An updated home price forecast for the Long Beach, California real estate market in 2026, with a key turning point buyers need to know about.
Five key predictions included in this market report:
- The bottom may have already passed. After a year of declining prices, Long Beach is now showing month-to-month growth, suggesting the market has turned the corner in late 2025.
- Expect modest price growth in 2026. Zillow forecasts +1.1% for the metro area, while California overall is projected to see 3.6% appreciation. Long Beach will likely track in the 2-4% range.
- Mortgage rates will drop to around 6%. This decrease from current levels should bring more buyers into the market and increase competition for homes.
- Long Beach will remain a seller’s market. With inventory still tight and falling mortgage rates bringing buyers off the sidelines, sellers will maintain the advantage.
- The window for bargain hunting has closed. Waiting for lower prices in 2026 could backfire as more buyers compete when rates drop and prices rise.
Article Table of Contents
Here’s what you’ll find inside the in-depth market report:
- Long Beach housing market turns a corner
- Is the “bottom” behind us?
- Many homes sell above the list price
- A broader forecast for California
- Is it a seller’s or buyer’s market
- Housing affordability still a challenge
- Frequently asked questions for 2026
Long Beach Housing Market Turns a Corner
After nearly a year of falling prices in Long Beach, month-to-month data is now showing growth. This suggests that the “bottom” of the current real estate cycle may already be behind us, rather than ahead of us in 2026.
According to Zillow, the average Long Beach home value currently sits at $835,166, down 1.7% over the past year. But their data also shows that prices have risen slightly for the past three months in a row, as of November 2025.
So the trajectory has reversed, indicating that prices could trend upward in 2026.
Is the ‘Bottom’ Behind Us?
While we anticipated prices bottoming out in 2026, the data suggests we may have already hit that inflection point in late 2025.
Instead of bracing for further declines, Long Beach buyers and sellers might want to prepare for a different scenario: modest appreciation in 2026.
Zillow’s forecast for the Los Angeles-Long Beach metro area projects a +1.1% increase over the next year (October 2025 to October 2026). That’s not explosive growth, but it represents a meaningful shift from decline to expansion.
The “Bottom” is not a single day, but a phase. We are likely in that phase right now (Q4 2025 through Q1 2026).
- For Buyers: If you wait until mid-2026, you could face higher prices and stiffer competition, even if your interest rate is slightly lower.
- For Sellers: If you can wait, do not sell now. The spring/summer of 2026 promises a higher sales price and a larger pool of buyers as rates moderate.
The obvious disclaimer: housing market predictions are basically an educated guess. Use them as part of your broader research strategy, but don’t bank on them.
Strength Indicator: Homes Selling Above List Price
Here’s another data point home buyers should know about in 2026.
During the fall of 2025, about 37% of homes for sale in the city of Long Beach ended up selling for more than the original list price.
To put that number in perspective:
- National average: 25%
- California average: 34%
- Long Beach: 37%
When homes sell above the list price, it’s usually because multiple buyers are competing for the same property, driving up the final sale price. The fact that 37% of Long Beach homes fell into that category shows strong demand from buyers.
The combination of 37% of homes selling above list and rising month-over-month prices suggests Long Beach has genuine momentum, not just stability. Buyers are active, motivated, and willing to bid up prices—conditions that support a seller’s market.
A Broader Forecast for California
California’s median home price is forecast to rise 3.6% to $905,000 in 2026, following a projected 1.0% increase to $873,900 in 2025.
According to Heather Ozur, president of the California Association of REALTORS (C.A.R.):
“Home prices in California are expected to rise in 2026, but the growth pace will remain mild when compared to rates we’ve seen in past years.”
Long Beach typically tracks these broader California trends, while being slightly more expensive than the statewide median. So the above forecast will likely apply to Long Beach as well.
The National Context: Why 2026 Looks Promising
National Association of REALTORSÒ Chief Economist Lawrence Yun is forecasting a 14% nationwide increase in home sales for 2026, with home prices expected to climb 4% nationally.
His optimism stems from several factors that directly impact Long Beach:
- Mortgage Rates: 30-year loan rates are projected to average around 6% in 2026, down from roughly 6.7% overall for 2025. Even a modest decrease could spur buyer activity. C.A.R. predicts mortgage rates will decline to 6.0% in 2026.
- Job Growth: The economic fundamentals remain solid, with job gains projected to hit 1.3 million nationally in 2026, supporting housing demand.
- Pent-Up Demand: After sitting on the sidelines due to high rates, buyers are ready to move. Mortgage application activity has already begun to pick up, with industry groups reporting a significant year-over-year increase in home loan applications.
Inventory: The Critical Variable
Nearing the end of 2025, the Long Beach real estate market had about a 3.2-month supply of homes for sale. That was well below the 5 to 6 months of supply that’s typically considered to be a balanced market.
Housing inventory in Long Beach will likely remain tight in 2026, creating upward pressure on prices and leading to multiple-offer scenarios for desirable homes.
Tight supply conditions also create additional hurdles for buyers, especially those buying at the lower end of the pricing spectrum where competition tends to be strongest.
Seller’s Market or Buyer’s Market in 2026?
Currently, Zillow’s “heat index” classifies the entire Los Angeles metro area (including Long Beach) as a moderate seller’s market. This means current conditions slightly favor sellers rather than buyers.
But what can we expect in 2026?
If mortgage rates drop as projected and inventory remains constrained, Long Beach will likely remain a seller’s market throughout 2026—and possibly a stronger one.
But there’s a counterbalancing force as well. Homeowners who’ve been holding off on selling may take advantage of stabilizing prices to list their properties. This could increase supply and possibly create a more balanced market.
But for now and the foreseeable future, sellers in Long Beach will have a slight edge.
Affordability Still a Challenge for Long Beach Buyers
This is a crucial issue that affects both buyers and the broader market dynamics.
Annual household income needed to qualify for a mortgage on a mid-tier California home in September 2025 was about $221,000—over 2 times the median California household income in 2024 ($102,000).
For Long Beach specifically, with median home prices around $835,000, affordability remains a significant barrier.
From January 2020 to September 2025, the typical monthly payment for a mid-tier home has far exceeded average wage growth. This widening gap explains why many potential buyers remain on the sidelines despite improving mortgage rates.
The “lock-in effect” is also constraining inventory: Almost 80% of California homeowners have mortgage rates under 5 percent, compared to current rates of about 6.25%, making these homeowners reluctant to list their properties for sale.
Frequently Asked Questions From Buyers and Sellers
A collection of frequently asked questions relating to the Long Beach housing market in 2025, answered by our leading analyst:
1. Will Long Beach home prices go down in 2026?
No one can predict this with certainty. But based on current data and forecasts, Long Beach home prices are not expected to go down in 2026.
Instead, the housing market is projected to see modest appreciation that will probably fall within the 1% to 3% range (year over year) depending on several factors.
After nearly a year of declining prices, Long Beach has shown month-over-month growth since late 2025. This suggests that the bottom has already passed.
With mortgage rates expected to ease, tight inventory levels, and 37% of homes selling above list price, this market will likely experience price growth in 2026 rather than depreciation.
2. What will be the best time to buy a house in 2026?
For some buyers, late winter to early spring 2026 (roughly February–April) might be a good time to buy. Home prices will likely stabilize by then, with the possibility of slow-but-steady appreciation for the foreseeable future.
On the other hand, waiting until mid-2026 or later could mean higher prices and increased competition as mortgage rates drop and more buyers enter the market.
If you find the right property in early 2026, it may be better to act rather than wait for a “perfect” time that may result in paying more later. The key is to be pre-approved and ready to act.
3. Will Long Beach be a buyer’s or seller’s market in 2026?
Long Beach is expected to remain a seller’s market at least into the first part of 2026, potentially becoming even stronger as the year progresses.
Current conditions already favor sellers, with Zillow’s heat index classifying the Los Angeles metro area (including Long Beach) as a seller’s market.
Key indicators supporting this prediction:
- Inventory at just 3.2 months supply (well below the 5-6 months considered balanced)
- 37% of homes selling above list price compared to 25% nationally
- Projected mortgage rate decreases bringing more buyers into competition
While some homeowners may list their properties as prices stabilize, this increase in supply is unlikely to shift the market balance dramatically.
In 2026, Long Beach home buyers should expect to face competition, especially for move-in-ready homes in desirable neighborhoods.
4. How long does it take to sell a house in Long Beach?
In late 2025, homes in Long Beach were taking a median of 54 days to sell, slightly longer than the California statewide median of 48 days.
But the typical selling time can vary significantly by property condition, price point, and location. Well-priced, move-in-ready homes in desirable neighborhoods like Belmont Shore, Naples, and Bixby Knolls often sell much faster, sometimes within 20-30 days.
The fact that 37% of Long Beach homes are selling above list price shows that competitively priced homes can attract competing offers and sell relatively quickly.
In 2026 we will likely see more of the same, unless inventory increases significantly or mortgage rates cause a major shift in buyer activity.
5. What are the hottest neighborhoods for buyers in 2026?
The best Long Beach neighborhoods for real estate investment in 2026 include:
- Belmont Shore and Naples Island for high-end waterfront properties with strong appreciation potential
- Bixby Knolls and California Heights for historic homes that appeal to families and professionals
- Alamitos Beach for more affordable coastal properties with rental demand from students and young professionals
Downtown Long Beach offers opportunities for short-term rental investments due to tourist demand, while Lakewood Village and El Dorado Park provide family-friendly options with good schools and stable long-term tenants.
Each neighborhood offers different investment strategies—waterfront areas provide luxury appreciation, historic districts offer stable value, and areas near California State University Long Beach attract consistent rental demand.
6. What Long Beach neighborhoods offer the best value?
For buyers seeking the best value in Long Beach in 2026, consider neighborhoods like Bixby Knolls (median around $791,000), Lakewood Village (median around $674,000), and areas of the East Village Arts District (median around $447,000).
These neighborhoods offer good schools, low crime rates, and strong community amenities while being more affordable than premium coastal areas like Belmont Shore (median $1.03 million) and Naples Island.
Alamitos Beach provides a middle-ground option for coastal living without the ultra-premium prices of its neighboring communities. California Heights offers excellent value with historic Craftsman bungalows and Spanish-style homes in an officially designated historic district.
El Dorado Park provides family-friendly suburban living with highly-rated schools at more affordable price points than central Long Beach locations.
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Disclaimer: The above report contains home price and real estate market predictions for Long Beach and the rest of California. Such projections are the equivalent of an educated guess. The publisher of this website makes no claims or assertions about future housing trends.