January 2026 Market Watch: HOA Warnings, Rate Drops, and the "Sell-to-Buy" Comeback

By Kevin McDonald & Kevin Godley | The 818 Life

Welcome to the first market update of 2026!

At first glance, the Woodland Hills condo and townhouse market felt like it had a slow start to the year. Many sellers seem to be holding off on listing their homes, perhaps betting that ongoing local developments will drive property values higher later in the year.

However, the data tells a different story. Despite the "quiet" feeling, sales volume is actually up compared to this time last year. Let’s dive into the trends defining our market right now.

The "HOA Financial" Warning ⚠️

If you live in a condo or townhouse, this is the most critical update for January. We are seeing buyers—and more importantly, lenders—scrutinizing HOA financials more than ever before.

Why does this matter? Some communities in the area have effectively lost their ability to obtain conventional financing due to issues with their HOA budget health. When a complex loses financing eligibility, it limits the buyer pool to cash-only offers, which can significantly hurt property values.

• The Takeaway: If you are concerned about your HOA’s financial standing or upcoming dues increases, contact us. We can help you understand how this affects your home's value.

Good News for Buyers: Rates & Contingencies

Mortgage interest rates have dipped slightly, currently sitting in the 6.12% – 6.5% range. This decrease has unlocked more purchasing power and brought buyers back into the hunt.

Even better news? The "Sell-to-Buy" transaction is back. Six months ago, it was difficult to get an offer accepted if it was contingent on selling your current home first. Today, sellers are more willing to work with contingent offers. We recently placed multiple buyers into escrow who needed to sell their units first—without having to massively overbid.

The Landlord Dilemma: Sell or Rent?

We are noticing a distinct trend among our investor clients: More landlords are choosing to sell rather than re-rent.

Many owners feel that taking their equity and moving it into a different investment makes more sense than dealing with the current risks, the work of property management, and the aforementioned HOA scrutiny.

Recommendation: If you own a rental property and a lease is coming up for renewal, let's chat before you sign for another year. We can run the numbers on what improvements could net you the best ROI if you sold today versus holding.

January 2026 By The Numbers

Despite the perceived slowdown, sales activity is higher than it was in January 2025.

• Active Inventory: 35 Listings

• Homes in Escrow: 7 Listings

• Homes Sold (Jan '26): 10 (Up from 6 in Jan '25)

Notable Sales in January:

• High Sale: 21801 Burbank #74 sold for $732,500 (3 Bed/3 Bath)

• Volume Sale: 22255 1/2 Erwin sold for $680,000 (2 Bed/2 Bath)

• Entry Level: 21450 Burbank #203 sold for $362,000 (1 Bed/1 Bath)

What Our Clients Are Saying

In a shifting market, having an expert guide matters. Here is what R.H. had to say after selling their Owensmouth townhouse with us:

"They provided invaluable insights into neighborhood trends, property values, and the subtle nuances of the local real estate landscape... Kevin and Kevin are the definition of five-star service."

Bottom Line

Whether you are debating selling your rental, worried about your HOA, or looking to move up to a larger home, 2026 is presenting some unique windows of opportunity.

Thinking of making a move? Call us for a free, no-obligation strategy session.

Kevin McDonald & Kevin Godley Pinnacle Estate Properties 📞 818-256-7514 📧 [email protected] 🌐 DRE# 01810388 & 01216088

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