What Fall Means for the Housing Market: Key Takeaways from C.A.R.’s 2026 Forecast

We hope your fall is off to a cozy, productive start. We wanted to share some insights from the 2026 California Housing Market Forecast released by the California Association of REALTORS® (C.A.R.) — plus what those mean for you. As the leaves change, so do housing trends, and there’s potential opportunity ahead. 

Here are some of the most important numbers and projections: 

• Home Sales Up Slightly: Existing single‐family home sales are forecast to increase 2% in 2026 to ~274,400 units, up from the projected 2025 count of ~269,000.  

• Price Increase Continues: The median home price is expected to rise 3.6% to $905,000 in 2026. That follows a projected 1.0% increase in 2025 (to $873,900).  

• Affordability Inches Up: “Housing affordability is expected to inch up to 18 percent next year after edging up to a projected 17 percent in 2025 from 16 percent in 2024.”  

• Mortgage Rates Cooling Off: The average 30‑year fixed rate is expected to decline “more solidly to 6.0 percent in 2026,” after being around 6.6% in 2025. (car.org) 

• Inventory & Active Listings: Housing supply is improving. Active listings are expected to be nearly 10% higher, getting close to pre‑pandemic levels. (car.org) 

C.A.R. also notes several headwinds to watch—“ongoing trade tensions … the home insurance crisis, and a potential stock market bubble” among them.  

What does this mean for you this Fall and next year?  

• For Sellers: If you’re considering listing, 2026 may bring a more stable environment. With rising prices and improving demand, confidence is likely to strengthen. 

• For Buyers: The slight decrease in mortgage rates and modest improvement in affordability might give you more room to work with. Waiting may mean higher home prices—but possibly better inventory and less intense competition. 

• For Investors or Move‑Up Buyers: Increased listings and a leveling market may offer chance to find properties that weren’t available or affordable in recent years. 

Here are some things we would love to hear from YOU about:  

• What is most important to you: price appreciation, affordability, or finding just the right home? 

• Are you more excited by the prospect of mortgage rates dropping or by having more homes to choose from? 

• Do you expect to make a move in the next 6‑12 months, or are you in “watch & wait” mode? 

If you’d like, we can prepare a custom homes‑for‑sale report for your area showing what’s available now vs what we expect to see in 2026. 

Also, if you’re curious about what these trends look like specifically in Glendora — median prices, inventory, what 2% more in demand might feel like locally — We’d be happy to walk you through that.