“Window of Opportunity” (October 2025)
With mortgage rates at their lowest point in over a year and housing inventory up 18%, Los Angeles County buyers have a rare opportunity to act before competition picks up again.
Why It’s a Great Time to Buy
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Rates below 6.5%: Mortgage rates have stayed under this level for nearly two months — the longest stretch since 2022 — and are projected to remain favorable through early 2026.
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Improved affordability: A buyer with a $5,000 monthly budget (principal and interest only) and 20% down can now afford a $1.015M home, up from $940K when rates were 7%. That’s $75,000 more purchasing power thanks to today’s lower rates.
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More homes to choose from: There are 14,343 homes currently on the market — the most for this time of year since 2018 and 18% more than last year.
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Motivated sellers: Homes are taking longer to sell — averaging 114 days on the market, the slowest pace since 2012 — which means many sellers are more open to negotiating on price, closing costs, or interest rate buydowns.
The Market Outlook
Right now, the market is in a calm phase — before activity typically increases in early 2026 as more buyers return. As rates stay low and confidence grows, competition is expected to rise, especially during the spring selling season.
Key Takeaway
The next few months represent a window of opportunity for buyers — with low mortgage rates, greater inventory, and flexible sellers. Those who act before the new year may find better options and less competition than those who wait for spring.
Los Angeles County Housing Summary
- INVENTORY: The active listing inventory over the past couple of weeks decreased by 230 homes, down 2%, and now stands at 14,343, its second largest drop of the year and its lowest level since May. Last year, there were 12,106 homes on the market, 2,237 fewer homes, or 16% less. The 3-year average before COVID (2017-2019) was 12,890, which is 10% lower. From January through September, 14% fewer homes came on the market compared to the 3-year average before COVID (2017-2019), 10,561 less. Yet, 6,930 more sellers came on the market this year than last, and 15,682 more compared to 2023.
- DEMAND: Buyer demand, the number of pending sales over the prior month, increased by 16 pending sales in the past two weeks, nearly unchanged, and now totals 3,778. Last year, demand was at 3,757 pending sales, 1% fewer. The 3-year average before COVID (2017-2019) was 5,024, which is 33% higher.
- MARKET TIME: With supply falling and demand rising, the Expected Market Time, the number of days to sell all Los Angeles County listings at the current buying pace, decreased from 116 to 114 days in the past couple of weeks, still its highest end-of-October level since tracking began in 2012. Last year, it was 97 days, faster than today. The 3-year average before COVID (2017-2019) was 78 days, which is 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 165 to 149 days. The Expected Market Time for homes priced between $3 million and $4 million decreased from 223 to 222 days. The Expected Market Time for homes priced between $4 million and $8 million increased from 269 to 309 days. The Expected Market Time for homes priced above $8 million increased from 508 to 593 days.
- DISTRESSED HOMES: Short sales and foreclosures combined, comprised only 0.9% of all listings and 0.9% of demand. There are 67 foreclosures and 56 short sales available today in Los Angeles County, totaling 123 distressed homes on the active market, up six from two weeks ago. Last year, 88 distressed homes were on the market, fewer than today.
- CLOSED SALES: There were 3,923 closed residential resales in September, up 5% from September 2024’s 3,747 and nearly unchanged from August 2025. The sales-to-list price ratio was 98.6% for Los Angeles County. Foreclosures accounted for 0.4% of all closed sales, and short sales accounted for 0.1%. That means that 99.5% of all sales were sellers with equity.
Let’s connect to review available homes, new mortgage opportunities, and negotiation strategies that make sense for your goals.
