Key Market Takeaways
Inventory: New listings continue to contract, with single-family home listings dropping -9% YoY and -3% MoM, while condo listings dropped -6% YoY.
Sales: Buyer activity surged with closed sales jumping +10% YoY and +8% MoM across both single-family homes and condos.
Pricing: The upward pressure on pricing cooled slightly as the median single-family home price dropped both YoY (-4%) and MoM (-1%) for the first time since March.
DEEP DIVE: JULY 2026 MARKET ANALYSIS
After consecutive months of rising prices for single-family homes, prices dropped slightly this month, while the condo market flattened. The market remains very hard to pin down, with outlier properties bucking trends and skewing the data.
Single-Family Home Market Data
Houses | Year-over-Year (YoY) | Month-over-Month (MoM) |
Houses for Sale | -8% | FLAT |
New Listings | -9% | -3% |
Houses in Escrow | -2% | -3% |
Closed Sales | +10% | +8% |
Median Sale Price | -4% | -1% |
For the first time since March, the median sale price was down both YoY and MoM.
Condo Market Data
Condos | Year-over-Year (YoY) | Month-over-Month (MoM) |
Condos for Sale | FLAT | FLAT |
New Listings | -6% | FLAT |
Condos in Escrow | -1% | -4% |
Closed Sales | +10% | +8% |
Median Sale Price | -2% | FLAT |
Increase in Sales
What was encouraging to see was the increase in closed sales for both houses and condos, especially given how sluggish the spring was. This could be a coincidence and quite possibly seasonal, but buyers these days are very savvy. They probably picked up on a lull in the market and decided to jump in while the timing was right.
Stock Market Influence on Home Buying
Recently, I discussed how the stock market could be contributing to rising house prices. I've had a couple of firsthand experiences with buyers who I've been working with over the past three or four years on and off. They couldn't buy a house because they kept getting outbid and the prices became unattainable. However, because they were investing in the stock market all this time, those buyers are now able to make offers close to 20% higher than they did years ago. Throughout my career, most of my buyers have liquidated stocks to help with the down payment, and given that the stock market has been on such a tear over the past few years, they can put more money down. Therefore, despite mortgage rates being as high as they are, monthly payments remain manageable.
The Agency's Mid-Year Report
The Agency has been producing an annual report for some years now, and this year is the first time they have released a mid-year report. You can read it here - https://theagencyredpaper.com/2026-mid-year-report/
FAQS
Are Los Angeles home prices finally dropping?
Not necessarily. Even though I am a numbers-and-data guy, I'm also realistic about how numbers can be portrayed. When you look at the median sale price for houses down both YoY and MoM, some might think this is an early sign of prices coming down (which is what all buyers are hoping for). However, when you look at June last year, it was the peak for the median sale price for the year. So if the activity continues this year, there’s a good chance prices will remain higher than last year. Having said that, the market has felt soft at times, so we will see.
Will mortgage rates decrease this year?
Unlikely. Given that the conflict in the Middle East has no real end in sight, mortgage rates are going to suffer, and inflation will likely remain elevated. That will completely eliminate any chance of a rate cut by the Fed this year and, more than likely, increase the chances of the Fed raising rates this year. Now, even though the Fed doesn't directly control mortgage rates, its adjustments to the Fed funds rate still have a significant impact on investors in the bond market. My biggest hope here is that, as for most of this year, mortgage rates have been much more resilient than the bond market, so let's hope that continues. The wild card is that there's a new Fed chair, Kevin Warsh, who is making his way through the Fed, looking to shake it up. Given that, it could be even harder to predict what rates will do for the remainder of the year.
Will the new housing bill help California home buyers?
No immediate relief. The landmark 21st Century ROAD to Housing Act was enacted over the weekend. While it’s a historic bipartisan push to cut red tape, fund pre-approved housing designs, and incentivize commercial-to-residential conversions, it offers no immediate relief for California buyers. This is a long-term supply-side play; it won't lower mortgage rates or increase inventory in the near term.
How is the aftermath of the Palisades fire impacting land listings?
With a gradual decline. There has been a gradual decline in both new land listings and closed sales. There had been a theory that lots hitting the market would occur in various waves, and this gradual decline could indicate that we are currently in a lull between those waves as owners continue to sort out their insurance and leases. In encouraging news, I heard this week that roughly 30% to 40% of the lots in the Alphabet Streets are either under construction or nearly complete. Also, Palisades Village has been officially announced to reopen on August 15, with some of the existing stores returning.
Additionally, if you've been considering an ADU, keep an eye on SB 1077 — the state gave the Coastal Commission until July 1 to finalize new guidance for streamlining ADU permitting in coastal zones. That guidance was officially published on July 1, and the ball is now in local governments' court to update their permitting rules accordingly.
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.
