Market Update Los Angeles

downtown-los-angeles-skyline-view-los-angeles-c-2026-03-24-15-22-17-utc

The Big Story

Quick Take:

Median home sale prices bounced back in a big way in April, as the spring selling season kicked into gear with nearly a 1% year-over-year increase.
Inventory levels continue to climb, with new listings pouring onto the market as sellers look to capitalize on the busier spring months.
Existing home sales are essentially flat on a year-over-year basis, as rising mortgage rates give buyers a reason to pause.

Note: You can find the charts & graphs for the Big Story at the end of the following section.

*National Association of REALTORS® data is released two months behind, so we estimate the most recent month’s data when possible and appropriate.

Spring has sprung, and so have median sale prices

After several months of relatively flat price action, median home sale prices picked up some serious momentum in April. The median home sold for $417,700 in April, representing a 2.10% month-over-month increase and a 0.89% year-over-year gain. This bounce is especially notable when you consider that the median sale price had been on a downward trend from June of last year all the way through January, when it bottomed out at $395,000. Since then, we've seen three consecutive months of month-over-month increases, which tells us that the spring selling season is bringing some renewed energy to the market. However, it's worth noting that mortgage rates have ticked back up in recent weeks, with the average 30-year rate climbing to 6.46% in April, up from the 6.00% low we saw in March. This uptick in rates pushed the median monthly P&I payment up to $2,115, though this is still 3.07% lower than the $2,182 the median homeowner was paying at this time last year. If rates continue to climb, it could put a ceiling on how much further prices can rise in the near term.

New listings are flooding the market as sellers get off the sidelines

As the spring selling season heats up, we're seeing a significant wave of new listings hit the market. In April, there were 477,116 new listings nationwide, representing an 8.70% month-over-month increase and a 1.13% year-over-year increase. This influx of new listings is great news for buyers who have been dealing with limited options for the better part of the past few years. On the inventory side, there are now 1,470,000 homes available for sale, representing a 5.76% month-over-month increase and a 1.38% year-over-year increase. Inventory has been steadily building since its December low of 1,230,000, and we're now approaching the levels we were seeing during the peak of inventory season last summer. If this trend continues through May and June, buyers could find themselves with the most options they've had in quite some time, which would be a welcome shift in a market that has been starved for supply.

Existing home sales are holding steady, but buyers remain cautious

Despite the influx of new inventory and three consecutive months of rising prices, existing home sales have remained relatively flat. In April, 4,020,000 homes changed hands, representing just a 0.50% year-over-year increase and a 0.25% month-over-month uptick. While it's encouraging that sales are at least trending in the right direction, the pace of improvement has been glacial, which suggests that many buyers are still sitting on the sidelines. Part of the story here is the recent uptick in mortgage rates. After falling steadily from 6.85% last June to 6.00% in March, rates have bounced back to 6.46%, which may have given some prospective buyers cold feet. If rates stabilize or begin to decline again, we could see existing home sales pick up in a meaningful way as we move into the summer months. For now, though, it seems like buyers are content to wait and watch.

A balancing act heading into the summer

When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.

At the national level, we're seeing the market inch closer to a more balanced state. Inventory continues to build heading into the summer, while existing home sales have been essentially flat, meaning that the available supply is lasting a bit longer than it did at this time last year. However, the recent reversal in mortgage rates adds a layer of uncertainty to the equation. If rates continue to rise, we could see demand soften further, which would push the market toward buyers. On the other hand, if rates settle back down and buyers start to re-engage, the growing inventory could get absorbed quickly, keeping the market tilted in favor of sellers. As always, real estate is a highly localized asset, which is why you should check out what's going on in your local market below in the Local Lowdown!

Big Story Data

Local Lowdown

Quick Take:

Median sale prices are showing a clear divergence across Southern California, with San Diego and Orange County posting solid year-over-year gains while Los Angeles and Riverside continue to see modest declines.
Inventory levels have largely normalized across the region, with year-over-year gaps narrowing considerably compared to earlier in the cycle, and San Diego now sitting essentially flat compared to last year.
Listings are moving at a rapid pace across most of the region, with San Diego, Orange County, and Los Angeles all seeing median days on market at or below last year's levels.
Market conditions have shifted in favor of sellers in the coastal markets, with San Diego and Orange County both posting 2.8 months of supply, while Los Angeles has returned to balanced territory.

Note: You can find the charts/graphs for the Local Lowdown at the end of this section.

San Diego and Orange County Lead the Way on Price Appreciation

Southern California's housing markets are telling two very different stories when it comes to pricing as we head into the spring selling season. San Diego continues to be the standout performer, with the median single-family home selling for $1,050,000 in April, representing a solid 3.45% year-over-year increase. This marks the sixth consecutive month of year-over-year gains for San Diego and reinforces its position as one of the most resilient markets in the state.

Orange County has also bounced back nicely, with the median sale price climbing to $1,467,500 in March, a 1.21% year-over-year increase that erases the softness we saw in January and February. However, Los Angeles and Riverside are still working through a period of price weakness. Los Angeles has now posted five consecutive months of year-over-year declines, with the median sale price coming in at $842,660, down 0.90% from last year. Riverside rounded out the picture with a 2.17% year-over-year decline, bringing its median sale price to $631,000.

Inventory Levels Have Largely Normalized Across the Region

For the better part of the last two years, Southern California has been dealing with elevated inventory levels compared to the prior year. That trend appears to have largely run its course. San Diego has led the way on this front, with inventory levels now essentially flat on a year-over-year basis, as April's 5,001 active listings represent just a 0.06% decrease compared to last year. This is a significant development after the dramatic swings we saw throughout 2025, when year-over-year inventory increases were routinely in the double digits.

The other three markets are seeing similar normalization, though the gaps haven't closed quite as dramatically. Riverside has 7,610 active listings, up just 3.51% year-over-year, while Orange County sits at 3,991 listings, a 3.85% increase. Los Angeles still has the widest gap at 7.69%, with 13,499 active listings, but even that figure has been narrowing over the past few months. This overall normalization suggests that supply and demand are finding their equilibrium across the region.

Listings Are Flying Off the Market as Spring Heats Up

The spring buying season is in full swing across Southern California, and listings are moving at a healthy clip in most markets. Orange County saw the most dramatic improvement, with the median listing spending just 21 days on the market in March, perfectly flat on a year-over-year basis and down 12.50% from February. San Diego isn't far behind, with listings sitting for just 18 days, up only 5.88% on a year-over-year basis.

Los Angeles posted perhaps the most encouraging data point, with the median listing spending 23 days on the market, representing a 4.17% year-over-year improvement and a dramatic turnaround from the 38 days we saw in January. Riverside remains the outlier, with listings sitting for 42 days, up 8.70% on a year-over-year basis. The fact that listings are moving this quickly in the coastal markets even as inventory continues to build is a strong indicator that buyer demand remains robust heading into the summer months.

Coastal Markets Have Swung Back to Seller's Territory

When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.

The spring uptick in buyer demand has pushed the coastal markets back into seller's territory. San Diego and Orange County both ended March with just 2.8 months of supply, placing them firmly in seller's market territory. For San Diego, this represents a 12.50% decline on both a month-over-month and year-over-year basis, while Orange County saw a 20.00% month-over-month decline. Los Angeles has also made significant progress, moving from 4.5 months of supply in January down to 3.5 months in March, placing it in balanced territory with a slight lean toward buyers. Riverside remains the only market firmly in buyer's territory at 3.7 months of supply. With the traditionally busy summer months just around the corner, sellers in San Diego and Orange County appear to be in a strong position, while buyers in Riverside and Los Angeles still have meaningful leverage in negotiations.