The first half of 2026 hasn't exactly been easy for anyone trying to buy or sell a home.

Mortgage rates stayed higher than many expected. Affordability remained a challenge. Global events created uncertainty in financial markets. And for many buyers and sellers across Glendale, Burbank, La Crescenta, and throughout Los Angeles County, the safest move felt like doing nothing at all.

But real estate markets rarely stay frozen forever.

As we move into the second half of the year, several indicators suggest the market may finally be preparing for a shift. While nobody can predict the future with certainty, there are reasons for cautious optimism.

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Mortgage Rates Could Finally Start Moving Lower

Ask almost any buyer what kept them on the sidelines this year and you'll probably hear the same answer:

Mortgage rates.

Even small changes in rates can significantly impact monthly payments, which directly affects affordability and purchasing power.

One factor influencing rates that many people overlook is energy prices.

Historically, oil prices and mortgage rates often move in similar directions. When energy prices rise, inflation tends to follow. When inflation remains elevated, mortgage rates usually stay higher as well.

The encouraging news is that oil prices have been trending downward in recent weeks.

If that trend continues and inflation continues to cool, mortgage rates could gradually ease during the second half of 2026.

Will rates suddenly drop into the 5% range overnight? Probably not.

But even modest improvements can make a meaningful difference for buyers who have been waiting for affordability to improve before making a move.

For many Los Angeles buyers, a reduction of even half a percentage point could open doors that felt out of reach just a few months ago.

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Home Prices Are Still Expected To Rise

Many buyers continue waiting for home prices to fall significantly before jumping back into the market.

The problem?

Most economists aren't expecting that to happen.

While some markets across the country have experienced slight price corrections, national forecasts continue to call for positive appreciation through the remainder of 2026.

Major housing organizations currently project average home price growth of approximately 2.3% this year.

That's a much healthier pace than the rapid appreciation we experienced during the pandemic years, but it's still growth.

For buyers, that means waiting may not necessarily lead to lower prices later.

For homeowners in Glendale, Burbank, La Canada Flintridge, and surrounding communities, that's reassuring news for long-term home values and equity growth.

Real estate markets perform best when appreciation is steady and sustainable. Not explosive.

And that's exactly the type of market many experts believe we're moving toward.

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More Buyers and Sellers Could Return to the Market

If the housing market has felt unusually quiet this year, you're not imagining it.

Many families who wanted to move simply chose to wait.

Some were hoping for lower rates.

Others were waiting for more certainty.

Many sellers hesitated because they didn't want to give up their current mortgage rate.

But demand didn't disappear.

It simply paused.

As financing conditions improve and confidence returns, many of those delayed moves may finally begin happening.

Economists expect home sales activity to increase during the second half of the year.

To reach current 2026 sales forecasts, the market would need stronger activity during the remaining months of the year than we saw during the first half.

That suggests experts are anticipating more momentum ahead.

For buyers, increased activity often means more choices and opportunities.

For sellers, it means more qualified buyers re-entering the market.

Either way, movement is generally a sign of a healthier housing market.

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What This Means for Los Angeles Buyers

If you've been waiting for the "perfect" moment to buy, the second half of 2026 may offer a better balance than we've seen in recent years:

• Potentially lower mortgage rates
• More inventory choices
• Less competition than the frenzy of 2021 and 2022
• Continued long-term appreciation potential

The window between improving affordability and rising buyer demand often doesn't stay open for long.

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What This Means for Los Angeles Sellers

For homeowners considering selling, the outlook is encouraging as well.

Home values continue to rise.

Buyer demand remains strong beneath the surface.

And if rates improve, more buyers could quickly return to the market.

Homes that are properly priced, professionally marketed, and strategically positioned should continue to perform well in many Los Angeles neighborhoods.

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Bottom Line

The second half of 2026 may not bring a perfect housing market.

But it could bring a healthier one.

Mortgage rates may ease.

Buyer activity could increase.

Home prices are expected to continue appreciating at a more sustainable pace.

After a challenging first half of the year, the market may finally be setting the stage for more opportunity for both buyers and sellers.

If you're wondering what these national trends mean for your neighborhood in Glendale, Burbank, La Crescenta, Montrose, or anywhere in Los Angeles County, having local insight matters more than ever.