Housing in Los Angeles: features of the local market
Housing prices in Los Angeles increased in the first quarter of 2025. At the same time, sales volumes declined. In general, the market is experiencing a downturn due to economic instability.
According to data from March 2025, there were over 277,000 property sales in California. This represents a 2.3% decrease from February. However, this figure is almost 5% higher than in the same period in 2024.
As for Los Angeles, the situation is as follows:
– over the month, sales increased by about 24%;
– the median home price in and around the city is US$829,260;
– prices fell 2.7% for the month;
– year-over-year values are up 3%.
Price dynamics in Los Angeles have been uneven. In popular areas of the metropolis and the beach suburbs, prices continue to rise. At the same time, there has been a decline in less sought-after locations. Experts believe that prices should stabilise by the end of the year. However, this will only be possible if mortgage rates remain at their current level.
Housing trends overview
The volume of supply remains the key factor affecting the market. In Los Angeles, as in the rest of California, the number of properties for sale is increasing. This trend favours buyers, who have a wide range of options to choose from. At the same time, competition in the market is decreasing, which affects pricing policies. If the supply rises further, we can expect property prices to fall.
Overall, the Los Angeles property market is balanced. There is high demand and a variety of supply. Since the beginning of the year, buyers have had more opportunities and advantages. This is because the number of properties for sale has grown, while the total number of completed transactions has fallen. However, buyer dominance is still some way off as long as mortgage rates remain high.
Credit conditions have a significant impact on the US housing market. The average fixed rate for a 30-year mortgage is currently around 6.8%. For a 15-year loan, the rate is 6%. These rates have risen significantly from previous years, making home ownership less affordable. Even if rates were to decrease slightly, they would remain relatively high in the near term.
Market forecast
Experts are predicting a volatile but manageable situation in the Los Angeles property market. Sharp collapses or surges in prices are not expected. Analysts at Zillow forecast that the market may face a moderate decline in housing costs until the end of 2025. However, they predict a return to price growth in 2026.