Los Angeles Housing Market: Trends and Forecast 2025-2026

The recent Los Angeles housing market trends show that it's experiencing a slight uptick in sales volume and a stabilization in home prices, with inventory levels remaining a key factor influencing the pace of transactions.

Recently, data from the California Association of REALTORS® (C.A.R.) has given us a clearer picture of where things stand. Let’s dive into what this means for Los Angeles County and the broader Los Angeles Metro Area.

Los Angeles Housing Market Trends in 2025

Home Sales: A Gradual Climb

Good news for those who thought the market had stalled: home sales across California, including our beloved Los Angeles area, have been showing signs of life. In November, existing single-family home sales in California reached their highest point since September 2022. This is a significant indicator that the market is slowly but surely regaining momentum.

For the Los Angeles Metro Area, the numbers from C.A.R. paint a specific picture. While the broader California market saw a 2.6% increase in sales year-over-year in November, the Los Angeles Metro Area’s sales volume actually experienced a slight dip of -2.7% compared to the previous year, settling at a seasonally adjusted annualized rate of 36.0 days on market. This might seem counterintuitive to the statewide trend, but it's important to remember that local markets can have their own unique rhythms.

However, looking at the broader context of Los Angeles County, where specific sales numbers aren't broken out separately from the Metro Area in this report, the overall sentiment for Southern California as a region was a sales decline of -3.1%. This highlights the nuances – while some pockets might be booming, others are experiencing slower activity.

My take on this? It suggests that we’re not in a runaway seller’s market, but instead, we’re seeing a more balanced approach. Buyers are still out there, and sellers who are realistic about pricing are finding success. The slight increase statewide is encouraging, and I'm optimistic that this positive momentum will continue to trickle down more robustly into all LA neighborhoods.

Home Prices: Holding Steady

One of the biggest concerns for many is home price fluctuation. The good news here is that after a bit of a dip from October to November across California (-3.9%), the statewide median home price was essentially flat year-over-year in November, sitting at $852,680. This stability is a welcome sign for both buyers and sellers.

In the Los Angeles Metro Area, the median home price in November was $823,000. This is a near-perfect stabilization from November of the previous year, showing a mere 0.1% increase. This level of stability is actually quite healthy. It means we're not seeing wild price swings that can make budgeting and financial planning difficult.

Digging into Los Angeles County specifically, the data shows a 0.6% increase in the median home price year-over-year, bringing it to $942,610. This is a slightly stronger showing than the metro area average, indicating that the county as a whole is holding its value well.

This trend of price stabilization is something I’ve been anticipating. With interest rates cooling somewhat and buyers becoming more confident, demand is supporting prices. It’s not the frenzied appreciation of a few years ago, but a more sustainable growth that’s good for the long-term health of the market.

Housing Supply: A Crucial Factor

The amount of housing available – often referred to as inventory – is a major driver of market dynamics. Across California, housing inventory rose in November from both the previous month and the previous year. The Unsold Inventory Index (which measures how many months it would take to sell all existing homes on the market) climbed to 3.6 months statewide. This indicates a modest increase in the number of homes available for sale.

For the Los Angeles Metro Area, the Unsold Inventory Index stood at 3.9 months in November. This is a slight increase from 3.4 months in October and 3.6 months in November of the prior year. This indicates a balanced market, leaning slightly towards buyers having a bit more choice.

Looking at Los Angeles County, the inventory situation is similar, with the data suggesting it’s also in a balanced territory. This means that while homes are still selling, they’re not disappearing off the market overnight. This greater availability can empower buyers to be more selective and negotiate more effectively.

From my perspective, this increase in supply is a positive development. It helps to temper price increases and gives more people a chance to find the home they're looking for. It’s not an oversupply, which would signal a buyer’s market, but a healthy increase that’s moving us away from the extreme seller's advantage we saw previously.

Time on Market: Homes Taking a Little Longer to Sell

As inventory increases and prices stabilize, it's natural for homes to take a bit longer to sell. Statewide, the median time a home spent on the market in November was 32 days, up from 26 days in November of the previous year. This indicates that buyers have a little more time to consider their options.

In the Los Angeles Metro Area, homes averaged 36 days on the market in November. This is an increase from 37 days in October, but notably, it’s up from 29 days in November of the previous year. This slight increase in selling time is a direct consequence of having more inventory and a market that's less intensely competitive than it was a year ago.

For Los Angeles County as a whole, the trend holds, with homes taking a bit longer to find their buyers. This is a healthy adjustment, moving away from the hyper-speed sales that were becoming the norm. It allows for more thorough inspections, thoughtful decision-making, and a less stressful process for everyone involved.

Seller's or Buyer's Market? Leaning Towards Balance

So, what does all this data tell us about whether it's a seller's or buyer's market? Based on the latest trends, I’d describe the Los Angeles housing market as being in a state of transition towards a more balanced market, with some areas leaning slightly more towards buyer advantage.

• Sales Volume: The overall increase in sales statewide is positive for sellers, indicating demand.
• Home Prices: Price stabilization is great for both. Buyers aren't facing runaway costs, and sellers are seeing their investments hold firm.
• Housing Supply: The increase in inventory levels is the most significant indicator of a shift towards balance. More homes available mean buyers have more choices and less pressure to make impulsive decisions.
• Time on Market: Homes taking longer to sell clearly indicates that the intense bidding wars of the past are subsiding, giving buyers more breathing room.

The sales-price-to-list-price ratio also offers insight. Statewide, this ratio was 98.3% in November 2025, down from 99.4% in November 2024. This means that homes were selling slightly below their original asking price on average – another sign of a market that’s not heavily favoring sellers with multiple offers above asking.

My own experience tells me that while well-priced and well-presented homes in desirable locations will always move quickly, the days of expecting multiple massive overbids are becoming less common. Buyers are more informed and have more leverage than they did a year or two ago. Sellers need to be realistic with their pricing strategies from the outset.

Looking Ahead

The C.A.R. report also touched on future projections. With mortgage rates expected to decline gradually in 2026, but not drastically, we're likely to see mild to moderate growth in both home sales and prices over the next year. This suggests a continued steady market, rather than a boom or bust.

For Los Angeles, this means we’ll likely continue to see a market that’s highly desirable but also more accessible than it has been in recent years. It’s an exciting time for the region’s housing sector, and I’m keen to see how these trends continue to unfold.

Los Angeles Housing Market Forecast: Will Prices Rise or Fall?

You're probably wondering what's going to happen with prices. The Los Angeles housing market forecast suggests a slight decrease over the next year. While the national real estate market may pick up, Los Angeles specifically will likely see some downward pressure on home values. Let's dig into the details and see what factors are shaping the future of housing in LA.

Currently, the average home value in the Los Angeles-Long Beach-Anaheim area is $972,837. That's up about 1.1% from last year, which isn't a huge jump. Homes are going pending pretty quickly, in about 20 days. But, is this trend expected to continue?

According to Zillow's latest projections, here's what they see happening in the Los Angeles housing market over the next year:

Timeframe	Predicted Home Value Change
July 2025	-0.4%
September 2025	-0.9%
June 2025 to June 2026	-1.3%

Basically, Zillow anticipates a gradual cooling off. While it's not a crash, they believe values will edge down a bit.

How Does L.A. Compare To Other California Markets?

Okay, Los Angeles might see a slight dip. But what about other parts of California? Here's a quick look at how the forecast compares to other major metro areas using the same forecast data:

Region	Predicted Home Value Change (June 2025 – June 2026)
San Francisco, CA	-6.1%
San Diego, CA	-1.5%
Riverside, CA	-0.9%
Sacramento, CA	-3.7%
San Jose, CA	-4.0%
Fresno, CA	-1.2%
Bakersfield, CA	-0.1%
Los Angeles, CA	-1.3%

As you can see, Los Angeles' forecasted decline is less than some other California cities, but still a bit downward.

What About the National Picture?

While the Los Angeles housing market faces a slight correction, the national outlook, according to the National Association of Realtors (NAR), is more positive. Their Chief Economist, Lawrence Yun, thinks “brighter days may be on the horizon.” Here's what he's predicting:

• Existing home sales are expected to rise by 6% in 2025 and 11% in 2026.
• New home sales are projected to climb by 10% in 2025 and another 5% in 2026.
• Median home prices are forecasted to continue increasing modestly, with a rise of 3% in 2025 and 4% in 2026.
• Mortgage rates are anticipated to average 6.4% in the second half of 2025 and dip further to 6.1% in 2026.

He considers lower mortgage rates the “magic bullet” for boosting the market.

Will Home Prices Crash in Los Angeles?

Based on these forecasts, a crash seems unlikely. While there seems to be a real estate market slowdown and a price correction, a significant crash seems unlikely. The Los Angeles market is still competitive, and demand remains relatively strong. A slight dip in prices could even be a good thing, making homes more affordable for potential buyers.

Looking Ahead to 2026

Predicting beyond a year is always tricky, but if the NAR's predictions hold true, the Los Angeles housing market could see a slight recovery in 2026. With potentially lower mortgage rates and a growing national market, LA could mirror this trend, evening out back around where it is now. However, local economic conditions and housing supply will play a significant role. It's best to keep an eye on the data and consult with a real estate professional for the most up-to-date advice.

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