Southern California dwelling costs dropped in June, marking the second consecutive month that values declined from a 12 months earlier.
In June, the typical dwelling worth throughout the six-county Southern California area fell 0.2% from Could to $875,128, in keeping with knowledge from Zillow. Costs have been down 0.9% from June 2024.
Economists and actual property brokers say quite a lot of elements have slowed the market, together with excessive mortgage charges, rising stock ranges and financial uncertainty stemming from tariffs.
The year-over-year worth decline in June adopted an analogous drop in Could. Earlier than that, costs hadn’t fallen on an annual foundation since July 2023.
Again then, dwelling costs have been falling as a result of rising mortgage charges knocked many patrons out of the market. Values began rising once more when the variety of properties on the market plunged as sellers additionally backed away, unwilling to surrender mortgages they took out through the pandemic with charges of three% and decrease.
The stock image, nonetheless, is altering.
In June, there have been 35% extra properties on the market than a 12 months earlier in Los Angeles County, with comparable will increase seen elsewhere in Southern California.
Actual property brokers say present owners more and more need to transfer moderately than maintain on to their ultra-low mortgage charges. However many first-time patrons, with out entry to fairness, stay locked out.
Add on the financial uncertainty and also you get a market that’s noticeably downshifted.
If the Trump administration’s insurance policies find yourself pushing the financial system right into a recession, some economists say dwelling costs may drop a lot additional.
For now, Zillow is forecasting that the financial system will keep away from a recession and for dwelling costs to say no solely barely. By June 2026, the true property agency expects dwelling costs within the Los Angeles-Orange County metro area to be 1.5% decrease than they’re now.
Housing costs by metropolis and neighborhood
Notice to readers
Welcome to the Los Angeles Instances’ Actual Property Tracker. Each month we are going to publish a report with knowledge on housing costs, mortgage charges and rental costs. Our reporters will clarify what the brand new knowledge imply for Los Angeles and surrounding areas and assist you to perceive what you may count on to pay for an condominium or home. You’ll be able to learn final month’s actual property breakdown right here.
Discover dwelling costs and rents for June
Use the tables under to seek for dwelling sale costs and condominium rental costs by metropolis, neighborhood and county.
Rental costs in Southern California
In 2024, asking rents for residences in lots of components of Southern California additionally ticked down, however the January fires in L.A. County may very well be upending the downward development in some areas.
Housing analysts have mentioned that rising emptiness ranges since 2022 had pressured landlords to simply accept much less in hire. However the fires destroyed hundreds of properties, out of the blue thrusting many individuals into the rental market.
Most properties destroyed have been single-family homes, and a few housing and disaster-recovery specialists say they count on the biggest hire will increase to be in bigger items adjoining to burn areas in Pacific Palisades and Altadena, with upward strain on rents diminishing for items which are smaller and farther away from the catastrophe zones.
A current L.A. Instances evaluation of Zillow knowledge discovered that in ZIP Codes closest to the fires, rents rose greater than in the remainder of the county from December to April.
Different knowledge sources present comparable tendencies.
In Santa Monica, which borders the hard-hit Pacific Palisades neighborhood, the median hire rose 4.1% in June from a 12 months earlier, in keeping with knowledge from House Listing.
Throughout Los Angeles, which incorporates the Palisades and lots of neighborhoods not adjoining to any hearth, rents dropped 0.85% final month.
House Listing doesn’t have knowledge for Altadena, but it surely does for the adjoining metropolis of Pasadena. Rents there rose 5.4% in June from a 12 months earlier.
