LA Condos Are the Soft Spot: Why a Record Share of Listings Are Cutting Prices

By Diana L. Marquez, Real Estate Agent | CA DRE #01418705 | eXp Realty of Southern California, Inc., DRE #02187306

Published Monday, October 12, 2026

I am Diana Marquez, and I approach each real estate decision with care, clear information, and room for you to decide what feels right. This week, one distinction matters: Los Angeles single-family homes are holding relatively steady, while condos are showing more pressure to adjust asking prices. They are two different markets, and they call for two different strategies.

That does not mean the broader market is crashing. The latest figures point to a market that is mostly flat, with buyers and sellers taking more time to agree on price. For condo sellers, that makes accurate pricing especially important. For condo buyers, it can create genuine room to negotiate.

The Condo Difference

The California Association of REALTORS® August data put the Los Angeles County single-family median at $946,950, up 1.7% year over year. Other broad measures tell a similarly measured story: the regional Case-Shiller reading is about 1.1% higher, and Zillow shows Los Angeles values essentially flat. That is closer to flat than dramatic in either direction.

Inventory has increased, too. Active listings in Los Angeles County were about 15,400 in September, roughly 4% more than a year earlier, while unsold inventory was still only 3.9 months. That level points to a standoff, not a glut.

The condo signal is different. In the early-October Los Angeles County condo listing snapshot used for this briefing, about 37% of listings had taken a price cut, a record in some datasets. That is a measure of sellers adjusting their asking prices, not proof that every condo’s value is falling. It does show where expectations are being tested.

For Condo Sellers

A stale price can cost more than a thoughtful adjustment. Buyers comparing several similar homes may choose the newly adjusted listing that feels grounded in the market. A listing that waits at an unsupported price can become the example other units are measured against, and may invite buyers to negotiate even more firmly.

The first step is a defensible condo number, not an optimistic one. Start with recent closed condo sales, ideally in the same building or a closely comparable one. A common pricing mistake is using single-family homes as comps. A house with its own lot, different maintenance costs, and a different buyer pool is not a sound comparison for a condo.

Then look closely at the building and the unit:

• Same-building sale history: Recent sales in the building can reveal what buyers have actually accepted, including differences in floor, view, condition, parking, and layout. That history often tells you more than a citywide average.
• HOA dues: Buyers include monthly dues in their housing budget. Higher dues can limit what they can comfortably pay for the unit, even if the list price seems reasonable.
• Special assessments and reserves: An upcoming assessment or limited reserve fund may raise questions about future costs. Clear, accurate information helps buyers evaluate the full picture.
• Rent-versus-own math: For an investor, compare realistic rent with the mortgage, HOA dues, taxes, insurance, maintenance, and vacancy allowance. For an owner-occupant, compare the full monthly cost with available alternatives, not just the mortgage payment.

A thoughtful home valuation pricing strategy reflects all of these details. If the first price is not bringing qualified showings or serious feedback, I would rather revisit the evidence with you early than let the listing sit while buyers draw their own conclusions. A price improvement is not a failure; it can be a practical response to what the current condo market is telling us.

For Condo Buyers

Leverage today may look like a seller-paid rate buydown, closing-cost credit, repair agreement, or help addressing an HOA-related issue. It does not mean every seller will agree to every request. It means there may be space to make a specific, well-supported proposal.

A seller-paid 2-1 buydown is one option. In plain language, it temporarily lowers the buyer’s mortgage payment rate for the first two years: two percentage points below the loan’s note rate in year one, then one point below in year two. After that, the payment returns to the note rate. For example, if the note rate were 7.4%, the temporary payment would be calculated at 5.4% in year one and 6.4% in year two, then 7.4% afterward. The seller typically funds the buydown through an agreed credit, subject to lender rules. It can ease payments without waiting for market rates to change, but buyers should make sure the later payment is manageable.

Rates and Timing

As of October 8, 2026, Freddie Mac reported a 30-year fixed rate of 7.40%, up from 7.28% the prior week and the seventh consecutive weekly increase. The 15-year fixed rate was 6.73%, up from 6.60%. Freddie Mac’s weekly rate archive lists these figures; a year ago, the 30-year rate was 6.30%.

For context, this week’s lender indexes show FHA around 7.18%, VA around 7.09%, and jumbo around 7.37%. These are lender indexes, not borrower quotes. A jumbo loan is only about five basis points below the conforming rate in this snapshot, so condo buyers who assume a larger loan must carry a much higher rate may want to compare actual options.

One reason mortgage rates remain elevated: the 10-year Treasury is near 5.2–5.3%, August inflation was 3.4%, and the mortgage-bond spread is unusually wide, so some relief has not reached lender rate sheets. I would not build a plan around sub-6% rates arriving soon, and sub-7% in the near term is uncertain. Waiting is a bet on cooler inflation, not a plan.

If you are comfortable with the home and payment, “marry the house, date the rate” can be a useful way to think about it: negotiate the price and any available credits now, and consider refinancing later if rates fall and the numbers make sense. Refinancing is never guaranteed to be available or beneficial, so make sure today’s payment works for you. If you expect to close within 30–45 days, ask your lender whether locking makes sense, and compare quotes from multiple lenders because rate sheets vary.

There were no new FHA, VA, conventional, or CalHFA program changes this week. CalHFA’s latest posted bulletin is dated August 26 and concerns its Disaster Rebuilding Assistance Program.

A Different Strategy for Each Market

The condo market and single-family market are diverging. Buyers who feel priced out of single-family homes should not assume a condo will involve the same negotiation, or that every condo offers the same leverage. Building finances, dues, unit history, and condition matter.

If you are selling, I can help you review recent closed condo sales, building records, and buyer affordability before settling on a number. If you are buying, I can help you compare the full monthly cost and explore practical offer terms. I meet people where they are, explain each step in plain language, and make space for a thoughtful decision.

Diana L. Marquez | CA DRE #01418705 | eXp Realty of Southern California, Inc. — DRE #02187306

Ready to talk through your condo — whether you are pricing one to sell or weighing an offer to buy? You can connect with Diana Marquez to review the building, the numbers, and your options, with no pressure and no rush.

Diana L. Marquez | CA DRE #01418705 | eXp Realty of Southern California, Inc. — DRE #02187306