California's real estate market is anticipated to encounter both challenges and opportunities in the coming years. Home prices have risen, with the median price hitting $838,850 in January 2025. Climate-related costs, especially for insurance, are expected to affect affordability. Despite increased inventory, competition remains intense in desirable areas. Strict zoning laws and high construction costs limit new housing development, keeping pressure on prices. Nonetheless, California real estate is considered a solid investment.
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