Home sales are expected to strengthen modestly as lower mortgage rates and improving affordability encourage more buyers to re-enter the market.
• Home prices should continue rising at a measured pace, supported by limited inventory despite ongoing affordability and insurance challenges.
• Inventory is projected to improve gradually, giving buyers more negotiating power while reducing the intensity of bidding wars.
• Economic uncertainty remains a headwind, but California is expected to finish 2026 with moderate sales growth and stable market conditions.
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