Southern California Housing Inventory Is Rising
What It Means for Buyers and Sellers in 2026
As we move into the back half of 2026, one trend has our entire team encouraged: inventory is back, and it’s reshaping Southern California real estate in a genuinely positive way.
The Hot Topic: More Homes, More Opportunity
After years of historically tight supply, Southern California buyers finally have room to breathe. Here’s the most current snapshot of active inventory across our four core counties:
Los Angeles County
- Active Listings: 19,890 (May 2026)
- Median Sale Price: $944,000
Source: Homes.com/CoStar Los Angeles Housing Market Report, published May 27, 2026, sourced from MLS and public record data.
Orange County
- Active Listings: 4,862
- Pending Contracts: 2,080 (highest total in several weeks)
Source: OC Housing Market Report, Eric Engelbert, Broker at Orange County Real Estate, Inc., weekly report dated June 2026.
San Diego County
- Active Inventory: Approximately 4,700 listings countywide
- Months of Supply: 2.2–3.2 months
- Still favoring sellers overall, but a meaningful improvement from the 1.0–1.5 months of supply seen during the height of the 2022 market.
Source: San Diego Real Estate Hunter market forecast, updated May 16, 2026, sourced from C.A.R., Redfin, Zillow, Freddie Mac, and SDAR MLS data.
Riverside County
- Current Inventory: 6,765 homes for sale countywide
- One of the deepest pools of available homes in Southern California.
Source: Homes.com live MLS-based listing count, current as of late June 2026.
What does this mean in practice? Buyers are no longer forced into frantic, over-asking bidding wars just to get in the door. They have time to do their due diligence, compare options, and negotiate thoughtfully.
Sellers, meanwhile, are responding with smarter pricing from day one—and homes that are priced right are still moving briskly. It’s a market rewarding preparation and good guidance on both sides of the transaction, which is exactly the kind of environment where an experienced escrow partner adds real value.
A note on the data: Inventory figures vary by source and methodology (live MLS counts vs. monthly snapshots vs. aggregator data), so exact totals will differ slightly depending on where and when they’re pulled. The figures above represent the most recent publicly available readings as of late June 2026.
Why This Is Good News for Everyone
- Buyers finally have negotiating room and breathing space to make confident decisions rather than rushed ones.
- Sellers with well-prepared, well-priced homes are still finding strong, motivated demand.
- The Inland Empire continues to stand out as a relative bright spot, holding steady on value and drawing buyers priced out of the coast—a trend we expect to continue as affordability remains the defining theme of the year.
- The broader market is settling into something healthier and more sustainable: balanced, rather than frenzied in one direction or the other.
Mortgage rates remain a real factor, hovering in the mid-6% range, but seasoned buyers are adapting—and many are choosing to move forward now rather than wait on rate predictions, especially as pending home sales have shown encouraging upticks regionally.
Our Commitment to You
Whatever direction the market takes next, our team at Oakwood Escrow remains focused on what we do best: smooth, secure, and timely closings for every client we serve.
A more balanced market means more transactions get the time and attention they deserve, and we’re here to make sure each one closes without surprises.
As always, thank you for trusting us with your transactions. Here’s to a strong second half of 2026.