Housing affordability in California showed slight improvement in the third quarter, giving San Gabriel Valley buyers a modest break after months of steep costs. The California Association of Realtors’ latest Housing Affordability Index (HAI) rose two percentage points from the previous quarter, reaching 17 percent statewide. The index also increased one point compared with the same period last year, signaling that moderating home prices are beginning to offset persistently high borrowing costs.
Local agents in El Monte, Baldwin Park, and Rosemead report similar trends, noting slower price growth and more balanced inventory levels since late summer. “Homes are still expensive, but buyers have more room to negotiate now than they did six months ago,” said one Rosemead Realtor.
Prices Ease, Payments Still High
The median home price for existing single-family homes dipped in the third quarter as competition cooled and new listings increased. That shift contributed to a 3.8 percent decline in the average monthly mortgage payment compared with the second quarter. Still, payments edged 1.3 percent higher than a year earlier, with the typical monthly cost—taxes and insurance included—now about $5,590 statewide.
To afford that payment, a California household needs an annual income of at least $223,600, underscoring the ongoing affordability gap that continues to pressure many San Gabriel Valley families.
Cautious Optimism for Buyers
As the housing market transitions into its seasonal slowdown, experts expect prices to soften further through the winter. The California Association of Realtors projects that affordability could improve again if mortgage rates decline and economic conditions stabilize. While rates remain near record highs, recent easing has already given some buyers a small advantage.
For communities like South El Monte and Irwindale—where starter homes often drive local demand—any relief in rates or prices could help more first-time buyers enter the market heading into 2026.
More statewide housing data is available through the California Association of Realtors at car.org.
