Southern California home prices fell in June, marking the second consecutive time, with a decline in value from the previous year.
In June, average home prices in the six counties Southern California area fell 0.2% to $875,128 from May, according to Zillow data. Prices have decreased by 0.9% since June 2024.
Economists and real estate agents say a number of factors are slowing down the market, including high mortgage rates, higher inventory levels and economic uncertainty caused by tariffs.
The year-over-year price decline in June followed a similar decline in May. Prior to that, prices had not fallen every year since July 2023.
At the time, home prices were falling as mortgage rates increased knocked many buyers out of the market. As sellers retreated, value began to increase as the number of items sold plummeted, and they didn’t want to abandon the mortgage they took at a rate of more than 3% during the pandemic.
However, the stock images have changed.
In June, Los Angeles County sold 35% more than a year ago, with similar increases elsewhere in Southern California.
Real estate agents want current homeowners to move more and more, rather than keeping ultra-low mortgage rates. However, many first-time buyers remain locked out without access to equity.
Adding economic uncertainty will help you win a market that has been significantly downshifted.
If Trump’s policies ultimately push the economy into a recession, some economists say housing prices could drop even further.
For now, Zillow predicts that the economy will avoid a recession and only slightly lower home prices. By June 2026, real estate companies expect home prices in the Los Angeles-Orange County Metro area to be 1.5% lower than they currently do.
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 June
Use the table below to search for home sales and apartment rental prices by city, neighborhood, and county.
Rental prices in Southern California
In 2024, many parts of Southern California were seeking apartment rent, but the January fire in LA County could have reversed the downward trend in some locations.
Housing analysts say rising vacancy levels since 2022 have forced landlords to lower rent. However, the fire destroyed thousands of homes and suddenly pushed many people into the rental market.
Most of the destroyed homes are single-family homes, and some housing and disaster recovery experts hope that the biggest rent increase adjacent to the Pacific Palisade and Altadena burn areas will reduce upward pressure on units small and far away from the disaster zone.
A recent LA Times analysis of Zillow Data found that the closest zip code to the fire would increase rents than other parts of the county from December to April.
Other data sources show similar trends.
Median rents rose 4.1% in June in Hardhit Pacific Palisades and neighboring Santa Monica, according to apartment list data.
Rent fell 0.85% last month across Los Angeles, including many areas not adjacent to Palisades and fires.
There is no data for Altadena in the apartment list, but no data for the adjacent Pasadena city. Rents rose 5.4% in June of the previous year.
Source link
