historically, years after rate drops see powerful Q1 and Q2 activity. Expect early 2026 to move quickly.
What This Means for You
If You’re Planning to Sell in 2026
- Start prepping your home now (paint, flooring, landscaping go a long way).
- Consider a January or February launch for maximum buyer demand.
- Get a professional valuation to understand your equity position.
If You’re Planning to Buy in 2026
- Get pre-approved early—you’ll be ahead of the spring rush.
- Watch neighborhoods you’re interested in (I can set up alerts).
- Be ready to move quickly when the right home appears.
Final Thoughts
2025 brought stability. 2026 will bring opportunity.
Whether you’re thinking of selling, buying, investing, or planning a long-term move—starting the conversation now puts you in the strongest possible position.
I’m here to guide you every step of the way.
Sheri Schuster
Coldwell Banker Realty
Top 1.5% Nationwide
Your Realtor for Life Since 1999
