When people ask me, “Is now a good time to buy a home?” I totally get where they’re coming from. Buying a home is one of the biggest decisions you can make, emotionally and financially, and with everything in the news, it’s natural to have doubts.

The truth is, there’s no one-size-fits-all answer. But here’s what I can share from my perspective, working with buyers across Long Beach, Los Angeles, Orange County, and the greater Southern California area.

The Current Market: Not as Uniform as You Might Think

In Southern California, we’re not seeing the massive price drops you might hear about in national headlines. Demand is still strong, especially in areas with good schools, access to the beach, and vibrant communities. But the pace has shifted. Homes are sitting on the market a bit longer than during the frenzy of 2021 and 2022, and that can create real opportunity for buyers.

Sellers are also more open to negotiation than they were a year ago. I’ve helped clients recently get closing costs covered, negotiate price reductions, or include home repairs as part of the deal. That kind of flexibility is something we didn’t see much of during the bidding wars.

Interest Rates: Higher Than We’re Used To but Not the Whole Story

Interest rates are definitely higher than what we saw a couple of years ago, and that can affect what you qualify for and how much house you can afford. It’s unlikely we’ll see 3 percent rates again anytime soon, but that doesn’t mean you’re locked into today’s rate forever.

If rates come down significantly in the future, you can always refinance. The important thing is to make sure your monthly payment is manageable and the home works for your lifestyle and long-term goals. If those boxes are checked, buying now can still make a lot of sense, especially in a market like Southern California, where demand tends to stay strong.

Buyers are starting to come off the sidelines with rates dropping to the mid-6 percent range as of March 22, 2025. The lower the rates go, the more people will decide to get back into house-hunting mode. But on the other side, the lower the rates go, the higher the probability some of these homeowners with a 3 percent interest rate, four kids, and a two-bedroom, one-bath house and literally bursting at the drywall seams may decide to take the plunge and sell their home to upgrade to a larger one. Or the empty nesters, typically homeowners whose children have grown up and moved out, may decide to sell their two-story, four-bedroom home and downsize to a nice one- or two-bedroom condo overlooking the beach. All that to say, it is going to be an interesting time over the next few years in real estate. I am excited to see how this will all unfold.

Is It Worth It to Refinance?

Great question, and one I hear a lot. The answer depends on your specific situation, but a common rule of thumb is that refinancing usually makes sense if interest rates drop by 1 percent or more from your current rate.

That said, everyone’s goals are different. Some people want to reduce their monthly payment, others want to shorten their loan term, and some want to pull cash out for renovations or other investments. I always recommend speaking with a lending professional who can walk you through the numbers and help you weigh the pros and cons.

You can also explore free online refinance calculators (Fannie Mae’s Calculator) to get a general idea of what the savings might look like. Just remember, a quick online estimate is a great start, but it doesn’t replace a conversation with someone who understands your full financial picture. I can connect with someone if you need recommendations.

So… Is Now a Good Time to Buy?

Here’s what I tell my clients:

• If you’re planning to stay in your home for five years or more and have stable income, it can be a smart time to buy. You may be able to negotiate better terms and build equity while others are sitting on the sidelines.
• If you’re unsure about your job situation, need to move again in the short term, or simply don’t feel financially ready, it might be better to wait.
• Trying to perfectly time the market is tough. But buying smart, with good guidance and a plan that aligns with your goals, is always a strong move.

Southern California is Unique

What’s true in Sacramento or Texas might not be true in Long Beach, Los Angeles, or Orange County. Our market tends to be more resilient due to location, weather, and the lifestyle Southern California offers. I work with people moving in from out of state all the time, and many are still buying, just a little more cautiously and strategically.

Final Thoughts

If you’re considering buying a home, the best first step isn’t rushing into house-hunting. It’s about getting informed. I’m always happy to talk through your situation with no pressure, whether you’re looking to buy in a few months or just exploring your options.

You can also check out one of my upcoming First-Time Home Buyer events. They’re casual, educational, and designed to help you make decisions with clarity and confidence.

Let’s build a community together.

-David Sanchez

 

About the Author

David Sanchez
Realtor | Community Ambassador | Living CA Realty Owner
David is a Long Beach-based real estate professional focused on helping people across Southern California make confident real estate decisions. Known for his honest guidance and deep local knowledge, he’s passionate about building community through real estate and social events.

Have questions or just want to chat? Visit YourRealtorDavid.com or LivingCARealty.com, or call or text 562.537.9206.