Los Angeles Housing Market Is Cooling: Why Buyers Suddenly Have the Upper Hand

Raffucci
Aug 5
3 min read

If you’ve been watching the Los Angeles real estate market and feeling priced out, there’s some good news: things are changing—fast. After years of bidding wars and offers way over list price, the market has started to cool down. For the first time in a while, many sellers are accepting offers below what they originally asked for. Here’s what’s happening and why it matters if you’re thinking about buying a home.

Sellers Are Coming Down on Price

This summer marks a big shift. Back in April, nearly half of all homes in Los Angeles sold for more than the seller’s asking price. By June, the opposite was true—about 46 percent of homes sold for less than asking. That’s a massive change in just two months.

Redfin’s data shows something similar: on average, homes in L.A. now close at about 1 percent below list price. That might not sound like much, but it’s a big deal when you’re talking about million‑dollar homes. Only about one‑third of properties still go above list price, and more than 80 percent of listings are seeing price drops.

More Choice and Less Frenzy

One reason sellers are more flexible is that there are more homes to choose from. Inventory has grown by roughly 9 percent since May, giving buyers more options. At the same time, the number of homes changing hands has dipped—sales volume fell about 8 percent from May to June. In simple terms: there are more houses sitting on the market and fewer buyers fighting over each one.

Homes are also taking a bit longer to sell. The typical L.A. house now spends about 48 days on the market, up from 40 days a year ago. About 61 percent of homes still sell within 30 days, especially if they’re well‑priced and move‑in ready, but it’s no longer the lightning‑fast pace we saw during the pandemic boom.

Prices Are Leveling Off

Prices haven’t collapsed, but they’re growing more slowly. The median sale price in Los Angeles is around $1.125 million, up a modest 2.4 percent from a year earlier. Highland Premiere’s July report notes that the median sold price rose 3.8 percent year over year in June—a far cry from the double‑digit spikes of recent years.

In fact, some trendy neighborhoods even saw slight price declines. In high‑end areas like Brentwood, the median listing price hovers around $3.5 million, but inventory has surged nearly 47 percent, and more than half of recent sales closed below asking. Even affluent sellers are conceding to buyers, signalling a broader market slowdown.

What About Mortgage Rates?

Rates are still higher than a couple of years ago but have eased a bit. The 30‑year fixed mortgage hovered around 6.77 percent at the end of June. That’s slightly lower than earlier this spring and could drop further if inflation cools. Even at current levels, many buyers are choosing to negotiate a lower purchase price today and plan to refinance later if rates fall.

Why This Is Good News for Buyers

You Can Negotiate – Nearly half of sellers are accepting offers below asking. That means you have room to negotiate on price and possibly on repairs or contingencies.
More Options – With inventory rising, you’re less likely to face a bidding war. You can take the time to compare neighborhoods and find the right fit.
Prices Aren’t Soaring – Modest price growth and frequent price drops mean you’re less likely to overpay. Some areas are even seeing slight declines.
Long‑Term Value – Los Angeles real estate has historically been a solid investment. Buying when the market cools can position you for future appreciation, especially if you refinance when rates eventually come down.

Bottom Line

The L.A. market is no longer the runaway seller’s paradise it was during the pandemic. With prices stabilizing, inventory up and many homes selling under list price, buyers have more power than they’ve had in years. If you’ve been waiting on the sidelines, this could be your moment to get into a home in Los Angeles on more favorable terms.

For personalized guidance on neighborhoods, pricing and negotiation strategies, reach out to Ask Raffucci. We’re here to help you navigate this changing market and find the

right home at the right price.

Sources

Redfin – Los Angeles Housing Market data on sale-to-list ratios, days on market, median sale price and share of homes sold above list.
Highland Premiere – May, June and July 2025 Los Angeles market updates summarizing changes in inventory, sales volume and the share of homes selling above or below asking.
Mary Lu Tuthill – Brentwood real estate trends showing high-end inventory growth and share of sales below list price.
First Tuesday Journal – Statewide sales volume trends and discussion of California’s real estate recession.