2026 Housing Market Outlook: What’s Ahead for Los Angeles and Beverly Hills

2026 Housing Market Outlook: What’s Ahead for Los Angeles and Beverly Hills | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

After a couple of years where the national housing market felt like it was idling, 2026 may be the year we see real momentum again — especially in Los Angeles and Beverly Hills.
Forecasts from Fannie Mae, MBA, and NAR show more home sales on the horizon, easing mortgage rates, and moderate but steady price appreciation. That means opportunity is opening back up — whether you’re planning to buy your dream home or finally ready to sell.

More Homes Are Expected To Sell in 2026

After several years of pent-up demand, total U.S. home sales are projected to rise from 4.8 million in 2025 to over 5.25 million in 2026.
In Los Angeles, we’re already seeing early signs of renewed buyer activity — private showings are increasing, luxury open houses are drawing more traffic, and serious buyers who sat on the sidelines during higher-rate years are re-engaging.

In Beverly Hills, this shift is even more pronounced. The luxury segment — which slowed from 2022–2024 due to high borrowing costs and global uncertainty — is regaining vitality. International buyers from Asia, the Middle East, and Europe are returning, while local upgraders are taking advantage of improved affordability.

Simply put: 2026 is shaping up as a “movement year” — the year many will finally make their long-delayed move.

Mortgage Rates Could Ease Further

If you’ve been waiting for mortgage rates to come down, the good news is — that wait may soon pay off.

After reaching nearly 7% earlier in 2025, most forecasts — including Fannie Mae, Wells Fargo, and MBA — expect rates to ease into the low 6s and potentially high 5s by late 2026.
In practical terms, that’s a significant boost to purchasing power. Even a small drop in rates can save Los Angeles buyers hundreds, if not thousands, of dollars monthly — a difference that often determines whether you can buy in Hancock Park, Beverly Grove, or cross into the coveted Beverly Hills flats.

There’s an old saying in real estate: “When rates rise, they take the elevator — when they fall, they take the stairs.”
So yes, the path down will be gradual, but the direction is encouraging. The overall trend points to increasing affordability and renewed buyer confidence.

Home Prices Will Grow at a Sustainable Pace

Nationally, price forecasts for 2026 range from +1% to +4% depending on the source — signaling stability, not volatility.
For Los Angeles and Beverly Hills, price performance is expected to outpace national averages, largely because of ongoing inventory shortages, limited new construction, and continued demand for trophy properties.

Here’s what this means locally:

• Beverly Hills: Prime properties in the Flats, Trousdale, and north of Sunset areas will likely see moderate appreciation as inventory remains historically tight.

• Bel Air and Holmby Hills: Ultra-luxury homes will continue trading selectively, but quality listings with architectural pedigree or views will command top dollar.

• West Hollywood and Hancock Park: Condos and smaller single-family homes will remain competitive due to strong buyer demand and limited availability.

• Greater Los Angeles: Submarkets like Brentwood, Pacific Palisades, and Encino will continue attracting buyers moving westward for lifestyle and privacy.

Bottom line — we’re not seeing any signs of a price “crash.” Instead, we’re entering a healthier, more predictable market where values appreciate steadily rather than skyrocket.

What This Means for Buyers and Sellers in 2026

For Buyers:
If you’ve been waiting for the right time, 2026 may present the ideal window. Slightly lower rates and stable prices mean better selection and more negotiating room — particularly early in the year before demand fully rebounds.

For Sellers:
This is the moment to prepare. With more buyers re-entering the market and overall activity rising, well-priced, well-presented homes will capture attention faster than they have in years.
In prime areas like Beverly Hills, Holmby Hills, and Bel Air, presentation and pricing precision will matter more than ever — homes that tell a compelling story and are expertly marketed will dominate the luxury segment.

The Takeaway

After two transitional years, 2026 is expected to bring balance and opportunity back to the market.
With sales climbing, mortgage rates softening, and prices normalizing, both buyers and sellers will find renewed confidence in making their next move.

If you’re considering buying or selling in Los Angeles or Beverly Hills, now is the time to start strategizing.
Let’s connect to discuss how you can take advantage of what’s shaping up to be one of the most dynamic markets in recent years.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value