The Southern California real estate market declined last month.
The average home price in the six-county region fell 0.2% in December from November to $867,042, according to Zillow, marking the fifth straight month of declines.
Prices are currently 1.5% below July's all-time high, but some economists say potential homebuyers and sellers shouldn't expect a plunge - one of the reasons behind the shift is that the market typically falls in the fall and winter. slow down, prices will also fall. Still higher than a year ago.
Still, more homes are coming to the market and mortgage rates remain high, creating a situation of slightly more supply and slightly less demand.
As a result, annual price growth slowed. Last month, Southern California home prices rose 4.3% year over year, compared with a peak of 9.5% in April.
Some economists expect price growth to slow further this year, but not to go negative because there still won't be enough supply to satisfy everyone who wants to live here.
That was before the Palisades and Eaton fires destroyed or severely damaged more than 11,000 homes, suddenly forcing thousands more families to find housing.
Note to readers
Welcome to the Los Angeles Times Real Estate Tracker. Each month we publish a report with data on house prices, mortgage rates and rental prices. Our reporters will explain what the new data means for Los Angeles and the surrounding areas, and help you understand what you can expect to pay for a condo or house. You can read last month’s real estate breakdown here.
Use the table below to search for home sales prices and apartment rental prices by city, neighborhood, and county.
Apartment rents have declined in many areas of Southern California over the past year.
Experts say the trend is driven by rising vacancies, which is forcing some landlords to accept less rent. Vacancy rates are rising as the supply of apartments continues to expand while consumer concerns about the economy and inflation reduce demand.
Additionally, as the smaller Generation Z enters the apartment market, the aging Millennial generation begins to own homes.
Potential tenants shouldn't get too excited, however. Rents remain very high, and fires that broke out in Los Angeles County in January are expected to put upward pressure on rents, particularly in the neighborhoods of Pacific Palisades and Altadena.
In December, before the fire, the median rent for vacant apartments of all sizes in Los Angeles County was $2,045, down 0.7% from a year earlier but up 6.8% from December 2019, according to Apartment List.