As the confetti clears from the Rose Parade, the Los Angeles real estate market is entering a pivotal new chapter. For three years, we’ve navigated a “frozen” market defined by high rates and record-low inventory. In 2026, the data indicates we are moving from a standstill to a steady climb.

The Analytical Breakdown:

• Rate Reality: With 30-year fixed rates currently at 6.42% (down from 2024 peaks), the “Lock-In” effect is finally thawing. We expect an 8.9% increase in active listings this year as move-up buyers find the math finally works.
• Price Forecast: While national headlines vary, LA County is holding firm. Median prices sit at $942,610, with a projected modest appreciation of 2.2% for 2026. This is “healthy” growth—avoiding the volatility of previous cycles.
• Inventory Recovery: For-sale inventory nationwide is recovering, but LA remains a high-demand, low-supply “island.” The current window offers the most choice we’ve seen in 24 months.

Notable Market Movement: 

The ultra-luxury sector is already active. The $110M sale of “The Manor” and the listing of Diane Keaton’s former Beverly Hills estate for $25M signal that the top 1% are positioning assets for the new year.

Neighborhood Spotlight: 

Keep a close eye on West Adams and Eagle Rock. These “bridge” neighborhoods are seeing increased buyer interest from those pivoting away from the higher density of the Westside.

Conclusion: 

If your goal is to transact in 2026, the first two weeks of January are for strategy, not just observation. 

Call me, for a 2026 “Neighborhood Pulse” report.

Melissa Menard REALTOR® | Compass
The Greater Los Angeles Area
📞 310.729.9726 | DRE# 01858710
📧 melissa@melissamenardhomes.com
🌐 www.MelissaMenardHomes.com