The Great “Un-Freeze”: Why 2026 is Defining a New Era for Strategic Movers

For nearly three years, the Southern California housing market has been characterized by a quiet tension. Homeowners locked in by “golden handcuffs”—those 2.5% to 3.5% mortgage rates—were understandably hesitant to move. This “lock-in effect” choked off inventory, but as we move into February 2026, the data indicates that the “Great Un-Freeze” has officially begun.

The Shift in Seller Psychology

The novelty of low rates is finally being outweighed by the reality of life changes. Whether it is growing families, remote work shifts, or the simple need for a fresh start, homeowners are finally ready to move again.

By the Numbers: What to Expect in 2026

• Inventory on the Rise: Active listings in Los Angeles and Orange Counties are projected to grow by nearly 10% this year, the first sustained increase since 2019.
• Normalization of Rates: Mortgage rates are settling into a “new normal” around 6.3%, providing the stability needed for confident planning.
• A Balanced Market: We are moving away from frenzied bidding wars toward a market where contingencies and appraisal gaps are negotiated fairly.

Bottom Line

2026 isn’t a year for impulsive moves; it’s a year for strategic ones. Whether you’re looking to upsize or leverage your equity, doors that have been shut for years are finally opening.