February 2026 Market Update 

A Slow but Steady Comeback for Californian Real Estate.

California’s housing market showed a bit more life in February, with both home sales and prices ticking upward as mortgage rates eased earlier in the month. After a relatively quiet start to the year, this was a welcome shift. Existing single-family home sales rose 7% compared to January, suggesting that buyers who had been waiting on the sidelines may have started to re-enter the market. That said, when compared to February of last year, sales were still down slightly by 0.3%, which is a reminder that while things are improving, the market isn’t exactly sprinting—it’s more of a steady jog back to normal. .

“Following a soft start to the year, the housing market regained momentum in February, with both sales and prices showing solid gains...The conflict in the Middle East is creating some uncertainty for the broader economy and financial markets, which could lead to some short-term hesitation in the housing market. Were main hopeful though that the situation will stabilize in the weeks ahead, allowing market fundamental sand buyer and seller confidence to reassert themselves.”-C.A.R. President Tamara Suminski, a Southern California broker and REALTOR® .

On the pricing side, the statewide median home price reached $830,370 in February. That’s a 0.9% increase from January and just slightly higher than where we were this time last year. In other words, prices are holding firm. This continued price stability is largely due to one ongoing factor: limited inventory. Many homeowners are still holding onto historically low mortgage rates, making them less inclined to sell and trade into a higher rate environment. As a result, the number of homes on the market remains tight, which continues to support prices even as affordability challenges persist.

Looking at the bigger picture, however, the market is still operating below what we would consider “normal” levels. Sales have now remained below the 300,000 seasonally adjusted annual pace for 41 consecutive months. That’s a long stretch, and it highlights just how much higher borrowing costs and affordability constraints have weighed on activity over the past few years. Even with February’s bump, year-to-date sales are still down 0.7%, reinforcing that this recovery is gradual rather than immediate.

That said, there are a few encouraging signs worth noting. Pending sales have shown a stronger-than-usual increase, which typically signals that more closed transactions could be on the way. If that trend holds, we may see a more active spring market than initially expected. Of course, as with most things in real estate right now, there’s a “but.” Mortgage rates, while still lower than they were a year ago, have recently climbed to their highest level in several months. And as we all know, even small changes in rates can have a noticeable impact on buyer affordability and confidence.

Beyond interest rates, broader economic factors are also in play. Global events and financial market uncertainty can influence consumer confidence, and when buyers feel uncertain, they tend to pause before making large financial decisions like purchasing a home. Still, the underlying fundamentals of the housing market remain intact. Demand hasn’t disappeared—it’s just become more selective. Buyers are more cautious, more informed, and more deliberate, but they’re still out there.

At the same time, sellers are navigating their own set of considerations. With many locked into ultra-low mortgage rates, the decision to sell isn’t as straightforward as it once was. This “lock-in effect” continues to limit inventory, which in turn helps maintain price stability. It’s a bit of a balancing act: limited supply is supporting prices, while higher borrowing costs are keeping demand somewhat in check.

So where does that leave us? February’s data suggests that the market is gradually regaining its footing. It’s not a dramatic turnaround, but it is a step in the right direction. As we move further into the spring homebuying season, activity may pick up, especially if mortgage rates stabilize. However, conditions are likely to remain a mix of opportunity and caution, with both buyers and sellers taking a more thoughtful approach.

“While mortgage rates remain below year-ago levels, they recently jumped to their highest level in seven months and could temper buyer momentum as we head into the spring homebuying season...However, many homeowners remain locked in to historically low rates, and inventory remains tight, so any stabilization in rates could help bolster home prices in the spring market despite ongoing affordability and economic challenges.”-C.A.R. Senior Vice President and Chief Economist Jordan Levine. 

In short, the market isn’t overheating, and it’s not cooling off completely either—it’s finding its balance. Andin a market like this, strategy, timing, and good guidance matter more than ever..

And now for the latest data on Los Angeles County real estate trends:

Single family homes  |  Los Angeles County | February 2026

New Listings: 3.652 (Down 16.60% year over year)

Homes Sold: 2.150 (Down 7.21% year over year)

Median List Price: $999,000 (Down .05% year over year)

Median Sales Price: $1,007,500 (Down 2.09% year over year)

Median Days on Market:  24 (Up 14.29% year over year)

Average List Price: $1,475,304 (Down 6.62% year over year)

Average Sales Price: $1,452,537 (Down 7.78% year over year)

Average Days on Market: 46 (Up 9.52% year over year)

List/Sell Price Ratio: 100% (Down .91% year over year)

Condo homes  | Los Angeles County | February 2026

New Listings: 1,716 (Down 3.49% year over year)

Homes Sold: 828 (Down 7.8% year over year)

Median List Price: $699,000 (Down 3.59% year over year)

Median Sales Price: $690,000 (Down 4.17% year over year)

Median Days on Market: 43 (Up 38.71% year over year)

Average List Price:  $863,152 (Down 11.77% year over year)

Average Sales Price: $849,448 (Down 11.22% year over year)

Average Days on Market: 60 (Up 15.38% year over year)

List/Sell Price Ratio: 98.6% (Down .92% year over year)