Happy New Year! As we kick off 2026, the conversations I’m having with neighbors in Cerritos, from Shadow Park to the homes near Don Knabe Park, all revolve around two big questions:
"Is the market going to crash?" and "Are interest rates finally going back down to 5%?"
If you are thinking about making a move this year, you need facts, not fear. Here is what the data is telling us about the Cerritos real estate market in 2026.
The Interest Rate Reality: 5% vs. The New Normal
The most common question I get is about mortgage rates. Many buyers have been sitting on the sidelines hoping for a return to the rates we saw a few years ago.
The Forecast: While we all want lower costs, most experts are forecasting that rates will stabilize around the 6% to 6.3% range for much of 2026.
What this means: We likely won't see a sudden drop to 5% overnight, but the volatility is gone. This "stabilization" is actually good news. It allows buyers to plan their budgets with confidence rather than worrying about a rate hike tomorrow. If you find the right home in the ABC Unified School District, locking in at today’s rates is often smarter than waiting for a drop that might be another year away.
Are Home Prices Crashing?
The short answer is: No.
However, the market is changing. For the first time in a while, we are seeing inventory tick up.
For Buyers: This means more choices. You might actually get to view a home twice before writing an offer.
For Sellers: This doesn't mean you've lost your equity. Cerritos remains highly desirable due to our central location and school district. It just means that aggressive pricing and proper marketing (video, staging, digital reach) are more important now than they were in the "frenzy" years.
Why We Call 2026 the "Year of Balance"
For the last few years, the market has swung wildly to one side. 2026 is shaping up to be the year of balance.
Sellers can still cash out on record equity, provided the home is prepped correctly.
Buyers have more room to breathe and negotiate repairs, even if rates aren't at rock bottom.
The Bottom Line
If you are waiting for the "perfect" time, you might be waiting forever. The "right" time is when the move makes sense for your family.
Are you curious about how these 2026 shifts impact your specific home’s value? It’s likely different today than it was six months ago. Reach out to me directly for an updated "2026 Equity Checkup."
David Hernandez Your Cerritos Real Estate Specialist