Los Angeles homes market shows signs of cooling amid declining prices, increased inventory, and falling home sales
The Los Angeles median home sale price was $900,000 in February and decreased by 2.2% compared to a year earlier. This marked a notable shift for the market, as February recorded one of the few annual price declines over the past decade and represented a clear underperformance relative to national pricing trends, which grew by 0.2%. Furthermore, inventory increased while home sales decreased annually, shifting the market slightly towards the buyer.
Sale prices weaken across property types
Los Angeles sale prices softened broadly in February, ending a two-year run of annual price growth. The market recorded the steepest price decline among Southern California metros and lagged the United States, where prices edged higher year over year. Condos experienced the sharpest correction, posting one of their largest annual declines on record, though detached and attached homes also contributed to the overall price weakness.
Inventory growth remains modest despite recent gains
Los Angeles inventory increased to 16,756 active listings in February, reflecting modest year-over-year growth and a third consecutive monthly increase since December, which had the lowest number of listings in a twelve-month period. While Los Angeles ranked among the top 10 nationally for total listings and led all California markets in inventory, its annual growth trailed the national pace. Detached home listings were the only property type to decline year over year, while other categories continued to expand.
Home sales fall more than state and national averages
Los Angeles home sales totaled 3,126 in February and declined 7.7% from a year earlier, representing the largest sales drop among California’s major housing markets. The decrease exceeded the national decline, although Los Angeles still ranked eighth among the top 40 markets for total sales volume. Sales fell across all property types at similar rates, indicating broad-based softness in buyer activity rather than weakness concentrated in a single segment.
Los Angeles Sale Prices
The median home sale price in Los Angeles fell by 2.2% in February compared to the same month last year, while national prices rose a marginal 0.2%. The median home price is $900,000.
Los Angeles home sale prices in February are falling year over year for the first time since 2023
Los Angeles home sale prices fell in February, breaking a two-year streak of rising annual home prices. Sale prices declined by $20,000 compared to February 2025. This February marked the second time in the past decade where home sale prices did not increase annually in February.
Los Angeles underperforms against all Southern California markets in February
Los Angeles’s price decrease of 2.2% was the steepest of all Southern California markets in February. Though all three experienced a decline, San Diego had the smallest drop at 0.5% and Inland Empire at 1.9%. The only California city to post positive price appreciation was San Francisco, at 5.3%.
Los Angeles condos experience one of their steepest pricing drops on record in February
Los Angeles condo pricing fell by 7.3% compared to February 2025. Condos have now experienced nine consecutive months of annual price declines.
Los Angeles Inventory
Los Angeles had 16,756 active listings in February, up 5.2% year over year and marking three straight months of growth since the 12-month low in December, which was 14,714. The city's increase in listings was much smaller compared to the national increase of 14.2%.
Los Angeles has the ninth-most active listings nationally
Active listings in Los Angeles increased 5.2% year over year, the 25th smallest gain among the top 40 markets, yet it ranks ninth for total listings. Houston leads all major markets with 39,133 active listings.
Los Angeles has the most active listings of any California market
Los Angeles led all California markets with the highest number of active listings with16,756. The Inland Empire followed closely with 14,783 listings. Conversely, San Jose and San Francisco have the fewest active listings, not just in California, but nationwide, at 2,493 and 1,964, respectively.
Los Angeles active listings for detached homes fall year over year
Los Angeles active listings for detached housing fell 0.4%, the only property type to experience a decline year over year. All other property types had more listings in February 2026 compared to February 2025.
Los Angeles Home Sales
Los Angeles recorded a 7.7% decline in home sales in February compared to the same month last year.
Los Angeles home sales fall year over year
In February, Los Angeles recorded 3,126 home sales, representing a 7.7% decline compared to the same period last year—a reduction of 259 transactions. This figure is below the national average, as U.S. home sales decreased by 3.7% year over year, placing Los Angeles 26th among the top 40 housing markets for year-over-year change. Despite this, Los Angeles ranked eighth in total sales volume among these leading markets.
Los Angeles performs worse than its California peers
Los Angeles experienced the largest decline in home sales across the state, with a 7.7% decrease. Meanwhile, Sacramento’s home sales decreased by 4.4%, Inland Empire’s decreased 3.9%, and San Diego’s home sales decreased1.2%. Among California’s major housing markets, only the Bay Area’s San Jose, with an 8.7% increase and San Francisco, with a 10.1% increase saw an uptick in home sales this February.
Sales of all three property types declined almost equally in February
In February, no single property type experienced a notably worse performance than the others. Detached homes saw the largest year-over-year drop at 7.9%, totaling 2,289 sales. Condo sales decreased by 7.1%, with 540 units sold during the month. Attached homes performed slightly better, with only a 6.9% decline compared to last February, resulting in 297 sales.
For questions and commentary about this report:
Catherine Yeh, Director of Market Analytics at CoStar and Homes.com, based in Los Angeles, is available for interviews to provide expert insights on this data and the broader residential real estate market.
Catherine Yeh
Director of Market Analytics
Homes.com
cyeh@costar.com
Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all transactions are accounted for, they provide an early indication of home price appreciation, inventory changes, and sales volume in Los Angeles during February 2026.
For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.
Definition of Sale Prices
Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
Definition of Inventory
Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
Definition of Home Sales
The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
About the Homes.com Market Analytics Team
The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.
About Homes.com Analytics Data
The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.
The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.