Southern California home prices dipped slightly in January. It’s the third month in a row that prices have fallen, and the eighth time in the last nine months.
In January, the average home price fell to $855,335, according to data from Zillow. Prices were down .01% month over month and 0.9% year over year.
It’s the lowest that Southern California home values have been since March 2024.
The dip reflects a slow winter market with tepid sales and low inventory. But economists and real estate agents say a variety of factors have contributed to the broader decline over the last year, including high mortgage rates, rising inventory and economic uncertainty stemming from tariffs.
Until the recent declines, July 2023 was the last time that year-over-year prices had fallen. Back then, rising mortgage rates were knocking many buyers out of the market. Values started increasing again when the number of homes for sale plunged as sellers backed away, unwilling to give up mortgages they took out earlier in the pandemic with rates of 3% or lower.
Real estate agents say homeowners increasingly want to take the next step in their lives and are deciding to move rather than hold on to their ultra-low mortgage rates. But many first-time buyers, without access to equity, remain locked out.
Add on the economic uncertainty and you get a market that’s noticeably downshifted.
If the Trump administration’s policies end up pushing the economy into a recession, some economists say home prices could drop much further.
Even accounting for the winter slowdown, January was an extremely slow month for new inventory in L.A. County. Only 3,472 new homes were listed for sale in January; that’s 1.4% less than December, and the lowest total since January 2024.
For now, Zillow is forecasting that the economy will avoid a recession and home prices will increase over the next year. The real estate firm expects that over the course of the year, home prices will rise 1.2% both nationally and in L.A.
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 January
Use the tables below to search for home sale prices and apartment rental prices by city, neighborhood and county.
Rental prices in Southern California
Rents continued to get cheaper across L.A., dropping to $2,163 in January. That’s the lowest median rent since January 2022.
A variety of factors have contributed to the slowdown, but the simplest explanation is a case of supply and demand. In 2025, 15,095 multifamily units were completed in L.A., an 18% increase year over year and the second-highest total in the last decade.
Meanwhile, L.A. County’s population shrank by 28,000 in 2025. As a result, vacancy rates climbed to 5.3% at the end of 2025, leading some tenants to declare L.A. a renter’s market.
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