Housing Tracker: Home prices in Southern California fell slightly in January

Home prices in Southern California fell slightly in January. It is the third month in a row that prices have fallen, and the eighth time in the past nine months.

The median home price fell to $855,335 in January, according to data from Zillow. Prices fell by 0.01% month-on-month and 0.9% year-on-year.

It is the lowest home value in Southern California since March 2024.

The dip reflects a sluggish winter market with tepid sales and low inventories. But economists and real estate agents say a variety of factors have contributed to the broader decline over the past year, including high mortgage rates, rising inventories and economic uncertainty caused by tariffs.

Until the recent declines, the last time prices fell on a year-over-year basis was July 2023. At the time, rising mortgage rates were pushing many buyers out of the market. Values ​​began to rise again as the number of homes for sale dropped as sellers retreated, unwilling to give up the mortgages they had taken out earlier in the pandemic at rates of 3% or lower.

Real estate agents say homeowners are increasingly looking to take the next step in their lives and are deciding to move rather than stick with their ultra-low mortgage rates. But many starters, who do not have access to equity, remain excluded.

Add to that the economic uncertainty and you get a market that has noticeably shifted back.

If the Trump administration’s policies ultimately push the economy into recession, some economists believe home prices could fall much further.