Real estate broker discusses concerns around California housing buying rates

March 5, 2026 - 09:35

Real estate broker Mark Powell recently outlined significant concerns regarding home purchasing activity across California, noting a marked slowdown in sales velocity. Appearing on a local morning program, Powell pointed to the persistent combination of high mortgage rates and elevated property prices as the primary barrier for potential buyers, creating a pronounced affordability crisis.

The market, he explained, is caught in a standoff. Sellers, many of whom secured historically low interest rates years ago, are reluctant to list their properties and enter a higher-rate environment as buyers. Meanwhile, buyers are grappling with monthly payments that are dramatically higher than they were just a few years ago, even for similarly priced homes. This has led to extended time on market for listings and a noticeable drop in transaction volume compared to the frenetic pace of the previous decade.

Powell emphasized that this stagnation impacts more than just individual transactions; it affects the overall health of the state's housing ecosystem. A low turnover rate freezes mobility, making it difficult for growing families to upgrade and for new entrants to achieve homeownership. While some price corrections have occurred in certain areas, they have not been sufficient to offset the financial burden imposed by current financing costs. The broker's analysis suggests the market is in a period of adjustment, with both buyers and sellers cautiously waiting for a shift in economic conditions before committing to major moves.