# SoCal Real Estate Update: Oct 13, 2026 By Jeff Wermuth (@jeffwermuth) · Published 2026-10-13 Canonical: https://voce.com/@jeffwermuth/socal-real-estate-update-oct-2026-b2txnf --- Mortgage rates surged to a **7.40% average** this week ([Freddie Mac](https://www.freddiemac.com/pmms?_cb=20261008a)) just as major insurers State Farm and Allstate signaled a return to the California market ([CA Dept of Insurance](https://www.insurance.ca.gov/0400-news/0102-alerts/2026/Major-California-home-insurers-move-to-r.cfm)). This October 13 update reveals a Southern California market in transition: while inventory is growing in Riverside to provide buyer leverage, Orange County prices remain resilient despite rising borrowing costs. This divergence between counties matters. Riverside’s inventory growth is creating genuine negotiation room, while the "insurance desert" is finally showing signs of life, potentially clearing the path for new home closures across the region. #### Key Takeaways - Mortgage rates rose to \*\*7.40%\*\* this week, increasing the cost of entry for SoCal buyers. - Orange County inventory remains tight at \*\*3.1 months\*\*, keeping prices significantly higher than last year. - Riverside County offers more leverage for buyers with \*\*4.0 months\*\* of supply and longer selling times. - State Farm and Allstate have filed plans to reopen for new business, a positive sign for the CA insurance crisis. ## Mortgage Rates Hit 7.40% The cost of borrowing took another step up this week. According to the [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms?_cb=20261008a) released October 8, the 30-year fixed-rate mortgage averaged **7.40%**, a significant jump from 7.28% just one week prior. For buyers looking at shorter terms, the 15-year fixed-rate mortgage now averages 6.73%. 7.40%Average 30-Year Fixed Mortgage Rate[Freddie Mac](https://www.freddiemac.com/pmms?_cb=20261008a) While these are national figures, they represent a quarter-point shift that can impact monthly payments by hundreds of dollars. Local buyers should prioritize rate locks or explore creative financing to manage these higher costs. ## Orange County vs. Riverside County: The August Snapshot Local market data from the [California Association of Realtors (C.A.R.)](https://www.car.org/aboutus/mediacenter/newsreleases/2026releases/august2026sales) shows that the late summer heat cooled slightly in terms of pricing, though the "inventory gap" between our two primary counties continues to widen. Measure Orange County Riverside County **Median Sold Price** $1,452,500 $632,990 **Monthly Price Change** −1.5% −2.5% **Annual Price Change** +4.9% +1.3% **Inventory (Months)** 3.1 Months 4.0 Months **Median Days on Market** 27 Days 40 Days ![Chart showing Southern California real estate market trends for 2026.](https://convex.voce.com/api/storage/5b99fb20-899f-4411-90bc-85d43500bc7e) In **Orange County**, the market remains exceptionally tight. With only 3.1 months of inventory and homes selling in under a month, sellers still hold the upper hand. Conversely, **Riverside County** is showing signs of a buyer's shift. Inventory has climbed to a 4.0-month supply, and homes are sitting for an average of 40 days. Riverside’s greater inventory and longer selling time suggest more **room for negotiation** than we are seeing in coastal OC. If you are a buyer feeling priced out of Tustin or Irvine, the Riverside market is currently offering the most leverage we've seen all year. **Pro Tip** Riverside currently offers the most leverage for buyers we've seen this year. Look for properties with 'Days on Market' above 30 to negotiate seller concessions or rate buy-downs. ## California Insurance Watch: Signs of Life A significant shift is occurring in the state’s property insurance landscape. On September 18, [Insurance Commissioner Ricardo Lara reported](https://www.insurance.ca.gov/0400-news/0102-alerts/2026/Major-California-home-insurers-move-to-r.cfm) that State Farm and Allstate have both filed plans to begin writing new residential policies in California again. While this is encouraging, these companies are not yet fully open for new business. The filings remain under review, and coverage will often depend on specific safety certifications. State Farm, for instance, is prioritizing homes that meet [IBHS Wildfire Prepared Home](https://www.insurance.ca.gov/0400-news/0102-alerts/2026/Major-California-home-insurers-move-to-r.cfm) safety standards. For Southern California homeowners, hardening your property against wildfire is no longer just about safety—it is becoming a prerequisite for standard insurance options. ## The Bottom Line With rates at 7.40%, buyers must focus on the total monthly payment. In Riverside, the 40-day average selling time provides space for seller concessions. In Orange County, the tight 3.1-month supply means sellers still hold the edge, but pricing must be aggressive to compete. Have questions about your neighborhood? Call the Wizard. Let’s get to work! #### Ready to Make Your Move? Whether you are buying or selling, I can help you navigate these shifting market conditions. [Call the Wizard](/@jeffwermuth)