California Housing Market Forecast for the Next 2 Years: 2026-2028

Looking ahead to 2026–2028, California’s housing market is expected to see steady annual price growth in the 2.5%–4% range. We're seeing inventory levels rise and mortgage rates hold steady, opening up more choices for buyers—but the challenge of affordability isn’t going anywhere. That’s why entry-level homes and neighborhoods with accessible price points are going to be in especially high demand. In Santa Barbara, where every edge counts, I approach these shifts like a strategist—leveraging both marketing muscle and lending expertise to spot the right opportunities and maximize visibility for my clients. It’s about delivering results, whether you’re searching for value or positioning your property for the next market wave.