Los Angeles Housing Market Update: Summer 2025 Trends and What Buyers & Sellers Need to Know

The Los Angeles housing market in 2025 is experiencing a transformation. After years of record price growth and tight inventory, buyers and sellers are navigating a landscape with more choices, slower price increases, and shifting competition. If you’re searching for “Los Angeles housing market trends 2025” or “is it a good time to buy a house in LA,” here’s what you need to know.

Inventory Surge and Price Adjustments

Inventory has surged to its highest level since 2019, with over 13,600 active listings in May 2025. This is a 47% year-over-year increase, giving buyers more options and reducing the bidding wars that defined previous years. Sellers are responding by adjusting prices—over 20% of listings now see price cuts, the highest rate in eight years.

Home Prices Remain Stable

Despite the inventory increase, the median home price in Los Angeles is holding steady at around $970,969. Price growth has slowed to just 0.1% year-over-year, signaling a more balanced market. Homes are selling for about list price, and the average time on market is now 45 days, up from 39 days last year.

What Buyers Should Expect

With more homes for sale in Los Angeles, buyers have greater negotiating power. It’s easier to find homes with features like ADUs, modern upgrades, or desirable locations. However, mortgage rates remain above 6.5%, so affordability is still a concern. Buyers searching for “affordable homes in Los Angeles” or “best time to buy a house in LA” should act strategically—look for motivated sellers and be prepared to negotiate.

Advice for Sellers

Sellers must price homes competitively and invest in staging and minor upgrades. Homes that are move-in ready and well-presented are selling quickly, while outdated properties linger on the market. If you’re searching “how to sell my house fast in Los Angeles” or “home value estimator LA,” focus on recent comparable sales and be realistic about pricing.

Outlook for Summer 2025

The Los Angeles real estate market is more balanced than in recent years. Buyers have more choices, and sellers must adapt to increased competition. Whether you’re buying or selling, staying informed about local trends and working with an experienced agent is key to success.