The California housing market forecast for 2025-2026 indicates mixed trends, with some areas expected to see price increases while others may experience slight declines. Increased sales and lower interest rates are anticipated to drive growth, but affordability remains a significant challenge, with only about 16% of households able to afford a median-priced home. The market is predicted to stabilize, with regional differences becoming more pronounced. Overall, a major crash is unlikely, but careful monitoring of economic conditions and interest rates is essential.
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