Alright, let’s talk real estate in Southern California. So, last month, home prices didn’t really shoot up like crazy. People just weren’t going all out to spend a ton on houses. Why? Well, there’s a bunch of reasons floating around. High mortgage rates, more houses being put up for sale, and all this economic uncertainty thanks to the whole tariff drama. In March, the average home price in Southern Cali barely budged, creeping up just 0.38% to $875,908. Over the year, prices only went up by 1.9%, the smallest jump in a while.
Now, according to Zillow’s Senior Economist Orphe Divounguy, the housing market isn’t all about sellers anymore. Owners are starting to list their homes more often, thinking those high mortgage rates are sticking around. They’re like, “You know what, it’s time to move on.” On the flip side, buyers aren’t exactly rushing back to the scene. Richard Green from USC’s Lusk Center for Real Estate points out that mortgage rates are still up there in the high-6% range. That’s a big jump from the pandemic days when rates were dirt cheap.
Job growth in L.A. County hasn’t been too hot either, which really puts a damper on the demand for homes. And let’s not forget about those trade wars. The whole tariff thing has folks feeling iffy about the economy. Some are holding off on buying until things clear up a bit. It’s like, “Let’s wait and see how this all plays out.”
And, you know, there’s talk of a recession looming on the horizon. People are freaking out after President Trump’s tariff announcement and the stock market went haywire. Zillow’s predicting a drop in home prices by 2026, thanks to all this uncertainty. If things really go south, prices could tank even more. It’s a bit nerve-wracking, to be honest.
Now, on to rental prices. Since the fires last January, things have been a bit all over the place. Vacancies were on the rise, forcing landlords to lower rents. But with all those homes lost in the fires, suddenly there’s a surge in demand for rentals. In areas like Pacific Palisades and Altadena, where the fires hit hard, rents are expected to shoot up, especially for larger units. Santa Monica saw a 3.2% rent increase in March, while across L.A., rents only went up by 0.38%.
It’s a wild ride out there in the real estate world. Prices are up, down, sideways — who knows where they’ll go next. Just gotta hang on tight and see what happens, right?
