Housing Tracker: Southern California home values drop in August

"In August, the average home price across the six-county Southern California region fell 0.7% from July to $857,770, according to data from Zillow. Prices were down 1.7% from August 2024. Economists and real estate agents say a variety of factors has slowed the market, 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."

"The inventory picture, however, is changing. In August, there were 26% more homes for sale than a year earlier in Los Angeles County, with similar increases seen elsewhere in Southern California. 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."

"If the Trump administration's policies end up pushing the economy into a recession, some economists say home prices could drop much further. For now, Zillow is forecasting that the economy will avoid a recession and that home prices will increase a year from now. The real estate firm expects that by August 2026, home prices in the Los Angeles-Orange County metro region will be 0.6% higher than they are now, though that number is lower than the estimated national increase of 1.2%."

Average Southern California home prices fell 0.7% from July to $857,770 in August and were down 1.7% from August 2024. Rising mortgage rates, increased inventory and economic uncertainty from tariffs have slowed buyer activity. Inventory rose about 26% year-over-year in Los Angeles County, as more homeowners opt to move despite holding ultra-low pandemic-era mortgages. Many first-time buyers remain priced out without equity. If policy-driven economic weakness triggers a recession, prices could fall further. Zillow forecasts no recession and predicts Los Angeles–Orange County prices will be 0.6% higher by August 2026, below the national 1.2% gain.

Read at Los Angeles Times