Author: dailycastsocal

Home prices in Southern California saw a slight increase in February, marking the first rise in seven months. According to Zillow, the average price of homes in the six-county area rose by 0.3% from January to $874,382 in February. Since August, home prices had been on a downward trend, which economists believe reflects overextended consumers and seasonal influences. Challenges such as elevated home values and high mortgage rates have hindered potential buyers from pushing prices higher, combined with a natural market slowdown during fall and winter months. However, the declines were minimal; January’s prices were only 1.6% lower than the record high attained last summer. The modest rise in February, which came alongside a slight drop in mortgage rates, could indicate that values may rise during the typically active spring selling season. Nevertheless, Orphe Divounguy, a senior economist at Zillow, remains cautious about significant changes. He noted that mortgage rates are expected to remain stable around the mid-6% range, preventing potential home buyers from significantly increasing their offers on houses or condos. Additionally, the number of existing homeowners opting to sell is also likely to help maintain price stability. Zillow reports a 32% increase in the number of homes available for sale in L.A. County compared to February 2024. Experts link this rise to existing homeowners who are increasingly looking to relocate rather than keep low-rate mortgages they secured during the pandemic. By February 2026, Zillow anticipates that home prices in Los Angeles and Orange counties will have experienced only a modest increase of 0.1% from last month. Housing prices by city and neighborhood Note to readers Welcome to the Los Angeles Times’ Real Estate Tracker. Each month, we will release a report that includes data on housing prices, mortgage rates, and rental prices. Our journalists will provide insights into what these new figures imply for Los Angeles and surrounding regions, aiding you in understanding rental or purchase costs for apartments or homes. You can access last month’s real estate analysis here. Explore home prices and rents for February Utilize the tables below to look for home sale prices and apartment rental prices by city, neighborhood, and county. Rental prices in Southern California Over the past year, rental prices for apartments in various areas of Southern California have decreased, but the recent fires in L.A. County could disrupt this downward trend. Experts have indicated that rising vacancy rates have compelled landlords to lower rents, but the fires destroyed thousands of homes, suddenly putting many individuals in search of rentals. As these individuals seek housing, numerous reports of illegal price gouging have surfaced, with some landlords raising rents by over 50%. Authorities have initiated several criminal and civil cases against landlords and real estate agents, leaving it uncertain how competitive the overall market will become in the forthcoming months and year. The majority of the destroyed homes were single-family residences, and experts suggest that the most significant rent increases will likely occur in larger units near the burned areas in Pacific Palisades and Altadena, with upward pressure on prices easing as units become smaller and further from the disaster zones. The rent data from January and February offers a preliminary glimpse into the potential changes ahead. In Santa Monica, which borders the Pacific Palisades neighborhood in L.A., median rent saw an increase of 1.12% from January and 3.06% from December, reaching $2,527 last month, based on ApartmentList’s data. Rob Warnock, an analyst at ApartmentList, reported that this growth rate surpasses that of previous years, a trend also observed near the Eaton fire in Glendale and Pasadena, though to a lesser extent. Across the entire city of Los Angeles, which encompasses the Palisades and many neighborhoods not affected by the fires, the rent growth has been comparatively less than in prior years. The median apartment rent in February increased by 0.73% from January, and rents remained stable between December and January. Warnock noted that the data does not account for single-family homes, and that rental prices in L.A. areas close to the fire may be rising faster than usual, but ApartmentList lacks the capability to monitor that. Source link