Southern California home prices dropped again in December, capping off a yearlong skid that saw the average home value in the six-county region drop by more than $7,000. It’s the lowest that Southern California home values have been since March 2024. If the Trump administration’s policies end up pushing the economy into a recession, some economists say home prices could drop much further. The real estate firm expects that next year, home prices will rise 1.2% both nationally and in L.A.Housing prices by city and neighborhoodAdvertisementNote to readers Welcome to the Los Angeles Times’ Real Estate Tracker. Every month we will publish a report with data on housing prices, mortgage rates and rental prices.