Housing tracker: Southern California home prices dipped in January

In January, Southern California home prices experienced a slight decline of 0.4%, bringing the average price to $862,115. This marks six consecutive months of declining prices, influenced by high mortgage rates and a more balanced market. However, prices are still 1.9% higher than a year ago. Economists predict continued slow growth or flat pricing moving forward, with potential upward pressure from recent fires in Los Angeles County damaging over 12,000 homes. Zillow forecasts prices in the Los Angeles and Orange counties to remain mostly unchanged in the coming year.

Despite a slight decline in January home prices, Southern California's housing market remains above last year's levels, leaning on supply constraints and high mortgage rates.

Economists suggest that while price growth will likely stall this year, especially after recent calendar declines, a lack of housing supply will prevent significant price drops.

Read at Los Angeles Times