January 2026: Los Angeles Market Update

January 2026: Los Angeles Market Update

As we welcome the new year, we’re beginning 2026 with both gratitude for what’s behind us and thoughtful optimism for what’s ahead. Per the MLS, the median home price in Los Angeles shifted from $1,372,500 to $1,270,000 from November to December, a 7.5% decrease. This movement aligns with typical seasonal patterns, as residential real estate activity traditionally slows during the holiday period, with fewer homes entering contract at year-end.

At the same time, broader market conditions continue to evolve in constructive ways. Mortgage rates remain on a favorable trajectory. Per Freddie Mac, the 30-year fixed rate is now hovering around 6.16%, nearly a full percentage point lower than this time last year. Furthermore, The Realtor Association reports that inventory is about 20% higher than a year ago, creating more options for those looking to buy, and the association projects moderate home price growth of approximately 2–3% for 2026. Together, easing financing conditions and increased inventory suggest a market that is moving toward greater balance and, increasingly, a more buyer-friendly environment.

Beyond the data, this moment also calls attention to the resilience of our city. As we mark the anniversary of the devastating Los Angeles wildfires that impacted Pacific Palisades and Altadena, we are endlessly moved by the strength and spirit of these communities. Progress has been both visible and meaningful: in Altadena, several long-loved small businesses have reopened at Mariposa Junction after being displaced by the Eaton Fire, signaling important milestones in recovery and local commerce. In Pacific Palisades, Erewhon’s return as the anchor tenant at Caruso’s Palisades Village reflects renewed momentum as the neighborhood continues to rebuild. While there is still work ahead, these developments underscore the collective dedication to restore what was lost and strengthen what remains.

As we reflect on the year behind us, we are deeply grateful for the trust our community placed in us. In 2025, we had the honor of facilitating over $76 million in sales, a milestone made possible by the relationships we value and the confidence our clients place in our guidance. It remains our mission to help our community make the best real estate decisions for their future, grounded in unrivaled care, integrity, and local expertise.

Looking ahead, we’re excited to continue connecting with our community throughout the year, beginning with Playa Vista’s 25th Anniversary celebration this month. From all of us at Highland Premiere, we wish you a happy, healthy, and prosperous New Year and look forward to everything we’ll build together in 2026.