Economic jitters could cool California home sales, experts say

"Nothing affects consumer sentiment like gas prices. So people might start to feel a little bit more hesitant, and that can certainly affect the housing market. It's led to higher gas prices, and some customers are now rethinking some home purchases."

"It's the craziest time I've ever seen. It's so impossible to even have any idea how this plays out. Real estate agents said it has made it more difficult to make predictions for home buyers and sellers."

"In a recent Redfin survey, 25% of Americans said they are delaying or canceling plans for a major purchase like a home or car because of the military conflict with Iran. The survey was conducted by Ipsos on March 5 and 6, about five days after the U.S. and Israel launched a war against Iran."

California's spring real estate market faces significant headwinds despite initial optimism. Mortgage rates fluctuated dramatically, dropping to under 6% in late February before rising to 6.3%, creating substantial market volatility driven by geopolitical tensions and economic instability. Rising gas prices are dampening consumer sentiment and causing buyers to reconsider home purchases. Home sales reached their lowest level in 23 months in January 2026. A Redfin survey found 25% of Americans are delaying or canceling major purchases like homes due to military conflict concerns, comparable to tariff-related hesitation in 2025. Real estate agents report unprecedented difficulty making market predictions.

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