Los Angeles Housing Market Shows Big Changes in Summer 2025: What Buyers and Sellers Need to Know

The Los Angeles real estate market is experiencing a major shift this summer, and it’s creating new opportunities for both buyers and sellers. Housing inventory has jumped dramatically in the first half of 2025, with Los Angeles County seeing a 5.7% increase in home sales compared to last month. This means more choices for buyers who have been waiting on the sidelines. At the same time, home prices in Southern California dipped for the first time in nearly two years, giving hope to first-time buyers and renters considering making the jump to homeownership. While mortgage rates remain above 6.5%, the increased inventory is helping to balance out the market after years of limited options. For sellers in Los Angeles, this changing market means it’s time to price homes realistically and make properties stand out. The days of multiple offers and bidding wars are becoming less common as buyers now have more homes to choose from. However, this doesn’t mean it’s a bad time to sell – it just means being strategic about pricing and presentation. First-time buyers and current renters should take advantage of this window of opportunity, as experts predict the market will continue to stabilize through the rest of 2025. With the city’s recent approval of nearly $425 million in mansion tax funding for affordable housing programs, there may be additional resources and incentives coming for qualified buyers. Whether you’re a first-time buyer tired of rising rents, a current homeowner looking to move up, or a seller considering your options, the Los Angeles market is offering more balanced conditions than we’ve seen in years. The key is working with experienced local professionals who understand these shifting trends and can help you navigate the opportunities available right now. Don’t wait for perfect conditions – the current market dynamics in LA are creating real chances for buyers to find their dream home and sellers to make successful moves.