The Southern California luxury housing market is poised for remarkable growth! With new forecasts by Lawrence Yun, chief economist at the National Association of REALTORS® (NAR), the luxury real estate landscape in sought-after areas like Newport Coast, Irvine, and the exclusive neighborhoods of Los Angeles, including Beverly Hills, Bel Air, Holmby Hills, and Century City, promises exciting trends.
Forecast Highlights
For buyers and investors in Newport Coast and beyond, luxury real estate is projected to thrive. Yun anticipates a 9% increase in home sales in 2025 and a 13% surge in 2026, with mortgage rates stabilizing around 6%. This forecast brings great news for anyone considering investing in high-end properties across Southern California.
While 2023 and 2024 presented challenges such as inventory shortages and fluctuating rates, the outlook remains optimistic. More luxury homes are expected to hit the market, and mortgage rates are predicted to stabilize, creating favorable conditions for buyers.
Employment Growth Driving Demand
Southern California’s robust employment growth since 2020 has laid a solid foundation for housing demand. Job stability supports the luxury lifestyle sought in Newport Coast, Irvine, and Los Angeles' premier neighborhoods. Paired with access to scenic coastlines, award-winning dining, and world-class amenities, this exclusive lifestyle continues to attract high-net-worth individuals locally and globally.
Mortgage Rate Stability
Yun predicts that mortgage rates will hover around 6%, offering stability that encourages buyers to move forward with purchases instead of waiting for unpredictable rate changes. With planned Federal Reserve rate cuts expected in 2025, confidence in the market is likely to grow further, spurring additional activity in the luxury real estate sector.
Rising Property Values
Home values are also expected to climb. Yun projects a 2% increase in median home prices for Southern California luxury properties in 2025 and 2026. This modest yet steady growth highlights the resilience and stability of the market, making it an appealing option for both homeowners and investors.
The Perfect Time to Invest
Whether you’re a local resident, national buyer, or international investor, Southern California’s luxury real estate market offers exceptional opportunities. From Newport Coast and Irvine to Los Angeles’ prestigious enclaves like Beverly Hills and Century City, now is the perfect time to explore high-end properties and secure your place in California’s iconic coastal lifestyle.
Ready to begin your luxury real estate journey? Let Hosana Saputra guide you with tailored expertise and deep knowledge of Southern California's premier markets. Visit go2hosana.com to discover exclusive listings and start planning your next move into luxury living today!
