Los Angeles Housing Market 2026: Current Prices, Trends & Expert Forecast
The Los Angeles housing market in January 2026 shows stabilization after years of volatility. The median home price in LA County is $895,000-$942,000, up modestly 0.1-0.6% year-over-year. Mortgage rates have dropped to 6.15% (their 2025 low), while homes are averaging 56 days on market—giving buyers more time to evaluate. Experts forecast 1-4% price appreciation in 2026 with rates potentially dipping below 6% by year-end.
After years of pandemic-era volatility, the Los Angeles housing market is entering a more balanced phase. Understanding current conditions is critical whether you're buying, selling, or simply tracking your property's value. Here's my analysis as a local real estate professional with 13+ years in LA County.
Current Market Conditions: What the Data Shows
The LA housing market is characterized by three key dynamics: stabilizing prices, improving inventory, and extended selling timelines. This represents a meaningful shift from the frenzied conditions of 2021-2022 when homes sold in days with multiple competing offers.
According to the California Association of REALTORS® November 2025 report, homes statewide are selling at 98.3% of list price (down from 99.4% a year ago), indicating buyers have slightly more negotiating power. The statewide unsold inventory index stands at approximately 2.7 months—still below the 6-month threshold that would indicate a true buyer's market, but improving.
Home Prices by Neighborhood
Los Angeles isn't one market—it's hundreds of micro-markets with dramatically different price points and conditions. Here's how prices break down across major areas:
| Area | Median Price Range | Market Type | Trend |
|---|---|---|---|
| Pacific Palisades | $6.0M+ | Ultra-Premium | ↑ Strong |
| Beverly Hills | $3.5M - $8M+ | Luxury | ↑ Strong |
| Santa Monica | $2.5M - $4M+ | Premium | → Stable |
| Silver Lake | $1.2M - $2M | High Demand | → Stable |
| Pasadena | $900K - $1.5M | Competitive | → Stable |
| Culver City | $1.0M - $1.6M | Family Hot Spot | ↑ Moderate |
| Highland Park | $700K - $950K | Emerging | → Stable |
| Glendale | $650K - $900K | Value Zone | → Stable |
| San Fernando Valley | $600K - $1.2M | Suburban Family | → Stable |
The luxury segment ($1M+) showed 28.7% year-over-year sales growth in December 2024, while the sub-$500K segment declined 0.4%. High-end properties continue driving median price increases even as the broader market stabilizes.
Mortgage Rates: 2026 Outlook
Mortgage rates ended 2025 at their lowest point of the year—6.15% for a 30-year fixed—providing relief after rates touched 7% earlier in the year. This is down from 6.91% a year ago and well below the 7%+ peaks seen in late 2023.
30-Year Fixed Rate: Recent History & Forecast
What Industry Forecasters Predict
- National Association of Realtors: 6.0% average for Q1 2026 (optimistic)
- Mortgage Bankers Association: 6.3-6.4% through 2026 (conservative)
- Fannie Mae: Below 6% by late 2026, ending around 5.9%
- Freddie Mac: Gradual decline, but not dramatic
Bottom Line: Don't expect a return to 3% pandemic-era rates. The new normal is likely 5.5-6.5%. However, current rates represent a meaningful improvement from 2023-2024 peaks, and stability helps buyers plan with confidence.
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Free, no-obligation home valuation2026 Market Forecast: What to Expect
Neighborhood Market Conditions
Tech worker influx and young professional demand keeping competition intense. Well-priced homes still attract multiple offers.
Strong family demand balanced by increasing inventory. Good schools driving consistent interest. Fair negotiations possible.
Luxury condo oversupply in downtown. Outlying areas seeing longer sale times. Price negotiations common.
Strategic Recommendations
- Get pre-approved now—rates at their lowest in over a year
- Take your time—56 days on market means less pressure
- Negotiate—seller concessions and credits are back on the table
- Consider emerging areas—Highland Park, Glendale offer value
- Include contingencies—inspection and appraisal protections possible
- Explore creative financing—2-1 buydowns, FHA, VA loans
- Price realistically—overpriced homes sit 60+ days
- Invest in presentation—staging and photos matter more than ever
- Prepare for negotiations—buyers expect concessions
- Complete repairs upfront—pre-inspections reduce deal fall-through
- Be patient—30-45 days is the new normal, not 7 days
- Time strategically—spring (March-May) remains optimal
Insurance Alert: California's wildfire insurance crisis is increasingly affecting buyer decisions. Insurance premiums and availability should be factored into affordability calculations, especially in hillside and fire-prone areas.
Frequently Asked Questions
As of January 2026, the median home price in Los Angeles County is approximately $895,000-$942,000 depending on the data source. Redfin reports $900,000 for November 2025, while California Association of REALTORS® data shows $942,610. The City of Los Angeles specifically shows a median of approximately $1.0 million, up 2.5% year-over-year.
As of late December 2025, the average 30-year fixed mortgage rate is 6.15% according to Freddie Mac—the lowest level of 2025 and down from 6.91% a year earlier. The 15-year fixed rate averages 5.44%. Experts forecast rates will remain in the 6.0-6.4% range through Q1 2026, potentially dipping below 6% by late 2026.
Experts do not expect a housing market crash in 2026. Limited supply (still below historical norms), strong job markets, and continued population demand support prices. Most forecasts predict modest appreciation of 1-4% rather than significant declines. The market is moving toward healthy balance rather than collapse.
Homes in Los Angeles County are averaging 56 days on market as of November 2025, up from 47 days a year earlier. In the City of Los Angeles specifically, homes average 61 days. Statewide, the median is 32 days, up from 26 days a year ago. This increase gives buyers more time to evaluate properties and negotiate terms.
2026 presents opportunities for prepared buyers. Mortgage rates have stabilized in the low 6% range, price growth has moderated to 1-4%, and inventory is increasing. Buyers now have more negotiating power and time to evaluate properties. The key is getting pre-approved, understanding your budget, and working with an experienced local agent.
Spring (March-May) and fall (September-November) traditionally offer optimal market conditions with maximum inventory and buyer activity. However, less competition during off-peak months (winter, summer) can benefit strategic buyers and sellers. Work with a local agent to time your move based on current conditions.
Ready to Make Your Move in 2026?
Whether you're buying your first home, selling to downsize, or investing in LA real estate, let's discuss your goals and develop a strategy for today's market.
The Borges Real Estate Team | 680 E Colorado Blvd Suite 180, Pasadena, CA 91101
