"Those who believe California home prices will crash in 2026 and improve affordability, along with folks hoping for more soaring values to pad their wealth, won't like Zillow's latest forecast. My trusty spreadsheet analyzed price outlooks for calendar 2026 for 50 big metropolitan areas - including six in California - and found Zillow's estimates suggest a dull year ahead. Meek price movements are forecast for the firm's regional indexes of its home valuations."
"House hunters remain sidelined as affordability remains ridiculously out of reach. Plus, Zillow doesn't foresee mortgage rates below 6% next year. And don't forget that a wobbly economy with a challenging job market and stubborn inflation doesn't instill confidence in potential buyers either. Plus, some gurus suggest that limited choices for wannabe owners keep prices out of reach. Statewide listings, as measured by the median change of the six metros, are 21% below pre-pandemic 2019 levels."
Zillow's 2026 outlook for 50 large metros, including six in California, forecasts meek overall price movement with a 1% median gain across the six California metros after a 2.3% statewide decline to a $935,700 median. Affordability remains extremely constrained as mortgage rates are not expected to fall below 6% next year, while a weak economy, tough job market, and persistent inflation reduce buyer confidence. Limited housing supply keeps prices elevated, with median listings across the six metros 21% below 2019 levels. San Diego, Inland Empire, Los Angeles–Orange County, and San Jose show modest gains; San Francisco is projected to dip.
Read at The Mercury News
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