Home prices in Southern California fell slightly in January. This is because high mortgage interest rates continued to put pressure on future buyers.
According to Zillow, average home prices for the six county region fell 0.4% to $862,115 from December to January, marking the sixth consecutive month of decline.
The price is a record 1.9% off in July, but some economists say home buyers and sellers shouldn’t expect a plunge in home values. They were still above it a year ago.
Still, more homes are colliding with the market, mortgage rates remain high, creating a situation where supply is slightly higher and demand is slightly lower.
As a result, annual price growth has slowed down. Last month, home prices in Southern California were 3.9% higher than a year ago. In April, prices were 9.5% higher than a year ago.
Some economists say price growth will either drop even further or remain flat this year, but supply shortages could halt the value as it will drop significantly.
Zillow’s chief economist Skylar Olsen said the January fire that tore Los Angeles County could put more pressure on home prices.
At the same time, if the cost of guaranteeing a home increases as a result of a fire, future home buyers could result in lower payments.
For now, Zillow forecasts a 0.2% decline in total metro area home prices in Los Angeles and Orange counties between next year and January 2026.
City and Neighborhood Home Prices
Beware of readers
Welcome to the Los Angeles Times Real Estate Tracker. Each month we publish a report containing data on home prices, mortgage fees and rental prices. Reporters will explain the meaning of new data in Los Angeles and the surrounding area, and help them understand what they can expect to pay for apartments and homes. You can read the breakdown of last month’s real estate here.
Explore home prices and rents in January
Use the table below to search for home sales and apartment rental prices by city, neighborhood, and county.
Rental prices in Southern California
Last year, many parts of Southern California have been allowed to rent apartments, but the January LA County fire could reverse the downward trend.
Experts said rising vacancy levels forced landlords to lower rents, but the fire wiped out thousands of homes and suddenly thrust many people into the rental market.
When these people searched for homes, there were extensive reports of illegally priced gouging, with some landlords increasing rent by more than 50%.
Authorities have since filed several criminal and civil lawsuits against landlords and real estate agents, and it is unclear how competitive the larger market will be in the coming months and every year.
Most of the destroyed homes look like single-family homes, but some experts say the biggest increase in rents for large units adjacent to the Pacific Palisade and Altadena burn areas, but the pressure on rising costs It is said that it is expected to decrease as it decreases. Disaster zone.
The rental data for January will be considered early on what may come.
Santa Monica, adjacent to Pacific Palisade’s LA City district, saw a median rent reaching $2,501 in January, reaching $2,501 in January, according to data from ApartmentList.
Throughout the city of Los Angeles, including many areas not adjacent to Palisades and fires, central apartment rents have been immersed in $2,057 0.15% from December.
Apartment list analyst Rob Warnock warned that the company’s data does not include single-family homes and that rents could bounce around the month, even if normal.
“I think it will take months to really know if rents tend to differ in the aftermath of the fire,” he said in an email.
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