Los Angeles Housing Market: Foreseen Wave
The Calm Before the Storm
The Los Angeles housing market is offering a rare opportunity for buyers — more listings, improving mortgage rates, and a slower pace compared to recent years. But this window won’t last forever.
Why Now Is a Great Time to Buy
Buyers today enjoy more choices, less competition, and steadier home prices. It’s the most balanced market we've seen in years, especially for spring. Fewer bidding wars and longer market times mean buyers have more leverage — but that won’t be the case for long.
What’s Coming Next
Spring always brings more listings, and this year is no different. Inventory will continue to rise, giving buyers even more options. At the same time, demand typically climbs through April and May — and we’re already seeing that trend begin.
If mortgage rates dip to around 6%–6.5%, buyer demand is expected to surge significantly. We've already seen how even a slight drop in rates can trigger a wave of activity. When that happens, expect faster sales, multiple offers, and rising home prices.
Buyer Tips
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Act before the wave: Take advantage of the current calm before demand picks up.
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More homes are coming: Spring will bring more inventory — keep an eye out.
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Watch rates closely: A drop to 6–6.5% will heat things up fast.
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Negotiate now: Sellers may be more flexible before the market tightens again.
Bottom Line: This spring presents a rare sweet spot for buyers — more choices, steady prices, and a chance to move before the market shifts into high gear.
Los Angeles County Housing Summary
- The active listing inventory in the past couple of weeks increased by 343 homes, up 3%, and now sits at 11,469 homes, its highest level for this time of year since 2019. In February, 10% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 656 less. Yet 1,025 more sellers came on the market this February compared to February 2024. Last year, there were 7,924 homes on the market, 3,545 fewer homes, or 31% less. The 3-year average before COVID (2017 to 2019) was 10,983, or 4% fewer.
- Demand, the number of pending sales over the prior month, increased by 194 pending sales in the past two weeks, up 5%, and now totals 3,810, its highest level since October. Last year, there were 3,647 pending sales, 4% less. The 3-year average before COVID (2017 to 2019) was 5,461, or 43% more.
- With demand rising slightly faster than supply, the Expected Market Time (the number of days it takes to sell all Los Angeles County listings at the current buying pace) decreased from 92 to 90 days in the past couple of weeks, its strongest reading since August. It was 65 days last year, substantially faster than today. The 3-year average before COVID (2017 to 2019) was 61 days, also much faster than today.
- In the past couple of weeks, the Expected Market Time for homes priced below $750,000 decreased from 73 to 70 days. This range represents 28% of the active inventory and 36% of demand.
- The Expected Market Time for homes priced between $750,000 and $1 million decreased from 70 to 67 days. This range represents 19% of the active inventory and 26% of demand.
- The Expected Market Time for homes priced between $1 million and $1.5 million remained unchanged at 82 days. This range represents 17% of the active inventory and 18% of demand.
- The Expected Market Time for homes priced between $1.5 million and $2 million increased from 100 to 103 days. This range represents 10% of the active inventory and 9% of demand.
- In the past two weeks, the Expected Market Time for homes priced between $2 million and $3 million increased from 155 to 171 days. The Expected Market Time for homes priced between $3 million and $4 million increased from 149 to 171 days. The Expected Market Time for homes priced between $4 million and $8 million increased from 270 to 325 days. The Expected Market Time for homes priced above $8 million increased from 724 to 733 days.
- The luxury end, all homes above $2 million, accounts for 26% of the inventory and 11% of demand.
- Distressed homes, both short sales and foreclosures combined, made up only 0.8% of all listings and 0.8% of demand. Only 55 foreclosures and 40 short sales are available to purchase today in all of Los Angeles County, with 95 total distressed homes on the active market, up six from two weeks ago. Last year, there were 65 total distressed homes on the market, slightly fewer than today.
- There were 3,237 closed residential resales in February, up 5% compared to February 2024’s 3,088 closed sales and up 5% from January 2025. The sales-to-list price ratio was 99.5% for all of Los Angeles County. Foreclosures accounted for just 0.4% of all closed sales, and short sales accounted for 0.2%. That means that 99.4% of all sales were good ol’ fashioned sellers with equity.
Whether you're thinking about buying your first home or upgrading to your next one, now is the time to plan ahead. Let’s chat about your goals and how to take advantage of today's market before the wave of competition returns.
