Housing Forecast for the Second Half of 2025 in Long Beach and Surrounding Cities

More and more people in my orbit are watching the market these days.  Uncertainty, chaos and anxiety seem to dominate conversations between my clients, friends and colleagues.  This naturally extends to Real Estate.  If you’ve been watching the real estate market, you’ve probably seen a few ups and downs.  A lot it is based on “knee jerk” reactions of pundits on Youtube and the main street media, but there is a shift in the market.  It’s real.  The question is, what could these shifts mean for you?  Here’s the latest forecast based on what experts steeped in numbers say:

Will Home Prices Rise or Fall in Long Beach?

Many homebuyers in Southern California hope prices come down. Seeing the news out of markets such as Phoenix, Austin, Tampa and Houston would support this notion.  In fact, the sky is not falling – at least not in Long Beach. 

The truth is, home price “growth” is slowing down.  It doesn’t mean we’re headed for a crash, especially if interest rates beat projections. 

Experts believe that even with a slowdown in price growth, home prices will still rise this year on a national level (at 1.5-2% - see graph).  In Long Beach, we will see an increases in the 2-4% range.

Here is what the NAHB (National Association of Home Builders) says:

“House price growth slowed…partly due to a decline in demand and an increase in supply.  Persistent high mortgage rates and increased inventory combined to ease upward pressure on home prices.  These factors signaled cooling market, following rapid gains seen in previous years.”

Six of the eight leading forecasters in the residential real estate industry show prices going up. When combined together, the average is 1.5-2% for 2025.  

So, if you’re one waiting for a major drop, there’s an agreement amongst the majority of experts that probability of it happening is slim. 

This is not to say that some markets like Phoenix, Austin, Houston or Tampa will experience a slight “average” dip in values of 1-3.5%.  It is nowhere near the 20% decline the real estate market experienced during the 2008 crash.

Then consider how much home prices have increased These past 3 years The Federal Housing Finance Agency (FHFA) data shows an increase in home values of 55% nationally (and even more in Southern California) compared with prices 5 years ago. 

Home prices are not crashing...or even going down across much of Southern California.  They are increasing - just not at the same pace as the past few "Unicorn" years.

Will Mortgage Rates Continue to Move Down?

Right now rates have more or less stabilized in the mid-6% range.  This is before the fed starts its 1-3x rate cut before the end of 2026.  I suspect the first rate cut has already been baked into the current rate (6.53% as of 8/14/25 8:30am). 

The statement I get more often from clients is that they are going to wait until the rates come down.  My question back to them – “Is that a smart strategy?”

Based on history, I’ve found that trying to time the market or wait for a drop in interest rates that may not be coming always ends up not being the smartest strategy because over time, home prices have always risen while interest rates fluctuate.

Most experts say mortgage rates will maintain in the mid- to upper 6% range. Take a look below:

The Bottom Line

If you want or need to make a move, the key will be to keep an eye not only on economic factors that also what is happening in your neighborhood.  Selling or buying a home in this environment will take a strategy, not guesswork.  Prices nationally are still rising.  In Southern California, home prices will increase throughout most of the area by 2-4% over 2025.  We are past the “Unicorn Years” of the pandemic and in a more realistic normal real estate market (aka. 2019).

If you want to make a move, I recommend focusing on your personal situation first – not "doom scrolling" on X, Instagram or Facebook.  In addition, reach out to a trusted real estate source who can give you options based on local factual numbers and trends.

Any questions, please feel free to give me a call, text, email or DM.  I'm always available.