Is now a good time to buy a home in CA? Why experts say ‘it’s a buyer’s market’
AI-generated summary reviewed by our newsroom.
- Mortgage rates fell to 6.53% in California, offering buyers rare savings potential.
- Rising housing inventory and fewer buyers are shifting power to home purchasers.
- Redfin forecasts home prices may dip by year’s end amid softening buyer demand.
Are you thinking about buying a home in California?
Now might be a good time to make the move — “if you have the means,” according to real estate site Redfin.
“Nationally, now is a good time to buy, if you can afford it,” Redfin chief economist Daryl Fairweather said in an Aug. 11 report.
While home prices are still high across the country — especially in California — Fairweather said “buyers have an upper hand in negotiations” due to lower mortgage rates and an increase in available homes on the market.
To help you decide whether it’s the right time to buy a home, here are some insights into current housing trends.
Are mortgage rates going down in California?
National mortgage rates have dipped to their lowest point in 10 months, giving homebuyers a rare break on affordability, according to Redfin.
“Mortgage rates are important for buyers because they directly translate to monthly housing costs,” Redfin said. “The higher the rate, the more you pay every month.”
“If rates drop, you can save tens of thousands over the lifetime of your mortgage,” the real estate website explained.
In its Aug. 11 report, Redfin said the national average 30-year fixed mortgage rate was 6.58%.
As of Friday, Aug. 15, the average 30-year fixed mortgage rate was 6.53% in California, according to Zillow.
“A sagging job market and a now-expected September rate cut from the Fed are the primary drivers behind the sustained improvement,” Redfin said. “Renewed tariffs and an uneasy economy are wildcards, though, so experts are divided on what the future holds.”
With ongoing economic uncertainty, Redfin said, mortgage rates are likely to keep fluctuating between 6% to 7%.
What is the housing market like in California?
“It’s a buyer’s market for the first time in years,” Redfin said.
Housing inventory is rising nationwide.
There are about 500,000 more home sellers than buyers across the country, giving those looking to purchase a house more negotiating power.
According to Redfin, these were the top five states with the highest housing supplies as of Aug. 11:
1. Hawaii
2. Florida
3. Montana
4. Texas
5. Colorado
As of Friday, Aug. 15, about 70,000 California homes were actively listed for sale on Zillow.
What does a home in California cost?
In it Aug. 11 report, Redfin said the median home price in the United States was $444,000.
This is a 1.4% increase from 2024, and a 28% rise from 2020.
In California, the average California home value was $775,058 as of Friday, Aug. 15.
Housing costs have been at record highs for months, making it harder for many people to buy, Redfin said.
With fewer buyers in the market and more homes sitting unsold, real estate prices could start to drop.
“Redfin predicts that these trends will push house prices down by the end of the year, making homebuying more affordable because wages are expected to rise,” Redfin said. “If you’re planning to buy, moving soon could help you take advantage of lower competition.”
High home costs are still keeping many buyers — particularly younger ones — on the sidelines.
“Buyers who can afford today’s market may be in a better position to receive concessions,” Redfin said. “However, a growing number of sellers are now reconsidering because they’re realizing they can’t sell for as much, which may reduce inventory down the road.”
Is now a good time to buy a house in California?
If you’re ready and able to buy a home, now would be a smart time to make that purchase, according to Redfin.
Though home prices remain high, mortgage rates have dropped.
However, given the unpredictable nature of the economy, it’s hard to know where rates and prices will go next.
“Waiting for rates to fall further leaves you at risk of competition among buyers and subsequent price hikes from sellers,” Redfin said.
In a market like this, Redfin said, preparation is key.
“Buyers serious about making offers should consult a local agent and be confident in their finances and future income,” Fairweather said.
The longer you wait, Redfin said, the more buyers you’ll be competing with.
