The Power of Pricing
As we move into November, buyers have more homes to compare, financing remains expensive, and sellers face a market that demands careful positioning. A beautiful home and strong marketing still matter, but the asking price needs to make sense alongside the alternatives buyers are considering.
My takeaway from October's numbers: a slower market does not mean every home takes months to sell. It means the gap between a compelling listing and one that misses buyers' expectations becomes more visible.
More Inventory, Fewer Pending Sales
As of October 26, Los Angeles County had 15,395 active listings, up approximately 2% over two weeks. Buyer demand, measured by new pending sales over the preceding month, fell to 2,879, a decline of approximately 5% over the same period.
That combination pushed Expected Market Time to 160 days, compared with 114 days a year earlier and a pre-pandemic benchmark of 78 days.
Expected Market Time describes how long it would take to absorb current inventory at the current buying pace. It is a market-wide indicator, not the average days on market for completed sales or a forecast for an individual property.
For sellers, more inventory means buyers can more easily move on to another option. For buyers, it creates an opportunity to compare homes and negotiate with greater care.
Mortgage Rates Keep the Focus on Monthly Payments
The October 26 report cited Mortgage News Daily's average 30-year fixed mortgage rate at approximately 7.33%. That is a dated market benchmark; an individual quote will depend on the borrower, loan program, points, and other terms.
Higher financing costs limit what buyers can comfortably spend. A home may meet their needs, but the total monthly cost still has to work.
That makes the structure of an offer worth discussing. Depending on the property and financing, a price adjustment or seller credit toward eligible closing costs or a rate buydown may help. Buyers should have their lender compare the options and evaluate affordability after any temporary buydown expires.
What September Sales Reveal About Pricing
Among Los Angeles County homes that closed in September, the results differed substantially depending on whether the asking price had been reduced:
Pricing history | Share of September closings | Median days to pending | Sale price as a percentage of final asking price |
|---|---|---|---|
No price reduction | 70% | 19 | 100.0% |
Price reduced 1%–4% | 12% | 63 | 98.5% |
Price reduced 5% or more | 18% | 84 | 98.0% |
The distinction between the original and final asking price matters. For homes with reductions of at least 5%, the sale price averaged 89.6% of the original asking price.
These figures show an association, not proof that a price reduction caused a lower sale price. Condition, location, property characteristics, and seller circumstances also affect results. They do, however, reinforce the importance of setting realistic expectations before launching.
I would not interpret selling at asking price as proof that every home was perfectly priced. My practical takeaway is that an ambitious starting price needs support from current competition and buyer behavior, not simply the seller's desired outcome.
Property Type and Price Range Make a Difference
Countywide figures are a starting point. October's Expected Market Time varied considerably:
Property segment | Expected Market Time |
|---|---|
Detached homes | 135 days |
Condominiums and townhomes | 232 days |
Homes above $2 million | 280 days |
Even within the luxury market, the pace differed: the $2 million–$3 million segment stood at 189 days, while the $4 million–$8 million segment reached 332 days.
For a seller in Baldwin Vista, West LA, or Culver City, the relevant competition is the group of homes a buyer would realistically consider instead. Countywide averages cannot replace that neighborhood-level analysis. These Los Angeles County statistics also should not be treated as Orange County market data.
What I Recommend for Sellers
Start with recent comparable sales, then examine active competition, pending activity, and the features that distinguish your home. Preparation, photography, clear property information, and access for showings should support the pricing strategy.
Once the home launches, listen closely to the response. Showing activity, repeat visits, agent feedback, and offers provide evidence for the next decision. If interest falls short, reassess while the listing is still fresh rather than waiting for an arbitrary number of days.
What Buyers Can Do With More Choice
Use the additional inventory to compare value carefully and investigate condition, disclosures, and ownership costs. A longer listing history may create room to discuss price or terms, but it does not establish that a seller must accept a discount.
Keep your financing current and base the purchase on a payment you can sustain. A future refinance may become available, but it should not be necessary for the purchase to work today.
Planning Your Next Move
As the holiday season approaches, your timing should reflect your goals, your property's competition, and your financial position. There is no single best answer for every household.
If you are considering buying or selling, let's look at the conditions in your neighborhood and build a plan around the decisions that matter to you.
Hamid Koochak
Broker Associate | Compass
CA DRE #01926949
949.572.9005
Source: Steven Thomas, Reports On Housing, Los Angeles County Housing Report, October 26, 2026. Sales comparisons refer to September 2026 closings. Commentary and practical recommendations are Hamid Koochak's interpretation. Market statistics are snapshots and may change.
