House prices in Southern California fell in June, marking a second straight month of value decline from a year ago.
In June, average house prices in six Southern California counties fell 0.2% from May to $875,128, according to Zillow. Prices fell by 0.9% compared to June 2024.
Economists and real estate agents say all factors slowed the market, including high mortgage rates, rising inventory levels and economic uncertainty arising from tariffs.
Prices fell similarly in May. Prior to that, prices have not fallen annually since July 2023.
At that time, house prices fell as rising mortgage rates drove many buyers out of the market. When sellers also retreated, the number of homes sold fell, unwilling to give up on the mortgage they took out during the pandemic, and the price of the mortgage sold was reduced by 3% or less, the value began to increase again.
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In June, Los Angeles County had a 35% more home sale, with a similar increase elsewhere in Southern California.
Real estate agents say current homeowners are increasingly looking to move instead of sticking to their ultra-low mortgage rates. However, many first-time home buyers, who are not entitled to gain rights and are still locked up.
Add to that economic uncertainty and you will get a market that is significantly downshifted.
If the Trump administration’s policies ultimately plunge the economy into recession, some economists say house prices may fall further.
Housing prices in cities and nearby
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Welcome to the Los Angeles Times real estate tracker. We publish a report every month with data on house prices, mortgage rates and rental prices. Our reporters will explain what the new data means for Los Angeles and surrounding areas and help you understand what you expect to pay for an apartment or home. You can read about the property failure last month here.
Explore house prices and rents in June
Use the tables below to search for home sales prices and apartment rentals divided by city, neighborhood and county.
Rent prices in Southern California
In 2024, rents also ticked down when inquiries to many areas of Southern California, but January fires in Los Angeles County could raise the downward trend in some places.
Housing analysts say the rise in vacancy levels since 2022 has forced landlords to accept less rent. But the fire destroyed thousands of homes and suddenly evicted many people to the rental market.
Most of the destroyed homes are single-family homes, with some housing and disaster exploration experts saying they expect the largest rent to increase, with larger units adjacent to the burning areas of Pacific Palisade and Altadna, and the upward pressure on rents reduced units that are smaller and far from disaster areas.
A recent Los Angeles Times analysis of Zillow data found that rents rose more than other areas from December to April in the zip code closest to the fire.
Other data sources show similar trends.
Median rents rose 4.1% from the same period last year, according to the apartment list.
All of Los Angeles, including Palisades and many neighborhoods adjacent to any fire, rents fell by 0.85% last month.
The apartment list does not have data for Altadena, but it applies to the neighboring city of Pasadena. Rents rose 5.4% in June from a year ago.
