House prices in Southern California fell slightly in January as high mortgage rates continued to weigh potential buyers.
According to Zillow, average home prices in six counties fell 0.4% from December to $862,115 in January, the sixth straight month of decline.
Prices are now 1.9% in July, but some economists say potential home buyers and sellers should not expect home values to fall – one reason behind the shift is that markets usually slow down in the fall and winter still a year ago place.
Still, more and more homes are hitting the market, with mortgage rates still high, resulting in a slightly higher supply and slightly lower demand.
As a result, annual price growth slowed. Last month, house prices in Southern California rose 3.9% from the same period last year. Prices in April were 9.5% higher than the same period last year.
Some economists say price gains should slow further this year or stay flat, but the lack of supply may stop a significant drop in value.
Skylar Olsen, chief economist at Zillow, said the January fires through Los Angeles County could put some additional upward pressure on house prices as they severely damaged or destroyed more than 12,000 homes.
Meanwhile, if the cost of insured homes increases due to the fire, it could result in potential home buyers paying less.
Currently, Zillow predicts that house prices in the United Metro Area of Los Angeles and Orange County have basically remained unchanged, down 0.2% between last month and January 2026 between last month and January 2026.
Housing prices in cities and nearby
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Welcome to the Los Angeles Times real estate tracker. We publish a report every month with data on house prices, mortgage rates and rental prices. Our reporters will explain what the new data means for Los Angeles and surrounding areas and help you understand what you expect to pay for an apartment or home. You can read about the real estate failure last month here.
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Rent prices in Southern California
Last year, inquiries about apartments in many areas of Southern California about rents had fallen, but January’s Los Angeles County fires could upend the downward trend.
Experts say the rise in vacancy levels forced landlords to accept less rent, but the fires wiped out thousands of homes and suddenly pushed many into the rental market.
When these people searched for housing, there were widespread reports of illegal price fraud, and some landlords increased rents by more than 50%.
Since then, authorities have filed several criminal and civil cases against landlords and real estate agents, and it is not clear that the larger market will be more competitive in the coming months and year.
Most of the destroyed homes appear to be single-family homes, and some experts say they expect the largest increase in rents, in larger units near the burning areas of Palisade and Altadna in the Pacific, due to lower up and down pressure on costs , as the unit is smaller, it is far away from the disaster area.
Rental data for January can study what is coming soon.
Median rents rose 2% from December to 2,501 in January, in Santa Monica, bordering the city of Los Angeles, in Pacific Palisades, according to the apartment list. Dollar.
Median apartment rents fell 0.15% from December to $2,057 in all cities of Los Angeles, including Palisades and many neighborhoods that are not adjacent to any fires.
Rob Warnock, an analyst with the apartment list, warned that the company’s data does not include single-family homes, and rents can rebound around monthly or so even during normal times.
“I think it will take months to see if the rent is different after the fire,” he said in an email.
