California Real Estate Markets 2026
Market Conditions, Median Prices & Trends Across California
Expert analysis from Better Offers Inc | CA DRE #01902006
California Housing in 2026
California's real estate market in 2026 continues to be shaped by high prices, limited inventory, and regional variation. While coastal markets remain expensive, inland areas offer more accessible entry points for homebuyers.
Mortgage rates have stabilized in the 6-7% range after the volatility of 2022-2024, bringing more predictability to buyer decisions. Inventory remains below historical averages in most desirable markets, supporting home values even as buyer affordability is challenged.
Whether you're buying, selling, or investing in California real estate, understanding local market conditions is essential. Each region below has its own dynamics, price ranges, and opportunities.
Disclaimer: Market data is approximate and subject to change. Median home prices are estimates for 2025-2026 based on recent trends and should not be considered exact valuations. Contact Better Offers Inc for current market conditions and property-specific pricing.
California Market Breakdown
Explore median prices, market conditions, and key neighborhoods across California's major regions
Ventura County (Simi Valley)
Ventura County offers more affordable options than coastal LA while maintaining good schools and quality of life. Simi Valley remains popular with families seeking suburban comfort with reasonable commutes.
Key Areas:
Simi Valley, Thousand Oaks, Camarillo, Oxnard, Ventura
Los Angeles County
LA County remains one of California's most diverse real estate markets, from affordable inland communities to luxury coastal properties. Inventory remains tight in desirable neighborhoods.
Key Areas:
Pasadena, Glendale, Burbank, Santa Monica, Westside, San Fernando Valley
Orange County
Orange County's coastal appeal, top-rated schools, and strong job market keep demand high. Limited inventory and high buyer competition characterize most of the county.
Key Areas:
Irvine, Newport Beach, Huntington Beach, Anaheim Hills, Mission Viejo
San Diego County
San Diego combines coastal living with a strong military and biotech economy. The market varies significantly between coastal and inland communities, with coastal properties commanding premium prices.
Key Areas:
La Jolla, Del Mar, Carlsbad, Encinitas, East County communities
Inland Empire (Riverside & San Bernardino)
The Inland Empire offers California's most affordable major metro area housing, attracting first-time buyers and families priced out of coastal markets. Growth continues as remote work enables longer commutes.
Key Areas:
Riverside, Temecula, Rancho Cucamonga, Corona, Murrieta
San Francisco Bay Area
The Bay Area remains California's most expensive region, though the tech downturn and remote work have softened some markets. SF proper has seen corrections, while suburbs remain strong.
Key Areas:
San Francisco, Oakland, San Jose, Palo Alto, East Bay, Peninsula
Sacramento Metro
Sacramento offers relative affordability with California's capital city amenities. The market has cooled from pandemic-era peaks but remains active with steady government employment and Bay Area relocations.
Key Areas:
East Sacramento, Natomas, Folsom, Elk Grove, Roseville
Central Valley
The Central Valley provides California's most affordable housing, though economic opportunities are more limited than coastal regions. Agriculture and logistics drive the economy.
Key Areas:
Fresno, Bakersfield, Modesto, Stockton, Visalia
Key Trends in California Real Estate
Affordability Challenges Persist
California remains one of the nation's least affordable housing markets. Many first-time buyers are moving inland or considering condos and townhomes as entry points. Down payment assistance programs and creative financing solutions are increasingly important.
Inventory Remains Tight
Despite slight increases from pandemic lows, housing inventory in desirable markets remains well below historical averages. This supports prices but creates competition for buyers. Well-priced listings often receive multiple offers.
Remote Work Reshapes Preferences
Continued remote and hybrid work has allowed more buyers to consider homes farther from job centers. The Inland Empire, Sacramento, and Central Valley have benefited from this migration, though traffic and commute times remain factors for many.
Investment Activity Normalizes
Real estate investors remain active but selective. Cash flow analysis matters more than ever with higher mortgage rates. DSCR loans and creative financing help investors acquire properties without traditional income documentation.
Thinking About Buying or Selling in California?
Get expert guidance from a licensed California real estate and mortgage broker who understands local markets and financing options.
Call (805) 555-LOAN or email mccoy@betteroffers.com
Better Offers Inc | CA DRE License #01902006 | Licensed California Real Estate & Mortgage Broker
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