For months, many Southern California buyers have been waitingâwaiting for rates to drop, waiting for more inventory, waiting for better pricing. But something has shifted in mid-2025:
Buyers are no longer waiting for 2026. Theyâre re-entering the market now.
Whatâs driving this renewed confidence? Several powerful trends are pushing both first-time buyers and move-up buyers back into the Southern California housing market.

đ 1. Mortgage Rate Stability Has Replaced Uncertainty
After two years of volatility, rates have finally reached a predictable plateau. Even if rates havenât returned to historic lows, buyers now feel more in control.
- Recent averages hovering in a tight range
- Smaller weekly fluctuations
- Lenders offering more competitive programs, buydowns, and incentives
For many, stability is enough to take actionâespecially before anticipated 2026 demand surges.
đď¸ 2. Inventory Is Slowly Rising Across Key Counties
Buyers who spent 2023â2024 fighting for scraps are now seeing more options:
- Orange County has seen healthier listing activity in the $1.2Mâ$2M segment
- San Diego continues to add inventory through new construction
- Inland Empire shows consistent month-over-month resale growth
While weâre not in a full buyerâs market, competition has softened, and homes are sitting on the market just a bit longerâgiving buyers space to breathe.
đ° 3. Prices Are Not Climbing as Aggressively
Southern California prices are still high, but theyâre no longer accelerating at an unsustainable pace.
This is significant.
In areas like Costa Mesa, Anaheim Hills, and North County San Diego, price growth has cooled to modest, manageable levels. This creates opportunities for:
- Buyers priced out in recent years
- Investors looking for cashflow-positive potential
- Homeowners planning to upgrade without massive cost jumps
The fear of âIf I donât buy now, itâll be even more expensive laterâ has been replaced with strategic decision-making.
đŚ 4. Sellers Are More Willing to Negotiate
Buyers are noticing deals they wouldnât have seen in 2022â2023:
- Seller credits for closing costs
- Price reductions on properties sitting past 30 days
- More openness to inspection requests
- Flexible closing timelines
This shift is giving buyers renewed confidence and actual leverageâa big reason theyâre returning before 2026.
đ 5. SoCal Lifestyle Demand Isnât Slowing Down
One of the biggest reasons buyers arenât waiting?
Southern California remains one of the most desired places to live in the country.
Beach cities, master-planned communities, resort neighborhoods, and high-amenity developments continue attracting:
- Remote workers
- Retirees
- International buyers
- Tech professionals
- Domestic relocators from other states
Buying now ensures securing a home or investment before competition tightens againâwhich experts expect in 2026 once rate cuts deepen.
đ So⌠Should You Wait or Buy Now?
Hereâs the real takeaway:
Those waiting for âperfect conditionsâ may miss the window where buyers actually have leverage.
The second half of 2025 is shaping up to be a rare moment where:
- Rates are stable
- Inventory is healthier
- Prices are reasonable
- Competition is moderate
- Sellers are negotiable
This balance will not last foreverâespecially with projected demand growth in 2026.
đ Work With Amin Vali Real Estate Investment Group
Whether youâre buying, selling, or investing, this is the moment to strategize with the right team.
Amin Vali Real Estate Investment Group specializes in:
â Southern California market insights
â Finding undervalued opportunities
â Negotiating the best terms for buyers
â Strategic pricing for sellers
â Full investment analysis for long-term growth
If you’re thinking about making a move before 2026, donât guessâget expert guidance.