October 2025: Los Angeles Market Update

October 2025: Los Angeles Market Update

As we enter October, the Los Angeles housing market reflects both resilience and restraint. September’s data showed the median home price rose to $1,267,000, while the average days on market increased to 41 days, per the MLS. This combination points to a market where values remain supported, but buyers are moving more carefully, taking time to weigh affordability and financing before making decisions.

Importantly, inventory levels seemed to have stabilized from August 2025 to September 2025. A balanced supply environment gives buyers a wider range of options than in recent years, while also requiring sellers to be more precise in pricing and presentation. In a market where homes are sitting longer, standing out has become essential.

Furthermore, mortgage conditions remain a central factor. In September, the Federal Reserve cut its benchmark rate in an effort to support economic growth, a move that often signals potential easing for borrowers. Yet mortgage rates moved in the opposite direction, with the 30-year fixed mortgage rising the past two weeks to 6.34% per Freddie Mac after two months of steady declines. This divergence reflects that mortgage rates are shaped less by the Fed’s short-term decisions and more by broader forces such as inflation expectations and bond yields. As a result, buyers and sellers should not anticipate borrowing costs to decline in a straight line, even with the Fed’s recent policy shift, and should expect mortgage rates to remain volatile through the fall season.

Even with these headwinds, Los Angeles stands apart from national trends. Limited supply, strong employment, and the enduring appeal of its core neighborhoods continue to support pricing power, even as the market slows in tempo. Entering the fall and holiday season, activity is expected to remain measured, with fewer but more motivated buyers and sellers navigating opportunities with greater strategy.

At Highland Premiere, we view these conditions as a call for clarity and preparation. In a market defined by nuance, careful guidance and local expertise remain the difference between hesitation and success.