✨ 6 Housing Market Predictions for 2026 ✨

✨ A Luxe Market Outlook for South Bay, Los Angeles & Orange County ✨

As we head into 2026, the real estate market is shifting into something we haven’t felt in a while: balance. Not the frenzy of 2021. Not the freeze of 2023–2024. Just a calmer, steadier, healthier environment. 

Economist Jeff Tucker of Windermere Real Estate shared six predictions — and here’s what they mean for buyers, sellers, and investors across the South Bay, Los Angeles, and Orange County.

1️⃣ Home Sales Will Rise (Just a Little)

With mortgage rates easing and more homeowners ready to list, expect a modest increase in activity — not a boom, just a healthy uptick.

🌴 Local takeaway: more homes coming to market, more move-up sellers returning, and a more normal showing pace overall.

2️⃣ Home Prices Should Stay Mostly Flat

No major drops, no dramatic spikes — just stable pricing as inventory rises and buyer demand stays steady.

🌴 Local takeaway: South Bay stays strong due to limited coastal supply, LA varies by micro-market, and OC’s premium communities remain highly desirable.

3️⃣ Inventory Will Rise Toward Pre-Pandemic Levels

Many homeowners who waited during high rates are expected to list in 2026.

🌴 Local takeaway: more selection in the South Bay, more balanced negotiations in LA, and more options across OC’s top school districts.

4️⃣ Homeownership Rates May Dip

Affordability challenges will keep some buyers renting longer.

🌴 Local takeaway: single-family rentals stay in high demand, investors continue loving coastal CA, and renters still pay a premium for beach lifestyle living.

5️⃣ A Recession Isn’t Expected

Economists see strong earnings and steady employment carrying into 2026, supporting healthy housing demand.

🌴 Local takeaway: strong job sectors in LA + OC (tech, aerospace, entertainment, healthcare) continue to fuel buyer activity.

6️⃣ Mortgage Rates Should Drift Below 6.25%

Rates may land in the low 6’s — possibly even the high 5’s.

🌴 Local takeaway: when rates start with a “5,” buyers wake up, sellers feel confident listing again, and overall momentum strengthens.

✨ What This Means If You’re Buying

More inventory, more negotiating power, and less chaos — though A+ coastal homes will always bring competition. 2026 is shaping up to be a smart, strategic buying year.

✨ What This Means If You’re Selling

With more homes coming to market, details matter: sharp pricing, strong staging, elevated marketing, and strategic positioning. Homes that shine will still sell beautifully.

✨ What This Means If You’re Investing

High rental demand + stable long-term value = an appealing setup for investors. Lifestyle markets like South Bay, LA, and OC tend to perform exceptionally well over time.

✨ Bottom Line: 2026 = A Year of Balance

Expect a calmer, more predictable year — one where strategy and preparation matter more than ever. Whether you’re buying, selling, or investing, 2026 offers opportunities for those who plan wisely.

✨ If you’d like a personalized forecast for your neighborhood, your home value, or your buying power heading into 2026, I’m always here to help. ✨