Mortgage rates are predicted to be slightly lower. Experts expect mortgage rates to ease slightly, mostly sitting in the low-6% range. This should give buyers a bit more breathing room, which is also good news for sellers by way of increased demand.

Home prices should stabilize. Home prices are expected to rise slowly rather than surge, creating a more predictable market for both buyers and sellers. In recent years, rapid and unpredictable price swings made it easy for sellers to misread the market (and set poor expectations) — leading to overpriced listings that sat for far too long.

Income growth expected to outpace home price growth. Income growth is expected to outpace home-price growth in 2026, meaning buying power could edge up and affordability may improve for the first sustained period in years.

Perhaps a slight increase in home sales? Existing home sales are predicted to tick up slightly as more buyers feel ready to move due to increased affordability — boosting market activity following several tighter years.

All of that may lead to more inventory… More homes could come to market as some sellers decide it’s the right time — helping inventory levels catch up a bit with buyer demand.

What I think this means for LA locals:

• More buyers exploring neighborhoods

• Less aggressive price escalation than the past few years

• Strategic opportunities for both buyers and sellers

Selling or buying in 2026? Let’s chat! Message me.

– Leah Guerra