Owning a home in Southern California brings big decisions. You may wonder if you should sell now or wait until 2026. Interest rates, inventory, local demand, wildfires, and regional differences all matter. This guide covers the current market, the outlook for 2025 and 2026, and the risks and opportunities to help you decide.
Current Market in Southern California
Home Sales and Inventory
Recent data shows active listings increasing modestly compared to last year, giving Southern California about four months of inventory. That is an improvement, yet supply remains tight in key counties.
Home sales are moving unevenly. Overall Southern California experienced a slight drop, while counties like Imperial and Ventura saw strong growth. Sales in other counties like San Diego and Riverside softened.
Price Trends
Prices remain elevated across the region. In early 2025, the median home price scored a solid year-over-year gain. Coastal counties like LA and San Diego remain at the top in pricing. Inland regions such as the Inland Empire are more affordable, yet still seeing solid appreciation.
Mortgage Rates and Affordability
High mortgage rates continue to make affordability a challenge, though rates have eased compared to their recent peaks. Many current homeowners remain locked into lower rates, limiting supply. Buyers have gained negotiating power as competition eases slightly.
What Does 2025 Look Like?
Sales and Price Forecast
Statewide, home sales are expected to climb roughly ten percent next year, with the median home price rising about 4.6 percent. Southern California is likely to post more modest gains, in the range of two to five percent, depending on location and inventory.
Inventory and New Builds
Inventory remains low, though improving. Some counties may see up to ten percent more listings. Builders remain active inland, yet added supply is still absorbed by buyer demand.
Interest Rates and Buyer Behavior
Mortgage rates might ease into the high‑five percent range. That could encourage both buyers and sellers to act. Some markets, especially the coast, may stay competitive, while more affordable inland areas may offer room to negotiate.
Regional Differences
Counties like LA, Orange, and San Diego benefit from fresh demand, both local and from out-of-state sources. Inland areas continue to draw attention from investors and those seeking value.
What to Expect in 2026?
Analysts expect continued but slower price increases and somewhat improved supply. Mortgage rates might settle around six percent or slightly lower. With more listings, buyers gain more options, while well-priced homes can still attract strong interest.
Should You Wait Until 2026 to Sell a House in Southern CA? -Jack Ma Real Estate
Risks and Opportunities: Sell Now or Wait
Advantages of Selling in Late 2025
Prices are rising, and supply remains tight.
Slight improvements in rates support buyer interest.
The spring season still delivers strong buyer activity.
Equity gains are solid in many areas.
Benefits of Waiting Until 2026
Slightly better inventory may ease selling pressure.
Continued rate relief could attract more buyers.
Equity can build further.
Considerations if You Hold
More sellers may dilute pressure and urgency.
Market or policy shifts could occur.
Southern California‑Specific Factors
Wildfire Impacts
Fire-affected areas face rebuilding and disclosure complications. Investors are increasingly active in those areas, which may affect values and demand.
Buyer Power Shift
Buyers gain strength as price growth slows and competition eases in some areas.
Regional Migration
Inland areas continue to gain population as buyers look for affordability. Coastal markets remain expensive, while some regions continue seeing moderate growth.
housing market predictions 2025
Here are the key forecasts for 2025:
Home sales statewide are expected to increase around ten percent.
Median home prices are projected to rise roughly 4.6 percent.
Mortgage rates may dip into the high‑five percent range.
Inventory is improving but still tight, especially along the coast.
Coastal markets remain competitive; inland markets offer more balance and value.
FAQs
Is a price crash expected before 2026?
No. Forecasts indicate modest and continued price growth rather than a collapse.Will rates drop significantly before 2026?
Rates might ease gradually into the high‑five to low six percent range, not likely to fall drastically.Which season is best to live in SoCal?
Spring and early summer remain the top for activity and buyer interest.Is inventory improving?
Yes, modestly. Listings are up, but supply remains below norm, especially in popular counties.Does wildfire risk affect buyer interest?
It can. Some buyers avoid fire zones, while investor interest in rebuilding may sustain activity.
Your timing depends on your goals and circumstances. If you can act now, late 2025 may offer strong equity gains, demand, and still-limited competition. If you can hold, 2026 may bring more balance and rate relief, though the seller advantage may narrow.
If you're contemplating selling your home in Southern California, now is an opportune time to leverage the market's dynamics. With inventory levels improving and buyer interest on the rise, partnering with a seasoned professional can make all the difference.
Jack Ma Real Estate stands out as a trusted partner in this journey. With over 16 years of experience in the Southern California real estate market, Jack has consistently ranked among the top agents in the state. His expertise spans various areas, including probate sales, luxury homes, and investment properties, ensuring a comprehensive approach to your real estate needs.
