Key Market Takeaways
- Inventory: House inventory continues to tighten (down 9% YoY), while condo inventory remains completely flat YoY
- Sales: Condo sales spiked by 13% YoY (+8% MoM), whereas house sales dipped by 2% YoY
- Pricing: Los Angeles home prices remain relatively stable, with house median prices down 2% YoY and condo median prices up 1% YoY
DEEP DIVE: AUGUST 2026 MARKET ANALYSIS
So the big story of the month is that condo sales increased 13% YoY while house sales decreased YoY. However, despite the big increase in condo sales, prices are relatively flat. This indicates that the sales are being made by buyers taking advantage of a sluggish condo market.
For buyers, this could be a good opportunity to secure a condo while prices remain stable and before competition possibly heats up. For sellers, it is especially important to price competitively and ensure your property shows well, since increased sales volume has not yet translated into significant price gains.
Houses | Year-over-Year (YoY) | Month-over-Month (MoM) |
Houses for Sale | -9% | -1% |
New Listings | -6% | -4% |
Houses in Escrow | -5% | -7% |
Closed Sales | -2% | -2% |
Median Sale Price | -2% | -1% |
With house inventory continuing to be squeezed, this will likely create a safety net for Los Angeles home prices, since there is still demand for houses. For buyers, this means facing continued competition and possibly fewer choices, so being prepared to act quickly and make strong offers is important. For sellers, low inventory works in your favor by keeping demand high for well-priced, move-in-ready homes, but buyers are still price-sensitive, so presenting your property in its best light remains key.
Condos | Year-over-Year (YoY) | Month-over-Month (MoM) |
Condos for Sale | FLAT | FLAT |
New Listings | +3% | +2% |
Condos in Escrow | -2% | -3% |
Closed Sales | +13% | +8% |
Median Sale Price | +1% | -1% |
With condo sales increasing significantly YoY and MoM, this is hopefully a sign that the market is improving. However, if prices remain relatively flat even though sales are encouraging, it wouldn't be the full relief that condo sellers are looking for. For condo sellers, this is a good time to be strategic: consider pricing your property competitively to attract motivated buyers and ensure your condo is move-in-ready. Small upgrades or cosmetic improvements could help your unit stand out in a market where buyers have options. If getting your ideal price is your top priority and you are not in a hurry, waiting for more favorable market conditions is also worth considering.
Still a Random Market
So this isn't the news that sellers or potential sellers want to hear, but the market is still behaving quite randomly. Even though there is still a definite pull towards homes that are completely move-in ready, there are some that are still sitting, even if the price is okay. I don't cover Northeast LA very closely, but from what I've been hearing, that market is doing quite well. It tends to be most popular among first-time home buyers, and given that you get better bang for your buck than on the Westside, that market is more appealing right now.
Mortgage Rates
Unfortunately, mortgage rates have increased over the past month, mainly due to the conflict in the Middle East. At one point, mortgage rates were the highest they've been over the past 12 months. Even though they have improved slightly, they are still higher than they were 12 months ago. As has been the case for the past few months, the swing in mortgage rates is highly dependent on what the administration says each day. Until this conflict is completely resolved, it will continue.
Equity Rich
CNBC recently reported that homeowners tapped $47 billion in equity in the first quarter of this year. Most of that money came in the form of HELOCs or home equity loans, which allow homeowners to tap into their home's equity by taking out a second mortgage. Those interest rates can be rather high, around 7% or 8%, so these homeowners have to be very careful not to overindulge in their spending.
If you are a homeowner, tapping into your equity can fund home renovations, consolidate high-interest debt, fund education, or cover other major expenses. It might make sense to consider this option if you have a clear purpose and a solid repayment plan, along with a financial cushion to cover the higher rates. But it is wise to avoid using home equity for everyday spending, vacations, or purchases that do not build value in your asset.
This could also be a major indicator of why the economy is still doing so well and of the K-shaped economy. Even though prices for goods are very high, people can offset inflation by tapping into the equity they've built as their home's value has appreciated.
Palisades
Land prices in the Palisades continue their upward trajectory despite activity slowing down considerably. There were multiple sales north of $3 million last month, including two sales of $5 million and above. It's these high-priced sales that are pushing up the median sale price, whereas before many sales were below $3 million.
While transaction activity for new lot purchases has slowed, the rebuilding process for current owners is moving steadily forward. Pali Builds' latest June update highlights where things stand:
- 99 permits issued
- 111 new single-family applications submitted
- 2 Certificates of Occupancy issued
- 141-day average permit timeline
- 23-day fastest permit issued this month
You can read the full report here - https://palibuilds.com/pali-builds-permit-update-june-2026/
Click below to follow the Palisades land market in real time on the MLS. It’s an active link that will update with the current day's data. https://www.themls.com/MarketSnapshot/T/YWFhYWJmamR
FAQS
Is now a good time to buy a condo in Los Angeles?
Yes. With condo sales up 13% YoY while prices remain flat, buyers have a strategic window to purchase prior to potential increased competition.
Are single-family home prices dropping significantly in LA?
No. Although median house prices adjusted downward by 2% YoY, tight inventory levels continue to maintain a structural floor for Los Angeles home prices.
What is currently driving mortgage rate fluctuations?
Geopolitical conflicts and economic news. Mortgage rates have faced upward pressure primarily driven by geopolitical events and daily policy announcements.
