Westside Market report | MAY 2026

**The market report reflects the housing statistics from the previous month.

PRICING

The average home value in Los Angeles is currently around $956,500, down approximately 1.2% year-over-year, though median sale prices have remained relatively stable near the $980,000 range. Most forecasts continue to call for modest appreciation of 1–3% through the remainder of 2026, with performance varying significantly by neighborhood, price point, and property type. Well-located homes in desirable school districts and lifestyle-driven neighborhoods continue to outperform the broader market.

Market Conditions

The Los Angeles housing market in May 2026 continues to move toward a more balanced environment. Buyer demand remains active, but affordability concerns and economic uncertainty have created a more selective pool of purchasers. Homes that are priced appropriately, professionally marketed, and move-in ready are still attracting strong interest and occasional multiple-offer situations. However, listings that enter the market above perceived value are experiencing longer marketing times and more frequent price reductions. The market remains active, but buyers are showing less urgency than in previous years.

Inventory

Inventory continued to expand throughout May, giving buyers more options than they had a year ago. Active listings in Los Angeles have increased as more homeowners accept that mortgage rates are likely to remain elevated for longer. Despite the increase in supply, inventory remains below historical norms due to ongoing zoning constraints, high construction costs, labor shortages, and the continued "lock-in effect" of owners holding ultra-low mortgage rates from prior years. The result is a market that is less competitive than 2021–2022 but still fundamentally undersupplied relative to long-term demand.

Interest Rates

Mortgage rates remained relatively stable throughout May, with most 30-year fixed-rate loans ranging between 6.3% and 6.6%. While rates are lower than recent peaks, they remain well above the levels many buyers became accustomed to during the early 2020s. Affordability continues to be the primary challenge facing the market, and buyers are carefully evaluating monthly payment obligations alongside broader economic factors such as inflation, employment trends, and financial market volatility. Most forecasts suggest rates will remain elevated through the remainder of 2026, with only gradual improvement expected.

Buyers vs. Sellers

Los Angeles remains a collection of micro-markets rather than a single market. In many neighborhoods, sellers still hold an advantage when properties are priced correctly and presented effectively. However, buyers have gained more negotiating power than they had over the past several years due to rising inventory and a slower pace of sales. For sellers, success depends increasingly on pricing strategy, presentation, and marketing execution. For buyers, improved inventory levels are creating more opportunities to negotiate and compare options, though desirable properties continue to sell quickly when priced appropriately. Overall, May 2026 represents one of the most balanced Los Angeles housing markets seen in recent years.