You’ve probably heard people say Los Angeles home prices are dropping—but the data tells a different story. Prices are essentially flat year over year, with mild softening in certain pockets while well-priced, turnkey homes continue to hold their value.

Big Picture: Prices Are Flat, Not Falling

The Case-Shiller LA Index is up just 0.4% from last year—basically unchanged once inflation is considered.
Zillow shows LA home values down 2–3%, suggesting small dips in specific segments, not a citywide correction.

LA is not in a downturn. It’s in a paused, selective market.

**Where Prices Are Coming Down**

Softening shows up most in:

Overpriced or outdated listings
Homes that sit on the market
Higher-priced segments with more inventory

These properties often close 5–10% below peak values.

Where Prices Are Holding Strong

Turnkey, updated, and well-located homes—especially in NELA, Toluca Lake, Silver Lake, and good school districts—continue to attract strong demand and often sell near asking.

Looking Ahead to 2026

Most forecasts call for 3–4% annual appreciation, not price declines. If rates move into the low-6% range, expect sideways to slightly up pricing.

Bottom Line

Los Angeles is a flat, highly selective market, not a falling one.
Price drops are happening case by case, not across the entire city.