Los Angeles, CA
Housing Market
Los Angeles' housing market is dynamic, with home prices and demand constantly shifting. Houzeo's housing market report monitors these fluctuations, providing real-time insights into Los Angeles' supply and demand trends. Our report equips you with the information you require to make well-informed decisions.
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Buy or SellLos Angeles Housing Market Overview
The Los Angeles real estate market has shown increased competition in recent months. The median home price has increased by 9% YoY to reach $1.06M. Los Angeles houses stay on the market for an average of 67 days before going under contract, up by 18 days from this time last year. Additionally, 1,339 homes have sold this month, which is an increase of 3.8% from last year. This kind of upward momentum in the market signals opportunities for both buyers and sellers.
LA's real estate market remains a key driver of California's economy. The city has experienced steady home price appreciation over the years. But the housing market in Los Angeles is currently going through a great shift, in part due to the wildfires in January 2025. The upward trend in demand and mortgage rates, along with the more or less stagnant inventory, makes the market more competitive. On the flip side, buyers have a wide range of options to choose from, whether it's single-family homes or luxury apartments.
LA's real estate market remains a key driver of California's economy. The city has experienced steady home price appreciation over the years. But the housing market in Los Angeles is currently going through a great shift, in part due to the wildfires in January 2025. The upward trend in demand and mortgage rates, along with the more or less stagnant inventory, makes the market more competitive. On the flip side, buyers have a wide range of options to choose from, whether it's single-family homes or luxury apartments.
Median Sale Price
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Los Angeles
Los Angeles Housing Supply
Los Angeles is a hot market for real estate investors, thanks to its steadily growing property value. As the epicenter of the entertainment industry, LA's influx of population drives its housing supply and demand. The number of homes for sale in Los Angeles has increased to 1,337, a 3.8% YoY rise. This increase in Los Angeles housing inventory means buyers will have more options. However, the Los Angeles housing supply currently stands at only 2.9 months citywide, which indicates a highly competitive market.
Los Angeles' housing supply changes according to the season and migration trends. The market sees a surge in home listings during spring and summer. Both sellers and buyers are active in this period, as they want to close before the school year starts or winter sets in. At this time of the year, home prices are thrice the national median due to the high inflow of residents. As a result, buyers are likely to face high competition across neighborhoods. So, acting decisively is key.
Los Angeles' housing supply changes according to the season and migration trends. The market sees a surge in home listings during spring and summer. Both sellers and buyers are active in this period, as they want to close before the school year starts or winter sets in. At this time of the year, home prices are thrice the national median due to the high inflow of residents. As a result, buyers are likely to face high competition across neighborhoods. So, acting decisively is key.
# of Homes for Sale
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Los Angeles
Los Angeles Housing Demand
The Los Angeles real estate market is moderately competitive, with 35.2% of homes selling above their list price. Meanwhile, 27.4% of homes have seen price drops, and the she sale-to-list price ratio has reached 99.5%. This means that sellers now get almost exactly the price they set for properties. This ratio essentially determines which party will have better negotiation power in the market.
As a home seller, if you initially price your house accurately, you can avoid the need for any future price reductions. You can also offer concessions to buyers if you want to sell your home quickly. Moreover, if you list your home on the California MLS, you can find buyers quickly. When the sale-to-list price ratio is around 100% and demand is high, expect to get multiple offers from buyers. If you're a buyer, you should focus on houses with extended listing periods for more negotiation opportunities. Properties with previous price reductions can also give you increased leverage.
As a home seller, if you initially price your house accurately, you can avoid the need for any future price reductions. You can also offer concessions to buyers if you want to sell your home quickly. Moreover, if you list your home on the California MLS, you can find buyers quickly. When the sale-to-list price ratio is around 100% and demand is high, expect to get multiple offers from buyers. If you're a buyer, you should focus on houses with extended listing periods for more negotiation opportunities. Properties with previous price reductions can also give you increased leverage.
Homes Sold Above List Price
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Los Angeles
Strong
Buyer
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Balanced
Seller
Strong
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Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Los Angeles Housing Market: When to Buy or Sell?
Los Angeles' housing market favors both buyers and sellers, and like the California housing market, it's highly competitive. When competition is low alongside increased inventory, buyers will have more negotiation opportunities. On the other hand, sellers stand to benefit from higher prices and quicker sales during periods when demand outpaces supply.
Moreover, if the months of Los Angeles' housing supply rise above the balanced conditions of the US real estate market (5 to 6 months), it gives buyers more time to consider their options. Sellers typically receive multiple offers on their homes when the months of supply are around 2-3 months. Knowledge of these market forces can help you decide the best times to buy or sell a house.
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Frequently Asked Questions
How have home prices in Los Angeles changed over the past year?
Over the past years, the median home price in Los Angeles has continued to rise at an average growth rate of 5% to 13%, with multiple regions seeing double-digit percentage growth. You can check your home's fair market value with our free home value estimator to decide on your initial asking price and compare it with other properties in your area.
What's the Los Angeles housing market forecast for 2025?
Los Angeles house prices typically see growth at a rate between 5% to 13%, and have remained upward of $1M since April 2024. Housing demand in LA is always on the rise, unlike some other cities in California. But high prices and rising mortgage rates may make it difficult to find affordable housing.
What's the average house price in Los Angeles?
The average home price in Los Angeles varies depending on the type, size, and local market conditions. It typically ranges from $740,000 for condos to $1,300,000 for single-family homes. You can also find cheap houses to buy in Los Angeles within your budget.
Is this a good time to buy a home in Los Angeles, CA?
First, assess Los Angeles real estate trends, from housing prices to inventory. This will help you understand whether it's a buyer's or seller's market. Sellers can benefit from high demand and rising prices. However, if the mortgage rates are stable, demand is low with plenty of housing inventory, it'll be the best time to buy homes in Los Angeles.
Where can I check Los Angeles housing market trends?
Inventory and competition in the Los Angeles housing market remains more or less stable all year round. Properties tend to stay on the market for about 50 to 70 days. If you want to invest in LA real estate, you can check the city's housing market trends to decide on the best time to act.
When will the Los Angeles housing market crash?
As per housing market forecasts, it's very unlikely that the market will crash. In fact, home prices will rise further during the summer months of June and July, with sustained growth projected through 2025. However, the expanding inventory may signal price reductions as supply outpaces demand.
How to buy a home in Los Angeles?
The steps to purchasing a house start with a clear budget and mortgage pre-approval. Buyers should then search for homes for sale in Los Angeles, submit offers, secure loans, and complete the closing process.
How can I list my home for sale in Los Angeles, CA?
You can list your Los Angeles home with a Flat Fee MLS California listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in Los Angeles?
The state-wide average mortgage rate for buyers fluctuates between 6.8% and 7%. It depends on the market and the borrower's credit score. Always check current rates with lenders before you apply.
How much does it cost to live in Los Angeles?
The cost of living in the Los Angeles area is 50% higher than the national average and 8% higher than the state average. Housing alone is 137% higher than the US median. The typical single-family home in Los Angeles costs $1.3M, with regional price variations. Necessities such as food, clothing, and groceries are around 12% higher than the national average.
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