Is Los Angeles Real Estate Really Dying in 2025?

TLDR: NO — the Los Angeles housing market is stabilizing. Median home prices, lower mortgage rates, and steady demand show normalization across LA County and city neighborhoods.

What the Latest Data Shows

You may have heard talk of a “dying market” in Los Angeles real estate. The truth is more nuanced: while activity has cooled compared to the frenzy of 2021–22, buyers and sellers today are finding opportunities shaped by steadier prices, lower rates than last year, and a market that rewards patience and negotiation.

The Los Angeles real estate market has shifted into a healthier rhythm in late 2025. According to Redfin, the median home price in Los Angeles city reached $1,032,500 in August, up 2.2% year-over-year. Los Angeles County also reported a median price of $909,500, a 1.1% gain (Redfin County Report).

Homes are spending more time on the market, averaging 62 days in Los Angeles city and 53 days across the county, compared with 47 and 39 days last year (Redfin). This pace aligns with historical norms of 60–90 days, a healthier environment than the pandemic years when homes often sold in a week. Today’s timing gives buyers space to evaluate and negotiate, while sellers still succeed with accurate pricing and strong presentation.

The takeaway: home prices and home values remain steady, supported by ongoing demand and limited supply.

Inventory, Listings, and Buyer Dynamics

Active Listings and Inventory Levels

Inventory has grown compared with 2024, giving buyers more housing units to consider. This improves choice and negotiating power, especially for those targeting mid-range homes. For sellers, increased competition means presentation and pricing matter more than ever. Buyers now have time to breathe, while sellers still see results when they align with current conditions.

Sales-Price-to-List-Price Ratio

The sales-price-to-list-price ratio has shifted closer to 98–99%, compared with 102–104% in 2021 (Redfin). This indicates that buyers have more room to negotiate, though sellers who present their homes well still close near asking price.

Buyer’s Housing Market in Pockets

Certain neighborhoods show features of a buyer’s housing market, though this is not uniform across Los Angeles County. Mid-tier homes in Silver Lake and Highland Park often linger on the market beyond 60 days, giving buyers leverage to negotiate. In contrast, luxury estates in Los Feliz and Hancock Park continue to attract competitive offers.

Mortgage Rates and Affordability

Rates, Affordability, and Negotiating Power

Mortgage rates are at their lowest since 2023, averaging about 6.26% for a 30-year fixed loan (AP News, Reuters). This shift has already improved affordability and given buyers more room to negotiate.

Renting vs. Buying Today

The median two-bedroom rental in Los Angeles is currently about $2,950 per month (Zillow, Sept. 2025). By comparison, purchasing a median-priced home (~$860,000) with 20% down at 6.3% results in a monthly mortgage payment of about $4,350 before taxes and insurance. While buying costs more upfront, it builds equity and provides long-term stability in a market where rents continue to climb.

Neighborhood Snapshots

Hancock Park

Homes under $2 million in Hancock Park continue to sell steadily, especially those that retain historic character. Buyers here value stately lots, tree-lined streets, and proximity to central Los Angeles. A staged 1920s Spanish home recently sold with three offers after 40 days on market. Even as timelines lengthen, well-presented homes achieve strong results in this prestigious neighborhood.

Los Feliz

Los Feliz appeals to creative buyers who prize architectural charm and vibrant culture. According to Redfin, well-priced homes here often sell within 30–45 days, outperforming city averages. A recent Tudor revival listed at $1.6M received four offers in just over a month. The neighborhood’s blend of historic homes, cultural amenities, and proximity to Griffith Park makes it one of LA’s most resilient submarkets.

Silver Lake

Silver Lake draws design-forward buyers who value lifestyle and architecture. Walkable streets, boutique cafes, and hillside views enhance its appeal. Modern builds and homes with strong design elements command premiums even as days on market stretch beyond county averages. One contemporary hillside home closed near asking after 65 days with two offers, proving that unique architecture continues to attract buyers.

Why the Market Isn’t Collapsing

• City and county median home prices are modestly up year-over-year.
• Homes are taking longer to sell, reflecting a healthier balance rather than weakness.
• Inventory has increased moderately, but supply has not overwhelmed demand.
• Housing production has lagged demand; most new units serve the luxury rental market, leaving middle-income buyers competing for a small supply of well-priced homes.

Affordability and Long-Term Trends

The California Association of Realtors projects statewide home sales will increase 2% in 2026, with the median home price rising 3.6% (CAR Forecast). Affordability has also improved: 17% of households could buy the median-priced home in early 2025, up from 15% in late 2024 (CAR Housing Affordability Index).

The Role of Real Estate Agents

Experienced real estate agents are essential in today’s environment. With fewer bidding wars and more active listings, strategy matters more than ever. Agents evaluate comps for precise pricing, stage and market homes to stand out, and help buyers interpret neighborhood-level trends. One recent Los Feliz sale succeeded after staging and pricing adjustments recommended by an agent, proving that professional guidance determines whether a home lingers or sells efficiently.

What Buyers Need to Know Now

For buyers, today’s market offers the best window in years. With rates down and homes averaging 53–62 days on market, you have time to evaluate and negotiate. Instead of rushed offers, you can compare neighborhoods like Los Feliz, Hancock Park, and Silver Lake. While steep discounts are unlikely, realistic pricing and broader inventory give buyers more leverage.

What Sellers Need to Know Now

For sellers, success depends on strategy. Buyers are more deliberate, so accurate pricing and professional presentation are critical. Staged and well-photographed homes in desirable neighborhoods still attract multiple offers, especially under $2 million. The key is aligning with today’s housing market dynamics. Sellers who adapt quickly see strong results despite longer average timelines.

*****

The Los Angeles housing market is stabilizing, not collapsing. For buyers, this creates more choice and better financing conditions. For sellers, success comes from precise pricing and thoughtful presentation. If you are planning a move in Hancock Park, Los Feliz, Silver Lake, or anywhere in Los Angeles County, I can help you separate fact from headlines and navigate with confidence.

Reach out today for a free, no-obligation strategy session to get you where you need to go.

Frequently Asked Questions

Q: Is Los Angeles in market recovery mode?
Yes. Local and statewide data show modest growth in home prices and improving affordability, confirming gradual market recovery. Conditions are steadier, offering both buyers and sellers more predictability.

Q: How do current home sale prices compare across Southern California?
Los Angeles County shows modest gains, similar to other parts of Southern California. This consistency across the region points to stability. While submarkets move at different speeds, the broader trend is balance rather than volatility.

Q: What role does the unsold inventory index play?
The unsold inventory index measures months of supply, with six months considered balanced. Los Angeles is trending toward this range. Buyers benefit from added leverage, while sellers must price carefully to stand out.

Q: How do property taxes and Proposition 13 affect sales?
California’s property tax system, shaped by Proposition 13, creates a lock-in effect where long-time owners hesitate to sell. This limits supply and helps stabilize home values even during corrections.

Q: Should renters wait or buy now?
With mortgage rates at one-year lows and modest median home price growth, buying can be as cost-effective as renting. Rising rental prices may tilt the balance further toward ownership.

Q: How do interest rates affect long-term buyers versus investors?
Owner-occupiers benefit most from today’s lower rates, reducing monthly costs for decades. Investors weigh rates against rental yields and purchase prices, but falling interest rates improve prospects for both groups.

Hero Image Credit: “777 Alameda St” by Chris Wormhoudt, free to use under the Unsplash License.