Californians for Homeownership was founded in response to the Legislature’s call to fight local anti-housing policies and expand affordable housing for millions of Californians.
CARES is C.A.R’s philanthropic framework to amplify the work, coordinate fundraising and broaden support of C.A.R.’s four charitable causes – Housing Affordability Fund, Scholarship Foundation, Education Foundation, and Disaster Relief Fund.
The Champions of Home Impact Awards honor California REALTORS® who have made a significant impact on their communities through volunteer efforts.
HAF plays an active role in addressing the ongoing housing affordability challenges facing California.
Make A Donation to HAFC.A.R. stands ready to assist REALTORS® who have been impacted by wildfires through its Disaster Relief Fund and NAR's REALTORS® Relief Foundation.
California Disaster ResourcesScholarships for California students planning to pursue a career in real estate.
New to the industry? YPN is a network to sharpen your skills, heighten your leadership, and connect with fellow REALTORS®.
Rising Star AwardDownload and share the official 2025 C.A.R. Member Benefits Guide.
NAR Member Discounts C.A.R. Insurance ProductsAs a C.A.R. member you may have questions about your association and the industry. Find the answers here.
New Member FAQs Glossary Service ProvidersC.A.R. provides tremendous member value through its innovative tools, services and education. Learn more about C.A.R. membership and dues and NAR membership and dues.
C.A.R.'s annual consumer advertising campaign creates awareness of the REALTOR® brand and demonstrates the many benefits of the consumer-REALTOR® relationship.
Smart Zone provides tools and insights necessary to convey your unique value proposition, effectively market your services, keep your clients abreast of current real estate market trends and help you achieve success in a dynamic industry.
C.A.R. is a statewide trade association dedicated to the advancement of professionalism in real estate.
Annual ReportJoin us in celebrating 120 years of supporting REALTORS® and protecting homeownership across California!
The CALIFORNIA ASSOCIATION OF REALTORS® is committed to bring you tools and information to help you succeed. Here are some of the innovative tools, services and education C.A.R. provided to help you achieve your professional goals.
C.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos.
News ReleasesLooking for additional assistance? The Customer Contact Center is looking forward to serving you Monday through Friday between the hours of 8:30 a.m. and 4:45 p.m.
Need help finding the right person? Try searching through our various rosters & directories.
FOR RELEASE
September 17, 2025
C.A.R. releases its 2026 California Housing Market Forecast
California home sales and median price are projected to inch up as housing affordability improves slightly.
LOS ANGELES (Sept. 17) – Following an essentially flat housing market in 2025, California home sales are forecast to inch up in 2026, with the median home price expected to reach a new projected record of $905,000, according to a housing and economic forecast released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
The baseline scenario of C.A.R.’s “2026 California Housing Market Forecast” sees an increase in existing single-family home sales of 2 percent next year to reach 274,400 units, up from the projected 2025 annual sales figure of 269,000. The projected 2025 figure is 0.1 percent lower compared with the pace of 269,200 homes sold in 2024.
The California median home price is forecast to rise 3.6 percent to $905,000 in 2026, following a projected 1 percent increase to $873,900 in 2025 from $865,400 in 2024. Despite softening home prices in recent months, lower interest rates and a slightly improved housing affordability environment will give room for prices to move up in the coming year.
“Home prices in California are expected to rise in 2026, but the growth pace will remain mild when compared to rates we’ve seen in past years,” said C.A.R. President Heather Ozur, a Palm Springs REALTOR®. “For would-be buyers who sat out the competitive market during the past couple of years, that means more opportunities as inventory increases moderately and lending conditions become more favorable. Seller confidence will also improve as home prices stabilize and demand begins to rise again next year after a slow 2025.”
C.A.R.’s 2026 forecast predicts U.S. gross domestic product (GDP) growth rate to slow 1 percent in 2026, after a projected increase of 1.3 percent in 2025. With California’s 2026 nonfarm job growth rising by 0.3 percent after climbing a projected 0.4 percent in 2025, the state’s unemployment rate will increase to 5.8 percent in 2026 from 2025’s projected rate of 5.6 percent and 5.3 percent in 2024.
Inflation will likely pick up in the next 12 months, but the annual average Consumer Price Index (CPI) for 2025 will dip slightly to 2.8 percent, before bouncing back up to an average of 3.0 percent next year. The average 30-year, fixed mortgage interest rate will moderate slightly to 6.6 percent in 2025 but will decline more solidly to 6.0 percent in 2026. While next year’s projected average for the 30-year fixed mortgage interest rate will still be higher than the levels observed in the few years prior to the pandemic, it will be lower than the long-run average of nearly 8% in the past 50 years.
Housing supply in 2026 will continue to improve and will remain near pre-pandemic levels, with active listings up nearly 10% as market conditions and the lending environment continue to improve.
“As economic uncertainty begins to clear up in the next 12 months and mortgage rates start declining more consistently in the upcoming quarters, housing sentiment will see some improvement in 2026,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “However, mounting headwinds such as the ongoing trade tensions between the U.S. and its trading partners, the home insurance crisis, and a potential stock market bubble will remain challenges for the housing market in upcoming year,” Levine continued.
2026 CALIFORNIA HOUSING FORECAST
|
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025p |
2026f |
|
|
SFH Resales (000s) |
398 |
411.9 |
444.5 |
343 |
257.9 |
269.2 |
269 |
274.4 |
|
% Change |
-1.20% |
3.50% |
7.90% |
-22.80% |
-24.80% |
4.40% |
-0.10% |
2.00% |
|
Median Price ($000s) |
$592.40 |
$659.40 |
$784.80 |
$819.40 |
$814.30 |
$865.40 |
$873.90 |
$905.00 |
|
% Change |
4.00% |
11.30% |
19.00% |
4.40% |
-0.60% |
6.30% |
1.00% |
3.60% |
|
Housing Affordability Index* |
31% |
32% |
26% |
19% |
17% |
16% |
17% |
18% |
|
30-Yr FRM |
3.90% |
3.10% |
3.00% |
5.30% |
6.80% |
6.70% |
6.60% |
6.00% |
p = projected
f = forecast
* = % of households who can afford to purchase a median-priced home
Leading the way ...® in California real estate for 120 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 185,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
# # #
