July 2025: Los Angeles Market Update

July 2025: Los Angeles Market Update

As we enter July, the Los Angeles housing market continues to strike a careful equilibrium amid cautious buyer sentiment and evolving inventory dynamics. Median sold home prices rose 3.8% year-over-year in June, per the MLS, as the Los Angeles real estate market transitioned from a sellers’ environment last summer to a more neutral stance this June.

Amid continued mortgage rate volatility and broader economic uncertainty, the market has cooled from the frenzied pace of the pandemic-era boom. Inventory levels have climbed steadily with active listings expanded by 9.0% from May to June, per the MLS. With increased inventory and a more deliberate pace of activity, buyers now have greater leverage and more opportunity to negotiate, though tightening affordability remains a defining constraint. Concurrently, sales volume dipped 8.3% from May to June. Despite slower turnover, 61% of homes sold within 30 days, suggesting a split between swift, high-demand listings and slower-moving mid-tier properties.

Mortgage rates continue to shape affordability. Freddie Mac reports the 30‑year fixed rate averaged about 6.77% as of June 26, a modest decrease from prior weeks and the lowest level since early May. While this provides a slight reprieve, rates are still significantly above pre‑2022 norms, keeping monthly payments elevated for many buyers.

Despite signs of cooling, the market remains mixed. In June, over 46% of homes in Los Angeles sold below asking price, indicating that many buyers are gaining leverage in negotiations, particularly in mid-tier and price-sensitive segments. However, well-priced homes in highly sought-after neighborhoods continue to attract strong interest and multiple offers, underscoring the divide between high-demand areas and slower-moving parts of the market.

Looking ahead, Los Angeles is expected to reflect local dynamics more than national trends, driven by mortgage rate movements, new listing volume, and regional affordability pressures. At Highland Premiere, we’ve observed a steady cadence of late-June activity, including multiple successful closings and continued listing momentum across key neighborhoods. These results reflect a mid-summer market that remains active, yet increasingly price-conscious and strategically paced.

At Highland Premiere, we understand that meaningful guidance goes beyond market statistics. In today’s ever-changing landscape, experience, perspective, and thoughtful communication are more important than ever. Whether you're considering your next move or evaluating the right time to enter the market, our team is here to provide expert insight and unwavering support, tailored to your goals, every step of the way.