Introduction to Southern California Home Prices
Southern California home prices ticked up in February, the first increase in seven months. The average home price in the six-county region rose 0.3% from January to $874,382 in February, according to Zillow. Home prices had declined each month since August, which economists said was a reflection of tapped-out consumers and seasonal factors. High home values and high mortgage rates made it difficult for potential buyers to bid up housing further, and the market also tends to slow in the fall and winter.
Factors Affecting Home Prices
The declines were small, however, with January’s prices only 1.6% off the all-time high reached last summer. February’s small uptick, which coincided with a slight decline in mortgage rates, could signal values are set to escalate during the typically busy spring selling season. But Orphe Divounguy, a senior economist with Zillow, doesn’t see much change. He said mortgage rates this year aren’t likely to change much from the mid-6% range where they are today, which should keep potential home buyers from paying much more for a house or condo. Existing homeowners are also increasingly choosing to sell, which also should keep a lid on prices.
Increase in Homes for Sale
According to Zillow, there were 32% more homes for sale in L.A. County than in February 2024, which experts attribute to existing homeowners who increasingly want to move rather than hold on to cheap mortgages acquired during the pandemic. By February 2026, Zillow expects home prices across Los Angeles and Orange counties to have risen just 0.1% from last month.
Housing prices by city and neighborhood
Note to readers: Welcome to the Los Angeles Times’ Real Estate Tracker. Every month we will publish a report with data on housing prices, mortgage rates and rental prices. Our reporters will explain what the new data mean for Los Angeles and surrounding areas and help you understand what you can expect to pay for an apartment or house. You can read last month’s real estate breakdown here.
Explore home prices and rents for February
Use the tables below to search for home sale prices and apartment rental prices by city, neighborhood and county.
Rental prices in Southern California
In the last year, asking rents for apartments in many parts of Southern California have ticked down, but January’s L.A. County fires could upend the downward trend. Experts have said rising vacancy levels had forced landlords to accept less in rent, but the fires wiped away thousands of homes, suddenly thrusting many people into the rental market. As these people searched for housing, there were widespread reports of illegal price gouging, with some landlords increasing rent by more than 50%. Authorities have since filed several criminal and civil cases against landlords and real estate agents, and it’s unclear just how much more competitive the larger market will be in the coming months and year.
Impact of Fires on Rental Prices
Most homes destroyed were single-family houses and some experts say they expect the largest increases in rent to be in larger units adjacent to burn areas in Pacific Palisades and Altadena, with upward pressure on costs diminishing as units become smaller and farther away from the disaster zone. January and February rent data give an early look into what could be coming. In Santa Monica, which borders the L.A. city neighborhood of Pacific Palisades, median rent rose 1.12% from January and 3.06% from December to reach $2,527 last month, according to data from ApartmentList. Rob Warnock, an analyst with ApartmentList, said that rate of growth is faster than in previous years, something also seen near the Eaton fire in Glendale and Pasadena, though to a lesser extent.
Conclusion
In conclusion, Southern California home prices and rental prices are experiencing changes due to various factors such as mortgage rates, seasonal trends, and the impact of fires. While home prices have increased slightly, rental prices are also showing signs of growth, particularly in areas affected by the fires. It is essential for potential buyers and renters to stay informed about the market trends and be prepared for the challenges and opportunities that come with them.
FAQs
- Q: What is the current average home price in Southern California?
A: The average home price in the six-county region is $874,382 as of February. - Q: How have mortgage rates affected home prices?
A: High mortgage rates have made it difficult for potential buyers to bid up housing further, contributing to the decline in home prices. - Q: What impact have the L.A. County fires had on rental prices?
A: The fires have led to an increase in rental prices, particularly in areas adjacent to the burn areas, due to the sudden influx of people into the rental market. - Q: Where can I find data on home sale prices and apartment rental prices by city, neighborhood, and county?
A: You can use the tables provided in the Real Estate Tracker report to search for home sale prices and apartment rental prices by city, neighborhood, and county.
