AS SPRING TRANSITIONS TO SUMMER, IT IS A PERFECT TIME TO TAKE A CLOSER LOOK AT THE CURRENT HOUSING TRENDS AND WHERE IT IS HEADING FROM HERE.
NOT A LOT OF CHANGE
2026 LOOKS A LOT LIKE LAST YEAR, WITH SOME SUBTLE DIFFERENCES.
Everyone has an opinion on the direction of the housing market. In looking for answers, many turn to ChatGPT, YouTube, Google, or Instagram. The results only add to the
confusion, especially with so many clickbait headlines designed to increase views and revenue. It is best to take a step back from all of the opinions and noise and turn to the facts and trends that have surfaced in 2026:
New Listings – There are slightly fewer sellers this year compared to 2025. Homeowners continue to “hunker down” in their homes, unwilling to move because of their underlying, locked-in, low fixed-rate mortgage. This trend has eased from the lows established in 2023. There were 41% fewer homes listed for sale in 2023 than the 3-year average before the pandemic (2017-2019). That diminished to 31% fewer in 2024 and 26% fewer in 2025. The trend of increasing sellers from year to year ended in 2026. Through May, 13,342 sellers came to market, 489 fewer than last year. It is still 13% more than 2024, and 33% higher than 2023; yet, there are 4,937 missing sellers compared to the 3-year average, 27% fewer. Inventory had been growing year over year because additional sellers were matched against unchanging, muted demand. With slightly fewer sellers this year, the annual inventory growth has ended as well. The trend of slightly fewer sellers than last year should continue for the remainder of 2026.
Inventory – Starting in May, for the first time since March 2024, there are fewer homes on the market this year compared to last year. There were 13% more homes in January 2026 than in January 2025. That changed in March. There are now 2% fewer homes than last year (-94). After starting the year with 2,703 homes, the highest level since 2020, the inventory of available homes increased by 1,848 (+68%) to 4,551. The inventory has not yet reached a peak, but is expected to sometime over the summer between July and August. From there, it will slowly decrease for the remainder of the year. The inventory will drop fast in December during the holiday season when the fewest number of homes come on the market, and many unsuccessful sellers will throw in the towel and pull their homes off the market.
Joy Lee
949.290.4903
joy@heyjoylee.com
DRE# 02102122