Anyone who has observed the Santa Monica coastline for a long time will feel that home prices in this area have not surged as steeply as in other neighborhoods in Los Angeles.

According to Zillow, the median home value in Santa Monica was about $1.48 million at the beginning of 2021, and as of 2026, it stands at around $1.697 million. The increase over five years is about 15 percent, which is quite moderate compared to the national average cumulative increase of 35-45 percent.

Year by year, from 2021 to early 2022, prices rose similarly to other areas, but starting from a very high price point and due to the nature of the luxury housing market, the impact of interest rate hikes has been felt more acutely, leading to a noticeable reduction in price increases since late 2022. In the past year, there has even been a slight decline of just over 1 percent.

Several reasons contribute to this gradual trend. The fact that Santa Monica is a fully developed coastal city with almost no new supply continues to support prices, but at the same time, the burden of rising mortgage rates is felt more by buyers of high-end homes, which has also contributed to a decrease in purchasing sentiment.

The first concern that comes to mind is whether this prolonged gradual trend means it is relatively a good time to buy. In fact, since it has not experienced a rapid surge, the relative burden compared to other high-end areas can be considered less.

Looking ahead, a cautious perspective is necessary. The scarcity of coastal locations remains valid in the long term, but as long as high interest rates persist, the characteristics of the luxury housing market suggest that a sharp rebound is less likely, and a gradual trend is expected to continue for the time being.

For Korean households, it is important to first acknowledge that Santa Monica is still a city with very high prices, but if one plans to hold long-term, the unique stable trend of this area could actually be an advantage. If considering selling, it may be wise to trust in the scarcity value of coastal locations and watch the market with patience rather than rushing into a decision.