Buying a home in California? What experts predict for the 2026 housing market

California's housing market in 2026 is expected to stabilize with modest home price increases of 2-3%, reaching a median of $905,000. Mortgage rates are predicted to ease, staying below 6%, improving affordability. Housing inventory is rising about 20% from last year, offering more choices, especially in Northern California and the Central Valley where prices are more affordable. These trends may benefit first-time buyers.