Los Angeles Housing Market: Prices, Trends, Forecast 2025-2026

So, you're wondering about the current Los Angeles housing market trends? Well, here's the scoop: things are a bit of a mixed bag. While home prices are still generally up compared to last year, sales have eased slightly in March 2025. It's not quite a frenzy, but it's definitely not a standstill either. Let's dive into what's driving this and break it down so you can understand what's going on if you're looking to buy or sell a home in the City of Angels.

Current Los Angeles Housing Market Trends: What's Happening in 2025?

Home Sales

Across California, existing, single-family home sales totaled 277,030 in March 2025, on a seasonally adjusted annualized rate. While this number is up 4.9% from March 2024, it actually decreased 2.3% from February 2025. This tells us that even though things are improving year-over-year, there was a bit of a dip recently, probably attributable to prospective buyers and sellers anticipating what the market will do during the spring months. I think this shows that the market is still sensitive to economic factors and consumer confidence, which I'll touch on later.

Here's a look at how the Los Angeles Metro Area specifically performed:

• Sales in the Los Angeles Metro Area went up 23.5% from February 2025.
• Year over year the sales for Los Angeles Metro area saw an increase of 0.6%.

Home Prices

Alright, let's talk about the money. The median home price in California in March 2025 was $884,350. That's a 6.7% increase from February and a 3.5% bump from March 2024. So, prices are still climbing, but the pace might be slowing down a little, which can be attributed to factors like fluctuating mortgage rates and economic uncertainty.

Los Angeles County specifically saw the following in March 2025:

• The median sold price for an existing single-family home in Los Angeles was $829,260.
• Compared to February ($852,190), that's a decrease of 2.7%.
• Year-over-year, that's an increase of 3.0% from March 2024 ($805,100).

Are Home Prices Dropping?

While the statewide numbers show an increase, the slight dip in Los Angeles County's median price from February to March might make you wonder if prices are about to fall. It's tough to say for sure. One month doesn't make a trend. However, it is possible we could see prices level off or even experience slight declines in some areas, particularly if mortgage rates remain high.

As the famous saying goes in real estate, “Location, Location, Location” and that is especially true in a large and diverse market like the LA metro area. Some areas, like the beach cities or trendy neighborhoods, may still see strong price growth, while others might cool off.

Comparison with Current National Median Price

Now, let's put things in perspective. The national median home price in February 2025 was $398,400, showing a year-over-year change of +3.8%. As you can see, the California median price is significantly higher than the national average. This isn't surprising, given California's desirable climate, strong economy (especially in certain sectors), and limited housing supply. However, this also means that affordability is a major concern for many prospective buyers in the Los Angeles housing market.

Housing Supply

The number of homes available for sale, often called “inventory,” plays a big role in market dynamics. In March, the Unsold Inventory Index (UII) in California was 3.5 months. This means that at the current sales rate, it would take 3.5 months to sell all the homes currently on the market. That's down from 4.0 months in February but up from 2.6 months in March 2024.

The good news for buyers is that the housing supply is increasing compared to last year. Active listings are up, giving buyers more choices and potentially reducing competition. I think this is a key factor to watch in the coming months. If inventory continues to rise, it could put downward pressure on prices.

Unsold Inventory Index for Los Angeles Metro Area

• March 2025: 3.7
• Feb 2025: 4.3
• March 2024: 2.7

Is LA a Buyer's or Seller's Housing Market?

This is the million-dollar question! A “buyer's market” generally means there are more homes for sale than buyers, giving buyers more negotiating power. A “seller's market” is the opposite, with more buyers than homes, giving sellers the upper hand.

Based on the data, LA is really more of a balanced market right now, or perhaps slightly leaning towards buyers. While prices are still up year-over-year, the increasing inventory and slight dip in sales suggest that buyers have a bit more leverage than they did a year ago. However, with mortgage rates remaining high, buyers should remain cautious and not overextend themselves.

Market Trends

Here's a summary of the key trends I'm seeing in the Los Angeles housing market:

• Moderating Sales: Sales activity is still positive year-over-year but has slowed down compared to earlier in the year.
• Price Appreciation: Home prices continue to rise, but the pace of increase may be moderating, especially in some areas.
• Increased Inventory: The number of homes for sale is growing, giving buyers more options.
• Balanced Market: The market is shifting towards a more balanced state, giving buyers slightly more negotiating power.
• Days on Market: Homes are taking a bit longer to sell than they were a year ago, with the median time on market in California being 22 days in March, up from 18 days in March 2024.

Impact of High Mortgage Rates

Let's not forget about mortgage rates! These rates have a huge impact on what people can afford. Currently, in April 2025, the average 30-year fixed mortgage rate is around 6.83%, and the 15-year fixed rate is about 6.03%, according to Freddie Mac.

These rates are significantly higher than what we saw a few years ago, making it more expensive to borrow money and buy a home. While rates have come down from their peaks, many expect them to remain elevated for the foreseeable future.

Table: Key Los Angeles Housing Market Indicators (March 2025)

Indicator	Value	Change from Feb 2025	Change from Mar 2024
Median Home Price (LA County)	$829,260	-2.7%	+3.0%
Sales (Los Angeles Metro Area)	+23.5%	N/A	+0.6%
Unsold Inventory Index (LA Metro)	3.7	-0.6	+1.0

My Two Cents

Here's my take based on my experience in the real estate world:

• Buyers: Don't panic! The market isn't crashing, but you have more options and a little more time to make a decision. Shop around for the best mortgage rates, get pre-approved, and don't be afraid to negotiate.
• Sellers: Be realistic about pricing. Overpricing your home could lead to it sitting on the market for longer. Work with your agent to determine a competitive price based on current market conditions.
• Everyone: Pay attention to the economic news. Factors like inflation, interest rates, and job growth can all impact the housing market.

Los Angeles Housing Market Forecast: What to Expect in 2025 and Beyond

Thinking about buying or selling in the City of Angels? You're probably wondering what the future holds for the Los Angeles housing market. Here's the bottom line: While a dramatic crash isn't anticipated, expect moderate fluctuations. Zillow's latest forecast predicts a slight dip in the short term, followed by a modest increase over the next year. So, let's dive deeper into the specifics of the Los Angeles housing market forecast and what it means for you.

Currently, the average home value in the Los Angeles-Long Beach-Anaheim area is $971,996, showing a 4.4% increase over the past year. Homes are going pending in around 24 days, indicating a still-competitive market, though perhaps not as frenzied as we've seen in recent years.

A Closer Look at Zillow's Forecast: 2025-2026

To get a more granular view, let's break down Zillow's latest MSA (Metropolitan Statistical Area) forecast, focusing on Los Angeles. Remember that these are predictions, and the housing market can be influenced by many factors, but they provide a reasonable basis for our expectations.

Region Name	Base Date	March 2025 Change	May 2025 Change	1-Year Forecast (Feb 2025 – Feb 2026)
Los Angeles, CA	Feb 28, 2025	-0.2%	-0.1%	0.4%

• March 2025: The forecast suggests a slight decrease of 0.2% in home values. This could be due to seasonal factors or a slight cooling of demand.
• May 2025: Another minor dip is anticipated, with a decrease of 0.1%. These short-term fluctuations are normal and shouldn't necessarily be a cause for alarm.
• February 2026 (1-Year Forecast): The overall prediction for the year is a modest increase of 0.4%. This indicates a generally stable market with slow but steady growth.

How Does Los Angeles Stack Up Against Other California Markets?

It's helpful to see how the Los Angeles forecast compares to other major metropolitan areas in California. Here’s a quick look:

Region Name	March 2025 Change	May 2025 Change	1-Year Forecast (Feb 2025 – Feb 2026)
San Francisco	0%	0.1%	-2.1%
Riverside	0%	0.5%	1.7%
San Diego	-0.1%	0.2%	1.7%
Sacramento	-0.1%	0.1%	-0.7%
San Jose	-0.8%	-2.7%	-2.9%
Fresno	0.1%	0.5%	1%
Bakersfield	0.2%	0.9%	2.3%

As you can see, the Los Angeles housing market forecast is relatively moderate compared to some other areas. San Jose and San Francisco, for example, are predicted to see more significant declines over the next year. Riverside, San Diego, Fresno and Bakersfield are expected to outperform Los Angeles, and grow faster.

Will Home Prices Drop Significantly in Los Angeles? Could a Housing Crash Happen?

Based on current data and expert analyses, a major housing crash in Los Angeles seems unlikely. While prices might experience slight dips, the overall trend points towards continued stability and moderate growth. Several factors support this:

• High Demand: Los Angeles remains a desirable place to live, with strong demand driven by job opportunities, cultural attractions, and a desirable climate.
• Limited Inventory: The supply of homes in Los Angeles is still relatively constrained, which helps to support prices.
• Solid Economy: Despite some economic uncertainties, the Los Angeles economy is generally robust, with key sectors like entertainment, technology, and tourism driving growth.

Of course, unforeseen events could always impact the market. Interest rate changes, economic downturns, or major policy shifts could all influence home prices. However, at this point, a catastrophic drop seems improbable.

My Thoughts on the 2026 Outlook

Looking ahead to 2026, it's difficult to provide a definitive forecast without concrete data. However, if the trends observed in the current forecasts continue, I anticipate the Los Angeles housing market will likely see moderate, single-digit growth. Factors like interest rates and overall economic conditions will play a crucial role. If interest rates remain stable or decrease slightly, we could see a more robust increase in home values. Conversely, a significant economic slowdown could dampen growth.

Should You Invest in the Los Angeles Real Estate Market in 2025?