FEBRUARY NEWSLETTER
Dear Friends, Family, and Colleagues,
After closing out 2025 on a strong note, California’s housing market has started the new year on a softer footing, with both sales and prices coming in below last year’s levels. However, as mortgage rates ease toward 3 year lows and housing supply is expected to improve in the coming weeks, we anticipate momentum to build as the market heads into the spring homebuying season.
📈 California Sales Rebound Slightly
Existing, single-family home sales totaled 256,550 in January, down 10.8% from 287,570 in December and down 1.3% from 260,040 in January 2025.
January’s statewide median home price was $823,180, down 3.2% from $850,680 in December and down from $839,130 in January 2025.
📉 Los Angeles County Trends
Los Angeles County Sales were down about 8.5% year over year and down almost 34.7% month over month.
The median home price in Los Angeles County was $879,720, down 0.8% year-over-year and down 1.3% month over month.
🔄 Outlook
January kicked off with a surge of activity in the local market, and February is showing no major signs of a slow down, as buyer interest and listings continue to rise. Here in our area, we’re feeling a real sense of momentum. Buyer sentiment is definitely higher than it was before, and we’re seeing sellers lower their expectations from years prior. That said, across the rest of the state, we’re seeing a bit of a different picture, with some regions cooling off. Mortgage rates are hovering around 6%, marking the lowest average we’ve seen in about two years—making now a great time to explore your options if you’ve been considering a move.
Sincerely,
Dennis Adelpour and The Adelpour Group
🏡 Key 2026 Real Estate & Housing Law Updates in California
🚭 Third-Hand Smoke Disclosure (AB 455)
• Sellers now must disclose known tobacco or nicotine residue or a smoking history in the property’s Transfer Disclosure Statement
📸 New Listing Photo Disclosure Rule (AB 723)
• Agents must clearly disclose when listing photos are digitally altered or AI-generated and provide access (e.g., a QR code) to the original image.
🏢 FinCEN Reporting for All-Cash Entity Purchases
• Starting March 1, 2026, escrow and settlement agents must report all-cash purchases by entities or trusts to FinCEN, adding more compliance and documentation steps in closings.
🧊 Mandatory Appliances in Rentals (AB 628)
• Residential rental units must include a working stove and refrigerator to meet minimum habitability standards for new or renewed leases starting January 1, 2026
The Los Angeles high-end market is experiencing a bit of softness, with buyers becoming more selective and price-sensitive. While demand remains strong for well-positioned luxury homes, overpricing or poor presentation can lead to extended days on the market and price reductions.
If you’re considering selling, marketing and negotiations are everything. Right now, serious buyers are still actively looking, but they’re prioritizing properties that are competitively priced and move-in ready. Sellers who act strategically—pricing correctly from the start, staging effectively, and leveraging top-tier marketing—can still achieve strong results despite what's happening in the market.
Thinking about selling? Let’s discuss the best timing and strategy for your home. Call me today for a confidential consultation.
This market is offering a unique opportunity for buyers who are ready to act. With less competition and fewer bidding wars, buyers can often secure properties at more favorable prices than in previous months. However, with the shift in the market, it’s important to approach this process strategically. Be Prepared to Move Quickly! While the market may not be as competitive, desirable properties still move fast.
Don't wait for an overpriced home to undergo a price reduction before making a lower offer—it may be too late. We’re seeing properties sit on the market for weeks with no offers, only to receive multiple bids after a small price reduction. You won’t get a good deal if you don’t ask, and it costs nothing to submit an offer—so don’t be afraid to go for it! Even if prices soften slightly, luxury properties in prime locations tend to appreciate over time. Focus on homes that offer both lifestyle and investment value. If you’re ready to explore the opportunities in today’s market, call me today. Let me help you find your dream home and secure the best possible deal! Even if prices soften slightly, luxury properties in prime locations tend to appreciate over time. Look for homes that offer both lifestyle and investment value. If you’re ready to explore the opportunities available in today’s market, call me today. Let me help you find your dream home and secure the best possible deal!
Check out the recent Redfin article we were featured in:
Build-To-Rent Homes: What You Need to Know About the Future of Single-Family Rentals
Build-to-rent (BTR) homes are ideal for people who want the benefits of community living without the hassle of maintenance, mortgage payments, or HOA dues. In recent years, the movement to create more of these types of homes has been increasing due to higher demand. Because of its rapid growth, many real estate companies and investors are developing BTR properties to capitalize on the craze.
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