Southern California Housing Market Update (February 15, 2026)
Welcome to your comprehensive guide to the Southern California real estate market! As your dedicated real estate blogger, I'm here to break down the latest trends and data from Moreno Valley, Riverside, Corona, Brea, and Fullerton, offering actionable insights for both buyers and sellers. Let's dive in!
Market Overview: Inland Empire and Orange County
The Southern California real estate market continues to be a dynamic landscape. While some areas are experiencing a slight cooling, overall demand remains relatively strong. Affordability continues to be a key factor, driving many towards the Inland Empire. Understanding these overarching trends is crucial before making any moves in the local market.
Inland Empire: Moreno Valley, Riverside, and Corona
The Inland Empire is showing signs of gradual improvement as the supply cycle cools and demand stabilizes. New construction in the multifamily market is poised to slow in 2026, which should help the market absorb existing inventory more effectively.
Moreno Valley
The average home value in Moreno Valley is approximately $541,184, a decrease of about 2.8% over the past year. The median home price in January 2026 was $555,000, up 1.0% from January 2025. Homes are selling after approximately 53 days on the market. The median rent is $2,850 per month. Moreno Valley is somewhat competitive, with a Redfin Compete Score of 69 out of 100. The median sale price per square foot is around $309, an increase of 2.3% since last year.
What this means for buyers: You may have slightly more negotiating power than last year, but well-priced homes are still moving relatively quickly. Consider neighborhoods like La Jolla, Rainbow Ridge, Cloverdale, and Sugar Hill. What this means for sellers: Pricing your home competitively is crucial. Updated homes in desirable locations are still attracting strong offers.
Riverside
Unfortunately, specific, up-to-the-minute data for Riverside was limited in the search results. However, broader Inland Empire trends suggest a stabilizing market. Keep an eye on local listings and consult with a Riverside real estate agent for the most current information.
Corona
Like Riverside, detailed recent data for Corona specifically was limited. Focus on the overall Inland Empire trends, which indicate a market that's becoming more balanced. Watch for new construction impacts and employment gains influencing the market.
Orange County: Brea and Fullerton
While specific data for Brea and Fullerton from this week was limited in the search results, it's important to note that Orange County generally experiences higher housing costs compared to the Inland Empire.
Brea
Brea is known for its excellent schools and family-friendly environment, which typically keeps demand relatively high. Research local listings and consult with a Brea real estate agent for the latest insights.
Fullerton
Fullerton, with its vibrant downtown and university presence, often sees a diverse range of housing options. Contact a local Fullerton agent to get the most recent data and advice.
Interest Rate Update and Impact
As of February 14, 2026, current interest rates in California are approximately 5.875% for a 30-year fixed mortgage and 5.375% for a 15-year fixed mortgage. Experts anticipate rates to remain between 6% and 7% for the remainder of the year, potentially settling closer to 6.5% by the end of 2026. These rates have decreased from a peak near 8% in late 2023 but not as quickly as many prospective homebuyers were hoping.
Impact on Buyers: Even small fluctuations in interest rates can significantly impact your monthly payments. Work closely with your lender to understand your options and find the best rate for your situation. Impact on Sellers: While rates are still relatively moderate, it's important to be realistic about pricing your home to attract buyers who are sensitive to interest rate changes.
Actionable Insights for Buyers and Sellers
For Buyers:
- Get Pre-Approved: Knowing your budget is the first step.
- Shop Around for Mortgages: Comparison-shopping is crucial to securing the best rate and terms.
- Consider All Neighborhoods: Explore different areas within your target cities to find the best fit for your needs and budget.
- Be Patient and Persistent: The market is still competitive, so be prepared to make multiple offers.
For Sellers:
- Price Strategically: Work with your agent to determine the optimal listing price based on recent sales data in your specific neighborhood.
- Highlight Key Features: Emphasize any upgrades or unique aspects of your property that may appeal to buyers.
- Be Prepared to Negotiate: Be open to considering reasonable offers and addressing any concerns raised by potential buyers.
- Stage Your Home: Make a good first impression!
IE Real Estate News Insights
According to a recent report from Northmarq, the Inland Empire multifamily market recorded softer operating fundamentals in 2025 due to elevated construction activity. However, new construction is expected to slow in 2026, potentially leading to a more balanced market. Investors are benefitting from lower borrowing costs, trending toward a more transaction-friendly lending environment.
Conclusion
The Southern California real estate market presents both opportunities and challenges for buyers and sellers. By staying informed about the latest trends, understanding the nuances of local markets, and working with experienced real estate professionals, you can navigate the market with confidence. Good luck with your real estate journey!
