April 2025: Los Angeles Market Update

April 2025: Los Angeles Market Update

As we enter April 2025, the Los Angeles housing market continues to demonstrate resilience amid recent challenges. Sales activity has shown a modest increase, with the number of homes sold rising by 13.7% from February to March 2025, per the MLS. This uptick in sales may be attributed to displaced residents seeking new housing options and a stabilization in mortgage rates. Currently, the 30-year fixed mortgage rate stands at 6.63%, per Freddie Mac. The market remains competitive, with 41% of homes selling above the asking price.

In the aftermath of the January wildfires, significant progress has been made in recovery efforts. Phase 1 of the cleanup, focusing on the removal of hazardous household waste, was completed as of February 27, 2025, which allowed many displaced residents to make informed decisions regarding their properties. Phase 2, which involves the removal of structural debris, is currently underway, managed by the U.S. Army Corps of Engineers. Homeowners affected by the wildfires have been faced with the decision to rebuild or sell their properties. While some have chosen to rebuild, others are opting to sell, influenced by factors such as rebuilding costs, insurance coverage, and personal circumstances. The deadline to submit Right of Entry or Opt-Out forms for debris removal has been extended to April 15, 2025, providing homeowners additional time to make informed decisions.

Looking ahead, the Los Angeles housing market is expected to be influenced by ongoing recovery efforts, the decisions of wildfire-affected residents, and broader economic factors. While inventory remains tight and mortgage rates continue to stabilize, demand is anticipated to stay strong. However, recent federal tariff developments and their impact on the stock market may introduce some uncertainty, potentially influencing consumer confidence and investment behavior. Despite these headwinds, the California Association of Realtors maintains a positive outlook, forecasting a 10.5% rise in home sales for the year — a testament to the market’s resilience and the community’s commitment to rebuilding and long-term growth.

With so much uncertainty surrounding today’s economic landscape, we understand that navigating the real estate market can feel overwhelming. At Highland Premiere, our mission is to provide clarity, confidence, and care every step of the way. Whether you're buying, selling, or simply exploring your options, you can count on our dedicated team, the hardest working team in real estate, to guide you with integrity and personalized support.