Southern California Real Estate Market Update – June 2026

Southern California’s housing market in June 2026 shows signs of stabilization after a year of declines, with modest price gains forecast, improving affordability, and a more balanced buyer–seller dynamic.

Market Performance

  • Price Trends: Home prices across major metros are still down year-over-year from late 2025, but forecasts suggest a turning point in 2026. Zillow projects San Diego–Carlsbad at +1.2%, Los Angeles–Long Beach–Anaheim at +1.1%, and Riverside–San Bernardino–Ontario at +1.6% from Nov 2025 to Nov 2026 Home Buying Institute (HBI). Churchill Mortgage notes listing prices are down 2.4% YoY, marking the 7th straight month of declines, but active listings are up 1.8% and new listings up 2.1% Churchill Mortgage.

  • Sales Activity: Home sales are up 3.2% in June 2026, with first-time buyers making up 35% of sales — the highest share in years Churchill Mortgage. Los Angeles County median price rose 2.1% to $845,410, Orange County up 3.7% to $1.47M, and San Diego County up 5.8% to $1.074M Norada Real Estate Investments.

  • Affordability: Mortgage rates are expected to drop from 6.6% to 6.0% in 2026, improving affordability Home Buying Institute (HBI). Incomes are outpacing home price growth in some areas, though inflation remains elevated at 4.2% YoY Churchill Mortgage.

Regional Highlights

Broader California Context

  • Statewide: California median home price is forecast to reach $905,000 in 2026, up 3.6% from 2025 CALIFORNIA ASSOCIATION OF REALTORS®.

  • Inventory: More listings are available, easing supply constraints and giving buyers more negotiating power Churchill Mortgage.

  • Economic Drivers: U.S. job growth in May 2026 was strong (172K jobs), unemployment at 4.3%, and mortgage demand rebounded 10.8% week-over-week Churchill Mortgage.

Outlook

Buyers who wait until late 2026 could face higher prices if forecasts hold, as late 2025–early 2026 may be the lowest point of the current cycle Home Buying Institute (HBI). Seller confidence is expected to improve as prices stabilize and demand returns after a slow 2025 CALIFORNIA ASSOCIATION OF REALTORS®. For investors, modest price gains and improving affordability may create opportunities, but economic uncertainty and inflation risks remain.

Bottom line: June 2026 sees Southern California markets stabilizing after a year of declines, with modest price gains forecast, more inventory, and stronger buyer participation — a shift from the “wait and see” sentiment of 2025.

IN ESCROW LONG BEACH

 

SOLD $1,550,000

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