Southern California Home Prices Take Biggest Dip Since 2023

Are Southern California home prices finally beginning to crumble?

According to data from real estate tracker Attom, February’s $800,000 median sales price for the six-county region was down 2% compared with a year earlier. Attom tracks sales of houses and condos, both existing homes and newly constructed.

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My trusty spreadsheet’s review of these statistics found that February’s price decline was the largest since May 2023.

Remember, February was before all the economic anxieties created by the Iranian conflict. Still, the business climate has been wobbly for many months, particularly as slow local hiring has weakened consumer confidence.

Despite the turbulence in the business climate, the upswing in local home prices continued through 2025. Before the 1% year-over-year dip in January 2026, prices hadn’t fallen for 31 months.

Yes, this price decrease is only a modest reversal. Even with the recent drops, the Southern California median price is a mere 4% below its June 2025 peak of $830,500.

Beege Welborn

I'm not quite sure I'd be using the adjectives he uses to describe this dip in home prices, but when your values are in the stratosphere already, even a two-digit drop can mean a lot of money. If this keeps declining?

 Ho, boy. That will be gruesome.

And what a mess for the incoming governor.

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