Los Angeles Real Estate Market Update – Sept 2026

The Los Angeles residential real estate market entered the fall with a familiar theme: home prices remain relatively resilient, but buyers have become more cautious and selective as mortgage rates moved back above 7%.

September data for the City of Los Angeles now gives us a clearer picture of the market. Prices have not fallen dramatically, but homes are taking longer to sell, sellers are adjusting expectations, and buyers generally have more negotiating room than they did during the much more competitive markets of recent years.

Home Prices Remain Surprisingly Resilient

In the City of Los Angeles, the median sold price in September was approximately $1.029 million, essentially unchanged from August and 0.4% higher than September 2025. The median asking price was approximately $1.125 million, down 4.35% from a year earlier.

The typical home spent about 60 days on the market, while the median price per square foot was approximately $736, down 2.7% year-over-year. Active inventory stood at approximately 11,948 listings, essentially unchanged from both August and a year ago.

Those numbers tell an interesting story: sale prices are holding relatively steady, but buyers are becoming more price-conscious and sellers are adjusting their asking prices accordingly.

At the county level, the most recent California Association of REALTORS® figures are still for August. The median price of an existing single-family home in Los Angeles County was $946,950, up 1.7% from a year earlier and 6.6% from July. Sales were also 2.1% higher than August 2025, although they declined 13.4% from July as the summer selling season slowed.

Condos Are Facing More Price Sensitivity

The condominium market continues to behave somewhat differently from single-family homes.

Across Los Angeles, there are currently roughly 2,270 condos for sale with a median asking price around $649,000. Condos currently on the market are taking approximately 84 days to sell, considerably longer than the roughly 60-day median for the overall Los Angeles residential market.

Part of the reason is affordability. Condo buyers have to factor in not only higher mortgage payments but also HOA dues, insurance costs and potential assessments, all of which can add considerably to the monthly cost of ownership.

As a result, buyers are becoming increasingly selective. Well-priced and updated condos in desirable neighborhoods continue to attract interest, but units that are overpriced — particularly those with high HOA fees or upcoming assessments — can sit considerably longer.

Buyers Have More Negotiating Power

Perhaps the biggest shift we're seeing isn't a dramatic decline in property values. It's a shift in negotiating power.

Nationally, 20.8% of active listings had a price reduction in September, the highest percentage for any month since October 2022.

Los Angeles is not experiencing a major increase in housing supply — September active inventory in the city was only 0.3% higher than a year ago — so there still isn't the type of oversupply that would normally cause prices to fall sharply.

But buyers are generally less willing to chase properties, overlook defects or accept aggressive pricing.

The result is a more balanced and increasingly price-sensitive market:

A desirable home priced correctly can still generate strong interest, while an overpriced property may sit on the market and eventually require a price reduction.

Mortgage Rates Remain the Biggest Headwind

Mortgage rates continue to have an enormous influence on the Los Angeles market.

The average 30-year fixed mortgage reached 7.03% on September 24, compared with 6.30% a year earlier.

At Los Angeles home prices, even a relatively small change in mortgage rates can translate into hundreds of dollars per month in additional payments. That has caused some buyers to lower their price range, negotiate more aggressively or simply postpone purchasing.

What Could Happen This Fall?

October through December is traditionally a slower period for Los Angeles real estate, and today's higher mortgage rates could amplify that seasonal slowdown.

Over the next several months, we are likely to see fewer transactions, longer marketing times and more price reductions, particularly among properties that entered the market with overly optimistic asking prices.

However, Los Angeles continues to have relatively limited housing inventory. That shortage should provide some support for home values and makes a significant across-the-board decline in prices less likely unless economic conditions deteriorate substantially.

For buyers, the fall and early winter could create opportunities. Properties that have been sitting on the market for 45, 60 or 90 days may have sellers who are increasingly willing to negotiate — particularly those hoping to complete a sale before year-end.

For sellers, pricing correctly from the beginning is becoming increasingly important. Today's buyers have more information, more choices and less willingness to overpay.

The Bottom Line

The Los Angeles housing market is not experiencing a dramatic downturn. Instead, it appears to be transitioning into a slower, more selective and more negotiable market.

September's numbers illustrate that transition well: median sale prices remain relatively stable, but asking prices are lower, properties are taking longer to sell, and buyers have become much more sensitive to both price and monthly carrying costs.

For sellers, preparation and realistic pricing will be increasingly important.

For buyers, the coming months may offer something that has often been difficult to find in Los Angeles real estate: a little more time to make a decision — and a little more room to negotiate.