Housing Inventory Rises in Southern California — Spring 2026 Outlook

By Secure Choice Lending · March 14, 2026 · 6 min read

Active listings in the Inland Empire rose 12% year-over-year in February, offering buyers more options than they've had since 2021. While prices remain elevated, the shift toward a more balanced market is creating room for negotiation. Here's what to watch as the spring buying season heats up.

After years of historically tight supply, Southern California's housing market is showing encouraging signs of balance. Active listings across the Inland Empire rose 12% year-over-year in February 2026, according to data from the California Association of Realtors — the largest inventory increase since 2021.

Inventory by County (February 2026)

Riverside County

+14% YoY

San Bernardino County

+11% YoY

Los Angeles County

+8% YoY

Orange County

+6% YoY

Despite the uptick in supply, months of inventory remains below the 4–6 month threshold economists consider a balanced market. Riverside County currently sits at 2.8 months, while Los Angeles holds at 2.2 months. That said, conditions are improving and buyers have more options than they've seen in years.

What's Driving the Increase?

• More sellers are coming to market after holding back through 2024–2025 due to the 'lock-in effect' of sub-3% mortgages.
• New construction starts in the Inland Empire rose 18% in Q4 2025, adding more homes to the pipeline.
• Extended days-on-market are giving buyers more time to negotiate without bidding wars.
• Price reductions are more common — roughly 28% of active listings received a price cut in February.

Spring Outlook: Our team expects inventory to continue rising through April and May as more sellers list ahead of peak season. We anticipate Riverside County reaching 3.2–3.5 months of supply by June 2026.

Implications for Buyers and Sellers

For Buyers

More inventory means more choices, less pressure to waive contingencies, and greater room to negotiate seller concessions (like rate buydowns). Buyers who were priced out or outbid in 2023–2024 should revisit their search this spring.

For Sellers

Pricing competitively is more important than ever. Overpriced homes are sitting longer on the market. Working with an experienced agent and understanding your neighborhood's micro-market will be key to a successful sale.

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