The Buyer's Roadmap
The Los Angeles County housing market is leaning further in favor of buyers this summer. In July, 54% of all closed sales sold below the original list price, a sign that many sellers are adjusting expectations to meet market realities. This is the highest level since early 2023 and reflects a slower pace of sales, longer market times, and growing opportunities for negotiation.
Still, the market remains a tale of two stories. Homes in need of upgrades, those in less desirable locations, or overpriced listings are lingering on the market—often selling after price cuts or extended time. The median market time in July was 43 days, and the median discount from list price was $35,000. On the flip side, well-priced, turnkey homes in good locations are drawing strong attention. About 36% of sales closed above asking price, often within two weeks, with buyers paying an average of $30,000 more to win against competing offers.
Inventory is holding near its highest point since 2018, with 15,310 homes currently listed, while demand has ticked up 5% as mortgage rates eased to around 6.5%–6.6%, their lowest levels this year. This has slightly improved the Expected Market Time, now at 121 days, though still far slower than last year’s 88 days. Condos and townhomes are showing the most drag, averaging nearly five months to sell, while detached homes remain more resilient at just under four months. Even at the high end, the luxury market is holding steady: homes priced above $2 million saw stronger demand in the past two weeks, trimming expected market time to 228 days.
Overall, Los Angeles real estate in 2025 is presenting buyers with a clearer roadmap than in years past. Turnkey properties are still competitive, but many homes are sitting longer, opening the door for negotiation. For buyers, knowing the data is key—market stats can help separate the properties worth competing for from those where patience and strategy can yield a better deal. For sellers, success in this market comes down to realistic pricing and presenting homes in the best possible condition.
The Los Angeles County housing market is leaning further in favor of buyers this summer. In July, 54% of all closed sales sold below the original list price, a sign that many sellers are adjusting expectations to meet market realities. This is the highest level since early 2023 and reflects a slower pace of sales, longer market times, and growing opportunities for negotiation.
Still, the market remains a tale of two stories. Homes in need of upgrades, those in less desirable locations, or overpriced listings are lingering on the market—often selling after price cuts or extended time. The median market time in July was 43 days, and the median discount from list price was $35,000. On the flip side, well-priced, turnkey homes in good locations are drawing strong attention. About 36% of sales closed above asking price, often within two weeks, with buyers paying an average of $30,000 more to win against competing offers.
Inventory is holding near its highest point since 2018, with 15,310 homes currently listed, while demand has ticked up 5% as mortgage rates eased to around 6.5%–6.6%, their lowest levels this year. This has slightly improved the Expected Market Time, now at 121 days, though still far slower than last year’s 88 days. Condos and townhomes are showing the most drag, averaging nearly five months to sell, while detached homes remain more resilient at just under four months. Even at the high end, the luxury market is holding steady: homes priced above $2 million saw stronger demand in the past two weeks, trimming expected market time to 228 days.
Overall, Los Angeles real estate in 2025 is presenting buyers with a clearer roadmap than in years past. Turnkey properties are still competitive, but many homes are sitting longer, opening the door for negotiation. For buyers, knowing the data is key—market stats can help separate the properties worth competing for from those where patience and strategy can yield a better deal. For sellers, success in this market comes down to realistic pricing and presenting homes in the best possible condition.
Los Angeles County Housing Summary
- INVENTORY: The active listing inventory over the past couple of weeks increased by 30 homes, nearly unchanged, and now stands at 15,310, still its highest level since November 2018. Los Angeles County may reach its 2025 peak in August, marking its first normal July-to-August peak since 2022. Last year, there were 11,495 homes on the market, 3,815 fewer homes, or 25% less. The 3-year average before COVID (2017-2019) was 13,288, which is 13% lower. From January through July, 13% fewer homes came on the market compared to the 3-year average before COVID (2017-2019), 7,490 less. Yet, 6,800 more sellers came on the market this year than last, and 13,511 more compared to 2023.
- DEMAND: Buyer demand, the number of pending sales over the prior month, increased by 164 pending sales in the past two weeks, up 3%, and now totals 3,792, its largest rise since May. Last year, demand reached 3,906 pending sales, 3% more. The 3-year average before COVID (2017-2019) was 5,646, which is 49% higher.
- MARKET TIME: With demand rising and supply falling, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, decreased from 126 to 121 days in the past couple of weeks, still its highest August level since tracking began in 2012. Last year, it was 88 days, substantially faster than today. The 3-year average before COVID (2017-2019) was 71 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 decreased from 183 to 150 days. The Expected Market Time for homes priced between $3 million and $4 million increased from 210 to 227 days. The Expected Market Time for homes priced between $4 million and $8 million decreased from 300 to 270 days. The Expected Market Time for homes priced above $8 million decreased from 768 to 767 days.
- DISTRESSED HOMES: Short sales and foreclosures combined, comprised only 0.7% of all listings and 0.7% of demand. There are 58 foreclosures and 42 short sales available today in Los Angeles County, totaling 100 distressed homes on the active market, an increase of three from two weeks ago. Last year, 76 distressed homes were on the market, slightly fewer than today.
- CLOSED SALES: There were 4,331 closed residential resales in July, nearly unchanged from June 2024’s 4,326 and up 8% from June 2025. The sales-to-list price ratio was 98.1% for Los Angeles County. Foreclosures accounted for 0.4% of all closed sales, and short sales accounted for 0.2%. That means that 99.4% of all sales were sellers with equity.
Navigating today’s market takes more than general data—it takes hyperlocal insights and tailored strategies. If you’d like a deeper look at your neighborhood, or want to discuss the best approach for buying or selling in this shifting market, let’s connect. You can reach me directly at 949.572.9005
