November 2026

Los Angeles Housing Market Outlook: What Buyers, Sellers and Homeowners Should Expect for the Remainder of 2026

November 4, 2026 | Save On Management

The Los Angeles residential real estate market is approaching the final two months of 2026 in an environment characterized by elevated borrowing costs, affordability challenges, changing buyer expectations and continued differences in housing demand across neighborhoods.

Following the November 3 midterm elections, financial markets are also evaluating what the new political landscape could mean for the economy, inflation, government spending and interest rates. While the election may influence economic expectations, the direction of the Los Angeles housing market will ultimately depend on a much broader set of factors.

For homeowners considering selling, prospective buyers evaluating their options, and investors looking at residential real estate opportunities, understanding the current local market is particularly important.

At Save On Management, we believe the remainder of 2026 will be characterized by a more selective housing market. Buyers are becoming increasingly cautious, sellers must pay closer attention to pricing, and property condition, location and affordability are playing a greater role in determining how quickly homes sell.

Although the Los Angeles market continues to demonstrate underlying demand, the conditions that existed during the exceptionally competitive housing markets of previous years have changed.

1. Where Does the Los Angeles Housing Market Stand Today?

According to the California Association of REALTORS (C.A.R.), the September 2026 median price for existing single-family homes in the Los Angeles metropolitan area was approximately $855,000, compared with $830,000 during September 2025, representing a 3% year-over-year increase.

However, sales activity tells a somewhat different story.

September sales in the Los Angeles metropolitan area increased 1.5% compared with August but declined 8% compared with September 2025.

This indicates that while home values have remained relatively resilient, transaction activity continues to face challenges.

The Los Angeles metropolitan area also recorded approximately four months of unsold housing inventory in September, compared with 3.8 months a year earlier. Homes took an average median of 33 days to sell, compared with 34 days during September 2025.

These figures suggest a market that is gradually providing buyers with more time and negotiating opportunities, although conditions remain dependent on the property’s location and price range.

Source: California Association of REALTORS, September 2026 Home Sales and Price Report.

2. Mortgage Rates and Housing Affordability Will Continue to Drive Demand

One of the biggest factors influencing the Los Angeles housing market is the cost of financing.

Even modest changes in mortgage rates can significantly affect monthly payments, particularly in a market where home prices are substantially higher than the national average.

For many prospective buyers, the challenge is not simply qualifying for a mortgage. It is determining whether the total cost of homeownership is financially sustainable.

Mortgage payments, property taxes, homeowners insurance, maintenance, utilities and other ownership expenses must all be considered.

The election results may influence financial-market expectations, and Treasury yields initially moved lower following the November 3 election. However, the subsequent movement in yields demonstrates that markets remain uncertain about the longer-term economic outlook.

Buyers should not assume that mortgage rates will automatically decline as a result of the election.

The Federal Reserve’s approach to inflation, employment and economic growth will continue to influence borrowing conditions.

If mortgage rates gradually improve during the remainder of 2026, additional buyers could return to the market. This could increase competition for desirable properties, particularly in neighborhoods where available inventory remains limited.

Conversely, if financing costs remain elevated, buyers may continue postponing purchases or negotiating more aggressively.

3. Los Angeles Is Not One Housing Market: Neighborhood Conditions Matter

One of the most important considerations when evaluating Los Angeles real estate is understanding that the market is not uniform.

Conditions in Beverly Hills can be very different from those in Sherman Oaks, Encino, Studio City, Burbank, Glendale, Pasadena, the San Fernando Valley or the South Bay.

Even within the same city, property values and buyer demand can vary significantly depending on neighborhood, school districts, property condition, lot size, accessibility and available amenities.

Several factors are particularly important:

Westside and Luxury Markets

Higher-priced properties tend to be more sensitive to financing conditions, economic uncertainty and changes in consumer confidence.

Buyers in these markets may have greater financial resources, but they are also evaluating property values, investment considerations and the cost of ownership carefully.

Properties above certain price thresholds may require more time and a more targeted marketing strategy.

In the City of Los Angeles, the Measure ULA transfer tax also remains an important consideration for qualifying high-value transactions.

San Fernando Valley

Communities such as Sherman Oaks, Studio City, Encino and Woodland Hills continue to attract buyers seeking residential neighborhoods, access to employment centers and a range of property types.

However, affordability remains a significant consideration, particularly for first-time buyers and households financing a substantial portion of their purchase.

Property condition, location and realistic pricing will continue to influence demand.

Burbank, Glendale and Pasadena

These markets benefit from established residential communities, employment centers, neighborhood amenities and access to major transportation routes.

Demand can vary substantially depending on property type and price range, but desirable homes that are appropriately priced may continue to attract qualified buyers.

South Bay and Coastal Communities

Coastal communities and established neighborhoods may benefit from limited available land and lifestyle demand.

However, insurance availability, property maintenance, coastal considerations and overall ownership expenses can influence purchasing decisions.

The important takeaway is that buyers and sellers should evaluate their immediate neighborhood rather than relying exclusively on national or countywide housing statistics.

4. Insurance Costs and the Los Angeles Wildfire Recovery

Another significant factor affecting the Los Angeles residential market is homeowners insurance.

The January 2025 wildfires had a substantial impact on communities throughout Los Angeles County, particularly Pacific Palisades, Altadena and surrounding areas.

The effects continue to influence housing decisions.

For homeowners in fire-affected areas, insurance availability, rebuilding costs, construction expenses and property condition remain important considerations.

Prospective buyers are increasingly evaluating insurance costs and availability before committing to a purchase.

In some circumstances, securing appropriate insurance coverage can be a significant part of determining whether a property is financially practical to own.

The California FAIR Plan may provide an insurance option for certain homeowners who cannot obtain coverage through the traditional insurance market, but its coverage limitations, costs and supplemental insurance requirements should be carefully reviewed.

For buyers considering properties in higher-risk fire areas, we strongly recommend obtaining insurance information and an accurate estimate of ownership costs before removing purchase contingencies.

For sellers, understanding the property’s insurance history and providing available documentation can help address potential buyer concerns.

5. What Should Homebuyers Expect for the Remainder of 2026?

For buyers, the current market may offer opportunities that were more difficult to find during the highly competitive housing market of previous years.

With transaction activity slowing and homes taking time to sell, some sellers may be more receptive to reasonable negotiations.

Buyers may have opportunities to negotiate:

• Purchase price.
• Closing costs and seller concessions.
• Repair credits.
• Financing contingencies.
• Inspection-related requests.
• Closing timelines.

However, buyers should not assume that every property is negotiable.

Well-maintained homes in desirable neighborhoods, particularly those priced appropriately, can still attract substantial interest.

Our recommendation is to focus on financial preparation rather than attempting to predict the exact bottom of the market.

Buyers should establish a realistic budget, obtain financing preapproval, understand their monthly obligations and evaluate properties based on long-term suitability.

A purchase should make financial sense under today’s financing conditions, not simply because a buyer expects interest rates to decline in the future.

6. What Should Home Sellers Expect?

For sellers, the remainder of 2026 will likely require a more strategic approach.

The market is no longer rewarding unrealistic asking prices simply because housing demand remains present.

Buyers have become more selective and are paying closer attention to comparable sales, property condition and monthly ownership expenses.

Properties that are overpriced may experience longer marketing periods, price reductions and additional negotiation.

We recommend that sellers consider the following:

Accurate Pricing

Review comparable properties that have actually sold in the immediate neighborhood rather than relying exclusively on active listings or previous peak valuations.

Property Preparation

Address visible maintenance issues, improve presentation and consider repairs that could negatively influence buyer perception.

Professional Marketing

High-quality photography, accurate property descriptions and effective marketing exposure can help distinguish a property from competing listings.

Negotiation Flexibility

Sellers should understand that reasonable concessions may help complete a transaction, particularly when buyers are managing higher financing and closing costs.

Timing

Although the spring and summer months typically generate increased housing activity, properties can sell throughout the year when pricing, presentation and marketing are appropriate.

For homeowners who do not need to sell immediately, holding the property may also be a reasonable option, depending on carrying costs, equity position and personal circumstances.

7. Will Los Angeles Home Prices Increase or Decline Before the End of 2026?

This is one of the most common questions among homeowners and prospective buyers.

The available data suggests that the Los Angeles metropolitan market has maintained modest year-over-year price growth, even as transaction activity has softened.

However, it would be premature to assume that every neighborhood or property type will experience the same performance.

The California Association of REALTORS’ updated 2027 housing forecast projects California’s statewide median home price at approximately $882,200 for 2026, representing an estimated 0.8% increase over 2025.

The association also projects that statewide existing single-family home sales will decline approximately 1.1% during 2026.

C.A.R. describes the remainder of 2026 as a relatively subdued period for housing activity, with more improvement anticipated during 2027.

These are statewide projections, not guarantees of performance in Los Angeles or any individual neighborhood.

Nevertheless, they provide useful context for understanding the broader market.

Our assessment is that the Los Angeles market is more likely to experience modest and uneven price movement during the remainder of 2026 than a dramatic market-wide increase or decline.

Individual properties may perform considerably better or worse depending on location, condition, pricing and buyer demand.

Source: California Association of REALTORS, 2027 California Housing Market Forecast.

8. What to Expect During November and December 2026

The final two months of the year traditionally bring seasonal changes in residential real estate activity.

Many buyers and sellers postpone major decisions until the beginning of the following year, while holiday schedules and shorter marketing periods can reduce transaction activity.

However, this does not mean that the market completely stops.

There are still buyers who need to relocate, homeowners who need to sell, investors evaluating opportunities and families who are prepared to move forward.

For buyers, the holiday season may provide an opportunity to evaluate properties with potentially less competition.

For sellers, pricing and presentation become particularly important because the available buyer pool may be smaller.

For homeowners, this is also a useful time to review property values, insurance expenses, maintenance requirements and potential plans for 2027.

9. Looking Ahead: What Could 2027 Bring to Los Angeles?

Although the immediate focus is the remainder of 2026, several developments could influence the Los Angeles housing market as we enter 2027.

Mortgage Financing

Any sustained improvement in mortgage rates could encourage more buyers to return to the market.

Housing Inventory

An increase in available listings could provide buyers with more choices, although the mortgage-rate lock-in effect may continue limiting the number of existing homeowners willing to sell.

Wildfire Recovery

Rebuilding activity and changes in insurance availability will continue influencing specific Los Angeles communities.

Employment and Economic Growth

Employment opportunities, household income and consumer confidence will remain important factors supporting housing demand.

Affordability

The relationship between household income, home prices, mortgage rates and ownership expenses will continue determining how many buyers can realistically enter the market.

Local Market Conditions

Neighborhood-level demand, available housing supply and property-specific characteristics will remain essential in determining individual property values.

The overall outlook is one of gradual adjustment rather than an immediate return to the conditions experienced during the pandemic-era housing boom.

10. Our Perspective at Save On Management

At Save On Management, we believe the Los Angeles housing market is entering a period in which informed decisions and realistic expectations will be increasingly important.

For buyers, the current environment may provide opportunities to negotiate, evaluate properties carefully and make more deliberate purchasing decisions.

For sellers, the ability to price accurately, prepare the property and understand current buyer expectations will be essential.

For existing homeowners, reviewing equity, insurance, maintenance expenses and long-term financial objectives can help determine whether holding, selling or refinancing makes the most sense.

We do not believe that one national headline, political event or interest-rate announcement should determine a real estate decision.

Every property is different, every neighborhood has its own market conditions, and every homeowner or buyer has individual financial circumstances.

Our approach is to look beyond the headlines and evaluate the actual market conditions affecting the property and the people involved.

The Bottom Line: A More Selective Market Creates Both Challenges and Opportunities

As Los Angeles moves toward the end of 2026, the residential housing market remains supported by underlying demand, but affordability and financing costs continue to influence buyer activity.

We expect buyers to remain selective, sellers to face greater pressure to price competitively, and property-specific market conditions to play an increasingly important role in determining transaction outcomes.

Although the election has introduced another variable into the economic outlook, mortgage rates, employment, insurance availability, housing inventory and local demand will remain the primary factors influencing the residential real estate market.

At Save On Management, we believe the best real estate decisions are made through preparation, careful evaluation and a clear understanding of current market conditions.

Whether you are considering purchasing a home, selling an existing property, evaluating your current equity or planning your next real estate investment, having an informed perspective can make a meaningful difference.

Before making your next real estate decision, we invite you to consult with Save On Management. We welcome the opportunity to discuss the Los Angeles housing market, evaluate your circumstances and help you better understand the opportunities available.

Disclaimer and Important Notice

The information and commentary presented in this article represent the opinions and professional perspectives of Save On Management based on market conditions, economic indicators and publicly available information available at the time of publication. This article is intended for general informational and educational purposes only and should not be considered financial, investment, legal, tax, mortgage or real estate advice, nor a guarantee or prediction of future market performance.

Housing market conditions, property values, mortgage rates, insurance costs and investment opportunities vary by neighborhood, property type, location and individual circumstances. Historical market performance and economic forecasts are not guarantees of future results. Readers should conduct their own due diligence and consult with appropriately qualified professionals before making any real estate, financial or investment decisions.

Before making any decisions regarding the purchase, sale, ownership, leasing, refinancing or investment of residential real estate, we encourage you to consult with Save On Management. We welcome the opportunity to discuss your specific circumstances, provide our professional perspective and help you evaluate your available options.

Save On Management makes no representation or warranty regarding the accuracy, completeness or future reliability of market projections or third-party information referenced in this article. All real estate decisions should be based on individual circumstances and current, property-specific information.

September 2026

Is this the worst time to buy a house in California? Why timing really is everything

Source: MSN

It’s easy to see the steep median home prices today and think it’s never been worse, but California has long dealt with high prices. Rising prices and reforms making lending more stringent, however, have changed the demographic of the median homebuyer over the past two decades.

“The average California home buyer today looks very different than a generation ago,” CALIFORNIA ASSOCIATION OF REALTORS® President Tamara Suminski told The Los Angeles Times in a written response to questions.

“Buyers are entering the market later, saving longer, and facing higher barriers to home ownership as home prices, mortgage rates, living costs, and years of limited housing supply continue to strain affordability,” she wrote.

California Cities Are Evading State Mandates To Build More Housing, Lawsuits Claim

Source: Realtor.com

Pro-housing groups from the nonprofit Californians for Homeownership have filed a set of lawsuits accusing three California cities – San Diego, San Francisco, and Montebello – of unfairly blocking more housing development near transit.

The group, which is financially backed by the CALIFORNIA ASSOCIATION OF REALTORS®, said the suit aims to compel the three cities to pick up the pace of approving new projects.

The three cities in question have misinterpreted the law or used other restrictions to get around it, C.A.R. President Tamara Suminski said in a statement.

“Cities throughout California must play by the same set of rules established by our Legislature for the development of housing,” Suminski said. “Through these new lawsuits, Californians for Homeownership continues to play a vital role in addressing housing affordability through impact litigation.”

Proposition 37 proposes $25 billion loan program to help Californians buy homes

Source: KCRA 3 Sacramento

Proposition 37 is a measure on the November ballot that proposes a $25 billion loan program to help California residents overcome the challenge of affording down payments on new homes. It’s a revenue bond that won’t cost taxpayers any money.

The measure, authored by former state Senate Majority Leader and California Assembly Speaker Bob Hertzberg, would allow the state government to issue bonds to help residents borrow up to 17% of their down payment, requiring them to contribute at least 3% themselves, while their primary mortgage would cover the remaining 80%.

“Homeownership is the biggest thing to create generational wealth, not even a question. Instead of rent, you have a house that rises in value, you’re paying down the mortgage,” Hertzberg said. “It creates real value, real generational wealth for people.”

Stable Credit Scores Mask Growing Mortgage Affordability Divide

Source: National Mortgage Professional

The average American’s credit score is holding steady. Beneath that stability, however, the divide between financially secure consumers and borrowers struggling with housing costs is widening.

The national average FICO Score stood at 714 in April, unchanged from October 2025 and one point lower than a year earlier, according to FICO’s new Fall 2026 Score Credit Insights report.

Mortgage delinquencies initially appeared equally reassuring. The share of borrowers 30 days behind declined to 1.35% from 1.42% a year earlier. But those averages obscure mounting pressure among lower-scoring borrowers and a mortgage payment that has grown much faster than inflation.

The findings point to an increasingly important distinction for mortgage originators: A consumer can maintain a solid credit score without having the income or monthly cash flow needed to support today’s housing costs. Debt-to-income ratios now account for more than one-third of mortgage denials, according to a White House economic report released earlier this year.

Mortgage rates rise, bringing the average rate on a 30-year home loan to where it was 4 weeks ago

Source: Associated Press

Mortgage rates ticked higher this week, nudging the average long-term U.S. home loan rate closer to its recent high for the year.

The benchmark 30-year fixed rate mortgage rate edged up to 6.66% from 6.65% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.56%.

The average rate is now back to where it was four weeks ago and is just shy of 6.69%, the high for the year it reached earlier this month.

Proposition 37 would establish a down payment funding program to help eligible middle-income Californians purchase newly constructed homes. For families who cannot clear the down payment hurdle, Proposition 37 can be the difference between renting and owning.

More importantly, Proposition 37 costs taxpayers nothing. The loans would be funded through revenue bonds, which are repaid by the borrowers themselves with no cost to taxpayers. Private lenders would originate and service every loan.

Demand for riskier mortgages rises again, along with interest rates

Source: CNBC

Mortgage rates continue to climb, prompting more borrowers to search for savings. They found that in riskier, adjustable-rate mortgages, or ARMs.

Demand for those loans made up 8.5% of all mortgage applications last week, up from 8% the previous week, according to the Mortgage Bankers Association, and the highest level since June. In the first years of the pandemic, when mortgage rates fell to historic lows, demand for ARMs was barely 3%.

Major California home insurer plans to write new policies for first time since 2022

Source: Yahoo!

For the first time since 2022, Allstate Insurance could begin writing new home insurance policies in California – with one condition.

Last Monday, the company submitted a filing to the California Department of Insurance indicating it would reopen for business if regulators approve an overall 1.4% rate increase for existing as well as new customers.

Two-thirds of customers would actually see their rates decrease, according to the filing. Another 30% would see rates increase up to 55%; less than 4% of customers’ rates would increase between 55% and 185%. These rates could change as regulators complete their review.

Home sales drop nationally to 14-month low as rising mortgage rates stun buyers

Source: Realtor.com

Home selling suffered a setback in August, both on a monthly and annual basis, as surging mortgage rates kept more would-be buyers on the sidelines at the end of summer.

Existing-home sales decreased to a seasonally adjusted annual rate of 3.98 million, down 2% from July and 1.2% from a year ago, the National Association of REALTORS® reported Thursday. The last time sales dipped below the 4 million threshold was in June 2025.

Nearly half of Americans would consider a 3D-printed home

Source: National Mortgage Professional

Nearly half of Americans would consider buying a 3D-printed home if it met their location and budget needs, but concerns affecting the property’s value and marketability could create additional hurdles for lenders and loan originators.

A new LendingTree survey found that 49% of consumers would consider purchasing a 3D-printed home, while 25% said they were unlikely to do so. In a separate question, 36% said they believe 3D-printed homes could make homeownership more affordable within the next decade.

Mortgage rates climb: Average rate on a 30-year home loan hits the highest level in over 14 months

Source: Associated Press

Mortgage rates rose for the third week in a row, pushing the average long-term U.S. home loan rate to its highest level in over 14 months.

The benchmark 30-year fixed rate mortgage rose to 6.76% from 6.71% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.35%.

August 2026

Fannie and Freddie’s New Condo Mortgage Rules Could Mean More Delays and Denials, Experts Say

Source: Realtor.com

Fannie Mae and Freddie Mac are rolling out a new set of rules aimed at making condos safer. But they come with some extra caveats that would-be condo owners ought to know.

This week, the Federal Housing Finance Agency enacted a set of rules announced in March that change insurance requirements for condominium buildings and communities. The new rules require more thorough reviews of a condo association’s finances, as well as the building’s condition.

Buying a Home Remains Out of Reach with Average Prices Over $1M

Source: NBC San Diego

Homeownership remained out of reach for most households during the second quarter, despite housing affordability holding steady from the previous quarter, according to a report released Wednesday by the California Association of REALTORS.

Statewide, housing affordability fell to 19% in the second quarter from a four-year high of 22% in the first quarter as mortgage rates climbed and home prices rebounded. The statewide median home price rose to $916,750, requiring a minimum annual income of $228,400.

U.S. Construction Spending Unexpectedly Falls in June

Source: Sacramento Bee

U.S. construction spending unexpectedly fell in June as higher mortgage rates continued to weigh on homebuilding.

The Commerce Department’s Census Bureau said on Monday that construction spending dipped 0.1%. Construction spending in May was revised to show it was unchanged instead of edging up 0.1%, as previously reported. Economists polled by Reuters had forecast construction spending would climb 0.2%.

JPMorgan Chase to Invest $750 Billion in Increasing the U.S. Housing Supply and Homeownership

Source: CBS News

JPMorgan Chase said on Monday it will invest $750 billion through 2035 to boost the U.S. housing supply, including financing for 1 million affordable housing units and assisting 500,000 people in buying homes.

The investment is part of JPMorgan Chase’s American Dream Initiative, announced in March to boost economic mobility at a time when many Americans say traditional financial milestones are slipping further out of reach. The investment represents a 40% increase in the bank’s housing capital deployment compared to the previous 10 years, the company said in a statement.

Mortgage Rates Rise for 5th Straight Week, Hitting Levels Not Seen Since 2025 for 2nd Week in a Row

Source: Associated Press

The average long-term U.S. mortgage rate rose for a fifth consecutive week to its highest level in just over a year, marking the latest strain for prospective homebuyers who are facing steep borrowing costs.

The benchmark 30-year fixed rate mortgage rate rose to 6.69%, mortgage buyer Freddie Mac said Thursday, up slightly from 6.66% reported last week. By comparison, the average rate was 6.63% at this time last year — and hadn’t been higher than its current level since late July in 2025.

Capital Gains Exclusion Bill Draws More Backers in Senate, House

Source: Real Estate News

A bipartisan proposal to increase the capital gains tax exclusion on the sale of a primary residence continues to gain momentum in Congress. The More Homes on the Market Act would raise the exclusion to $500,000 for individual filers and $1 million for married couples filing jointly, while also indexing the amounts for inflation. The bill recently added new co-sponsors in both the House and Senate, bringing total support to 174 lawmakers. Advocates say the measure could encourage more homeowners to sell, potentially increasing housing inventory.

New Federal Rules Could End Mortgage Escrow Interest for Some Homeowners. States are Suing to Block Them

Source: CNBC

A coalition of 10 states, including California, has sued the Office of the Comptroller of the Currency over new federal rules that exempt national banks from state laws requiring interest payments on mortgage escrow accounts. The states argue that the agency exceeded its authority and weakened consumer protections, while the OCC maintains that federal banking law allows federally chartered institutions to determine their own escrow account terms. The outcome could affect whether some homeowners earn interest on funds held for property taxes and insurance.

Buyers are Being Watched at Showings and it’s Costing Deals

Source: Mortgage Professional

A new LendingTree survey found that cameras and recording devices have become common during home showings, with nearly three-quarters of recent buyers reporting they noticed surveillance. The survey found that 19% of buyers left a showing because of recording devices, while 18% decided not to make an offer. Many buyers also said they changed their behavior during showings, avoiding discussions about budgets, offer strategies, or their opinions of a property.

The report suggests that visible surveillance may affect both buyer comfort and negotiations. Analysts advise agents to remind clients to assume they may be recorded during showings and to save discussions about pricing or strategy until after they leave the property

Record Home Prices and High Mortgage Rates Send Buyers to the Sidelines

Source: Los Angeles Times

U.S. existing-home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million, although sales were 0.7% higher than a year earlier. The national median sales price rose 2% year over year to $434,100 as limited inventory and elevated mortgage rates continued to constrain the market. The average 30-year fixed mortgage rate reached 6.69%, its highest level in more than a year. Meanwhile, first-time buyers accounted for 29% of sales, well below the historical average of about 40%

Mortgage Rates Dip Slightly for the First Time in Six Weeks

Source: Associated Press

The average long-term U.S. mortgage rate fell slightly for the first time in six weeks on Thursday, marking a glimpse of relief for prospective homebuyers — although borrowing costs remain steeper than they were a year ago.

The benchmark 30-year fixed rate mortgage rate tumbled to 6.67%, mortgage buyer Freddie Mac said Thursday, down from 6.69% reported last week. Still, by comparison, the average rate was 6.58% at this time in 2025.

C.A.R. Advocacy Leads to Key Revisions in Pending State Bills

Two California bills that have drawn significant attention from the real estate industry were recently amended in ways that address major concerns raised by C.A.R.

AB 2795 originally raised concerns because it could have been interpreted to require California real estate licensees involved in franchise sales and business opportunity brokerage activities to obtain an additional license from the Department of Financial Protection and Innovation (DFPI). C.A.R. opposed the bill and worked with the author, committees, and stakeholders to secure amendments clarifying that licensed real estate professionals may continue conducting franchise sales and related business opportunity transactions under their existing Department of Real Estate license. Following those amendments, C.A.R. withdrew its opposition.

AB 1776 has been a concern for businesses statewide because it expands California antitrust law to reach single-firm conduct, potentially increasing litigation exposure, compliance uncertainty, and costs. The bill was amended to remove its private right of action provision, which C.A.R. identified as the most concerning aspect of the measure. The amendment reduces the risk of costly and burdensome litigation, though C.A.R. and other business groups will continue their opposition efforts as the bill moves forward.

C.A.R. will continue to track these bills and advocate for the interests of REALTORS®. Stay tuned for future updates as the legislative session progresses.

Home Sales Pull Back in July as California’s Median Price Slips Below $900,000

California home sales retreated in July after a solid rebound in June but remained above their year-ago level for the fourth consecutive month as the market continues to search for sustained momentum and lower interest rates, C.A.R. reported today.

Existing, single-family home sales totaled 263,170 in July on a seasonally adjusted annualized rate, down 6.0 percent from June and up 1.1 percent from July 2025.

The statewide median home price declined to $887,680, down 1.9 percent from $904,640 in June and up 0.3 percent from $885,180 in July 2025.

C.A.R. Weekly Market Update

The economy and housing market entered the third quarter on uneven footing, with California home sales softening, consumer spending pulling back, and confidence measures improving but still fragile. Inflation has cooled, offering some relief to households and financial markets, but price growth continues to run ahead of wage gains, keeping pressure on consumers. At the same time, businesses and CEOs remain cautiously optimistic, helped by signs of easing price pressures and steadier hiring plans. Challenges remain, particularly for housing demand and consumer resilience, but the fundamentals could gradually improve in the final quarter if progress in U.S.-Iran peace negotiations helps ease energy-market volatility, reduces inflation risks, and supports a more stable labor-market outlook.

Program On California Ballot Could Cut Home Down Payments To 3%

Source: Yahoo! News

California home prices are so high that households in many regions can’t even afford a down payment. A proposal going to the state’s voters in November would help, proponents say.

Proposition 37, embedded deep in the laundry list of potential policies that Californians will vote on later this year, would allow the state to loan middle-income residents up to 17% of the purchase price of a newly constructed home. Combined with a traditional mortgage, the loan could allow homebuyers to put down as little as 3% on their new home.

California Home Sales Pull Back in July as Median Price Slips Below $900,000

Source: Realty Wire

California home sales pulled back in July and the statewide median price slipped below $900,000 for the first time in four months, as mortgage rates that briefly touched a 12-month high weighed on the nation’s largest housing market, the California Association of Realtors reported.

Statewide sales fell to a seasonally adjusted annualized rate of 263,170 homes in July, down 6.0% from June but still up 1.1% from a year earlier, according to C.A.R.’s July 2026 sales and price report.

The Nationwide Home Insurance Crisis Is About Far More Than Monthly Premiums Skyrocketing

Source: Realtor.com

Homeowners have gotten used to hearing bad news about insurance premiums. But a new nationwide analysis suggests rising prices are only part of the problem.

A first-of-its-kind report from the National Association of Insurance Commissioners (NAIC) found that insurer-initiated nonrenewal rates increased between 96% and 216% from 2018 to 2024, depending on the region. In 2024 alone, insurers initiated more than 2 million nonrenewals nationwide.

Affordable Housing Concerns Unite Older Americans Across Party Lines

Source: AARP

Housing affordability is a pressing concern for Americans 50 and older. Nearly 9 in 10 (87%) say the lack of affordable housing nationwide is a significant problem, including a majority who view it as a very significant problem. Concern is equally strong closer to home: 86% say housing costs in their community are too high, with half (51%) saying they are much too high.

Importantly, these concerns cross political lines. Large majorities of Republicans (83%), Democrats (95%), and Independents (76%) agree that the shortage of affordable housing is a significant problem.

Weekly Mortgage Demand Stalls Along With Interest Rates, But Rates Are Now Moving Higher Again

Source: CNBC

Mortgage rates didn’t budge last week, leaving little incentive for either homebuyers or current homeowners to call their lenders.

Total mortgage application volume was essentially flat from the previous week, down 0.4%, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, remained unchanged at 6.77%, with points decreasing to 0.65 from 0.67, including the origination fee, for loans with a 20% down payment.