Long Beach CA Housing Market: Trends & Forecast 2025-2026

Living in Long Beach offers a quintessential California dream – sun-soaked beaches, a vibrant pier scene, and proximity to the bustling heart of Los Angeles. Naturally, this idyllic lifestyle translates to a dynamic housing market. So, if you're considering buying a piece of the Long Beach dream in 2025, here's a breakdown of the key trends to help you catch the perfect wave.

Long Beach CA Housing Market Trends: What You Need to Know

The Long Beach housing market remains somewhat competitive, with homes typically selling in around 46 days. However, there are some shifts in the market compared to last year, indicating that the market may be cooling slightly. While home prices are still on the rise, the pace of growth is slowing.

Home Sales

The number of homes sold in Long Beach in October 2024 has increased compared to the previous year. According to Redfin, a total of 241 homes were sold in October 2024, a notable 33.1% increase from the 181 homes sold in October 2023. This increase in sales volume suggests that there's still a healthy level of activity in the Long Beach housing market, even with the slight shift toward a more balanced market.

From my personal experience, having lived and worked in the Long Beach area for over a decade, I've noticed that buyers are becoming a bit more cautious in their approach. They are taking their time to find the right home and are not rushing into decisions like they were in the past couple of years. This could be due to the rising interest rates that we've seen nationwide, causing many buyers to adjust their budgets and search for more affordable options.

Home Prices

While sales volume has increased, the growth in median home prices has slowed. The median sale price of a home in Long Beach was $815,000 last month, which represents a 0.6% increase compared to last year. This is a significant slowdown from the double-digit percentage increases we saw in the past couple of years. Although prices are still going up, the slower pace of growth suggests that the market is becoming more balanced, which can be advantageous for both buyers and sellers.

The median sale price per square foot in Long Beach has also increased, currently at $642. This signifies a 4.1% year-over-year growth. This metric reflects the price appreciation trends in Long Beach, showcasing the steady price increases in the market. Based on my observation, this increase is likely influenced by the factors that keep driving demand for housing in the city, like the desirable weather, job opportunities, and strong community spirit.

Housing Supply

I believe that the housing supply in Long Beach is still relatively tight. While there are more homes available in 2024 than there were in 2023, the number is not enough to balance the market completely. This continues to place upward pressure on home prices, albeit at a slower rate than before.

According to Redfin data, the average time it takes for a home to sell in Long Beach is 46 days, which is slightly longer than the 37 days recorded last year. This increase in the days on the market indicates a slight cooling in the buying frenzy, allowing buyers more time to consider their options. While it still takes a relatively short time for homes to sell, this increase signifies a more balanced market.

Market Trends

The Long Beach housing market is experiencing a shift from a highly competitive seller's market to a more balanced state. While still competitive, buyers now have slightly more negotiating power. The days on the market are increasing, and the rate of price growth has slowed down. It's important to keep in mind that the market can change very quickly, so keeping an eye on the trends is crucial.

Here's a quick snapshot of the current market trends:

• Increase in home sales: This signals a healthy housing market.
• Slower growth in home prices: A sign of a more balanced market.
• Increased days on market: This offers buyers more time to negotiate.
• Slightly more negotiating power for buyers: The market is becoming less frantic.

In my experience, these market trends indicate that the market is likely to continue moving towards a more balanced state in the coming months. This doesn't mean that home prices will fall dramatically, but it does suggest a more sustainable and healthy rate of growth.

Is Long Beach a Buyer's or Seller's Housing Market?

The Long Beach housing market currently leans towards a more balanced state, although it retains elements of a competitive market.

Buyer's Perspective:

• While still a competitive market, buyers have slightly more room to negotiate than in previous years.
• The increased days on the market allow for more time to explore available options and make informed decisions.
• Interest rates play a significant role in influencing buyer affordability.

Seller's Perspective:

• While the market is cooling, sellers can still expect a good return on their property investment.
• It's crucial to price homes strategically, considering the current market conditions.
• Working with a knowledgeable and experienced real estate agent is vital for maximizing your selling potential.

Overall, it's a good time to be both a buyer and a seller in Long Beach. Buyers have more room to breathe and can leverage the slowing price growth, while sellers can still benefit from the desirable location and strong local economy.

Are Home Prices Dropping?

No, home prices in Long Beach are not dropping drastically. They are still increasing but at a slower rate. The year-over-year growth in median home prices is only 0.6%, which is significantly lower than what we've seen in the past couple of years. This slowdown can be attributed to several factors, including rising interest rates and a more balanced market.

However, it's important to note that a slower rate of price growth is not the same as a price decline. The market is still experiencing price appreciation, just at a more sustainable pace. This is good news for buyers as it reduces some pressure on affordability, but it also means that sellers need to be more strategic in pricing their properties to attract buyers in the current environment.

Long Beach CA Housing Forecast 2025-2026

Predictions for the Future

Based on the current market trends, I anticipate that the Long Beach housing market will continue to move towards a more balanced state in the coming months. While prices are not expected to fall drastically, I predict that the pace of price growth will moderate.

Here are some specific predictions:

• Home prices will continue to increase, but at a slower rate. This moderation in price growth is likely to continue as the market adjusts to higher interest rates and a more balanced supply and demand dynamic.
• The inventory of homes for sale will gradually increase. However, this increase will likely be slow and may not be enough to dramatically reduce home prices.
• The days on market will continue to increase slightly. This will continue to give buyers more time to make informed decisions and potentially negotiate better prices.
• The competition for homes will remain but will become less fierce. While the market is still competitive, the pressure will ease as the market becomes more balanced.

Factors Influencing the Long Beach CA Housing Market

Several factors influence the Long Beach CA housing market, and it's important to be aware of them when making decisions about buying or selling a home.

1. Interest Rates: Interest rates have a huge impact on the affordability of buying a home. Higher interest rates make it more expensive to borrow money, which can reduce the number of people who can afford to buy a home. As of October 2024, we've seen a rise in interest rates, which has caused a slight slowdown in the pace of home price growth in Long Beach.

2. Job Market: The Long Beach job market is diverse and relatively strong, with industries such as aerospace, healthcare, and tourism. The strong job market attracts people to the area, which creates demand for housing. A strong job market can make the housing market more competitive, and we've seen that continue to be the case in Long Beach.

3. Economy: The overall health of the national and regional economy can influence the housing market. Economic downturns can lead to job losses and reduced consumer confidence, which can cause a decrease in home sales and potentially price reductions. The Long Beach economy has shown resilience in the face of recent economic challenges, leading to continued demand for housing.

4. Demographics: The demographics of an area can also influence the housing market. The population of Long Beach is diverse, with a mix of young professionals, families, and retirees. The diverse population creates a variety of housing demands, contributing to the sustained activity in the market.

5. Lifestyle and Amenities: Long Beach offers a unique blend of urban amenities and beachside relaxation. The city has a vibrant arts and culture scene, along with a wide range of recreational opportunities. This desirable lifestyle attracts people to the area, creating continuous demand for housing and contributing to the competitive nature of the market.

6. Inventory: As I mentioned earlier, the housing inventory in Long Beach is still relatively tight. This shortage of homes for sale continues to create upward pressure on prices. The inventory levels are closely linked to the construction and development activities in the area and the overall economic health of the region.

Conclusion

The Long Beach CA housing market presents a unique opportunity for both buyers and sellers. While the market is still competitive, it is shifting toward a more balanced state with a slower rate of price growth. Buyers have more opportunities to negotiate, and sellers need to be strategic with their pricing.