THE WAIT
The Los Angeles housing market in 2025 is shaping up to be the slowest in recent memory. Despite more homes being listed than in the past few years, buyers haven’t increased in step—creating an environment where many sellers are stuck in limbo, waiting far longer than they expected to attract offers.
Sellers Face a Crowded and Cautious Market
Inventory levels have surged, nearly doubling compared to 2023. But demand has barely budged, weighed down by affordability challenges and high mortgage rates. With so many homes now competing for fewer active buyers, properties are sitting on the market much longer than usual. It’s not uncommon for sellers to wait two months or more—especially in the higher price ranges—without a serious offer.
One major shift this year is pricing: the days of testing the market with inflated asking prices are over. Today’s buyers are cautious and price-sensitive. Homes that are priced too high or not in top condition are being overlooked, no matter the location or amenities. Sellers need to be strategic and realistic, or risk getting stuck.
Many Sellers Pulling Out
As summer winds down and school season approaches, some sellers are throwing in the towel altogether. Over 15,000 homes have been removed from the market so far this year—nearly double last year’s number. This trend is expected to continue as we enter the slower fall and holiday seasons.
Buyers Have Leverage—But No Fire Sales
Although the market is tilting toward buyers in terms of negotiation, that doesn’t mean prices are plummeting. Most sellers aren’t desperate. So while buyers may have more room to negotiate, they shouldn’t expect major discounts. The key to success on both sides is understanding fair market value—and acting accordingly.
The Luxury Market Is Especially Slow
Higher-end homes (over $2 million) are moving at a snail’s pace. It’s taking over 260 days on average to sell a luxury property, and for ultra-high-end listings, the timeline stretches past 1,000 days. While there’s been a slight increase in activity compared to last year, the top of the market remains sluggish.
What’s Next?
The coming months will be telling. If mortgage rates drop below 6.5% and stay there, buyer activity could pick up. But if rates remain elevated, expect continued slowdowns, more price adjustments, and even more listings pulled off the market.
For now, patience and smart pricing are essential. Whether you're selling or buying, success in this market depends on preparation, strategy, and a willingness to adapt.
Los Angeles County Housing Summary
- INVENTORY: The active listing inventory over the past couple of weeks increased by 549 homes, up 4%, and now stands at 15,256, its highest level since November 2018. Last year, there were 11,157 homes on the market, 4,099 fewer homes, or 27% less. The 3-year average before COVID (2017-2019) was 13,290, which is 13% lower. From January through June, 13% fewer homes came on the market compared to the 3-year average before COVID (2017-2019), 6,233 less. Yet, 6,317 more sellers came on the market this year than last, and 11,815 more compared to 2023.
- DEMAND: Buyer demand, the number of pending sales over the prior month, decreased by 34 pending sales in the past two weeks, down 1%, and now totals 3,585, its lowest level since February. Last year, there were 3,722 pending sales, 4% more. The 3-year average before COVID (2017-2019) was 5,543, which is 55% higher.
- MARKET TIME: With supply rising and demand falling, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, increased from 122 to 128 days in the past couple of weeks, its highest level since January 2019. Last year, it was 90 days, substantially faster than today. The 3-year average before COVID (2017-2019) was 72 days, which is also much quicker than today.
- LUXURY: In the past two weeks, the Expected Market Time for homes priced between $2 million and $3 million increased from 166 to 184 days. The Expected Market Time for homes priced between $3 million and $4 million increased from 237 to 238 days. The Expected Market Time for homes priced between $4 million and $8 million decreased from 324 to 309 days. The Expected Market Time for homes priced above $8 million increased from 915 to 1,052 days.
- DISTRESSED HOMES: Short sales and foreclosures combined, comprised only 0.7% of all listings and 1.0% of demand. There are 59 foreclosures and 48 short sales available today in Los Angeles County, totaling 107 distressed homes on the active market, an increase of eight from two weeks ago. Last year, 66 distressed homes were on the market, slightly fewer than today.
- CLOSED SALES: There were 4,022 closed residential resales in June, nearly unchanged from June 2024’s 4,032 and down 3% from May 2025. The sales-to-list price ratio was 98.2% for Los Angeles County. Foreclosures accounted for 0.2% of all closed sales, and short sales accounted for 0.2%. That means that 99.6% of all sales were sellers with equity.
If you're thinking about buying or selling in today’s market, don’t do it alone. Every neighborhood in Los Angeles tells a different story—and a hyper-local strategy can make all the difference. Contact me today to discuss your real estate goals and get a customized plan that fits the current market conditions.
