The housing recovery has shown mixed signals in 2026. Here's what's happening nationally, how it affects the San Gabriel Valley, and what smart buyers and sellers should do right now.
The national housing market has been sending mixed signals throughout 2026. After a period of optimism earlier in the year, rising inventory in some markets and stubborn mortgage rates have put parts of the recovery on pause. But here in the San Gabriel Valley, the story is more nuanced.
Inventory has increased in many Sun Belt markets, giving buyers more options and negotiating power. However, markets with strong local economies and limited land — like most of Southern California — continue to see tight supply and competitive conditions.
Mortgage rates have stabilized in the mid-6% range after fluctuating throughout 2025. While not the sub-3% rates of 2021, they're well within historical norms and buyers are adapting.
Monterey Park and surrounding communities remain a seller's market. Low inventory, strong demand from both local buyers and international investors, and limited new construction keep prices stable and trending upward. Homes priced correctly still sell within 2-3 weeks with multiple offers.
That said, overpriced listings are sitting longer than they did a year ago. Buyers are more discerning, and the days of offering $100K over asking with no contingencies are largely behind us.
Good news: you have slightly more negotiating power than in 2021-2022. You can ask for closing cost credits, request repairs, and take time with inspections. But don't wait for a crash — SGV fundamentals (jobs, schools, culture, limited land) support continued appreciation.
My advice: get pre-approved now, understand your budget, and be ready to act when the right home comes along. Rates may dip slightly, but waiting for the 'perfect' rate often means paying a higher price.
Your home is still worth more than it was a year ago, but pricing strategy matters more than ever. The days of listing high and waiting for desperate buyers are over. Price it right from day one, invest in professional staging and marketing, and you'll still see strong results.
The market rewards preparation and strategy. Whether you're buying or selling, having an experienced local agent who understands these dynamics is essential. I'm here to help you navigate this market with confidence. Reach out anytime for a no-obligation conversation about your goals.