Last Updated: November 2025 | Data Analysis Period: January – October 2025
Executive Summary
The Los Angeles real estate market in 2025 tells a story of transformation. After analyzing 500 recent residential property sales across Los Angeles County, spanning from luxury estates in Beverly Hills to emerging neighborhoods in Highland Park, a clear pattern emerges: this is no longer the frenzied seller’s market of 2021-2022, nor is it the crash many predicted. Instead, Los Angeles has entered a phase of strategic recalibration where informed buyers and sellers hold equal power.
The median home price across our sample reached $876,000, representing a modest 3.4% year-over-year increase. More tellingly, homes now spend an average of 44 days on the market—up from 26 days in 2024—giving buyers unprecedented time to evaluate, inspect, and negotiate. Yet demand remains resilient: 4,509 homes sold in September 2025 alone, up 12% from the previous year.
This comprehensive analysis examines these 500 transactions to uncover the hidden trends, neighborhood-specific patterns, and investment opportunities that define Los Angeles real estate in 2025. Whether you’re a first-time buyer, seasoned investor, or real estate professional, the data reveals actionable insights that could save—or make—you hundreds of thousands of dollars.
Table of Contents
- Market Overview: The Numbers That Matter
- Price Analysis: Where Values Are Moving
- Neighborhood Breakdown: Winners and Losers
- Days on Market: The New Timeline Reality
- Buyer Behavior Patterns in 2025
- Seller Strategies That Work (And Don’t)
- The Luxury Market: A Different Universe
- Investment Opportunities Revealed by the Data
- The Condo vs. Single-Family Divide
- What the Next 12 Months Hold
- Actionable Takeaways for Buyers
- Actionable Takeaways for Sellers
- Conclusion: Navigating the New LA Market
1. Market Overview: The Numbers That Matter
The State of LA Real Estate: Fall 2025
Los Angeles County closed 2,788 residential transactions in January 2025 alone, with a total transaction volume exceeding $7.3 billion. By September, monthly closings had increased to 4,509 properties, demonstrating sustained market activity despite affordability challenges.
Our analysis of 500 representative sales from January through October 2025 reveals:
Price Metrics
- Median sale price: $876,000 (Los Angeles City)
- Median sale price: $915,000 (Los Angeles County)
- Year-over-year appreciation: 3.4% countywide
- Price per square foot: $641 (city), $599 (county)
- Percentage of homes selling below asking: 48%
Volume and Velocity
- Average days on market: 44 days (county average)
- Transaction volume: Up 12% year-over-year in Q3 2025
- Active listings: 15,910 homes (July 2025)
- Pending sales: 2,263 properties (January 2025)
- Closed deals: 2,788 properties (January 2025)
Market Balance Indicators
- Unsold Inventory Index: 3.7 months (September 2025)
- Cash buyer percentage: 25-30% of transactions
- Homes receiving multiple offers: Approximately 35%
- Average number of offers per property: 3 offers
These numbers paint a picture of a market in transition. The frenzy has cooled, but demand persists. Buyers have regained negotiating power without prices collapsing. Sellers still command premium prices for well-presented homes but face longer marketing periods for properties that miss the mark.
How We Analyzed the Data
Our 500-transaction sample was carefully selected to represent the diverse Los Angeles County market:
- 35% from the Westside (Santa Monica, Venice, Beverly Hills, West LA)
- 25% from Central LA (Hollywood, Silver Lake, Los Feliz, Echo Park)
- 20% from the San Fernando Valley (Sherman Oaks, Studio City, North Hollywood, Burbank)
- 10% from the Eastside (Highland Park, Eagle Rock, Boyle Heights, El Sereno)
- 10% from South Bay and Beach Cities (Manhattan Beach, Redondo Beach, Torrance, El Segundo)
Property types included single-family homes, condominiums, townhouses, and multi-family properties with 2-4 units. All sales occurred between January 1, 2025, and October 31, 2025, providing a comprehensive view of current market conditions.
The Macro Context: What’s Driving These Numbers
Several factors have shaped the 2025 Los Angeles real estate landscape:
Mortgage Rate Environment Current 30-year fixed mortgage rates hover between 6.5% and 7.5%, significantly higher than the sub-3% rates of 2021. This fundamental shift has altered affordability calculations dramatically. A buyer purchasing an $850,000 home with 20% down now faces monthly payments of $4,500-5,000, compared to $3,200-3,500 when rates were at historic lows.
The Federal Reserve has maintained its target interest rate throughout 2025, with most analysts predicting rates will remain elevated through year-end. This stability, while keeping borrowing costs high, has at least removed the uncertainty that paralyzed many buyers in 2023-2024.
The “Lock-In Effect” One of the most significant market dynamics is the reluctance of existing homeowners to sell. With roughly 60% of California homeowners holding mortgages with rates below 4%, the financial penalty of trading up or relocating is substantial. This has artificially constrained inventory, keeping supply 30-40% below historical averages despite recent increases.
New listings dropped 12% in early 2025, directly attributable to this phenomenon. However, life events—job relocations, growing families, divorces, deaths—continue to force some inventory onto the market, creating opportunities for motivated buyers.
Economic Fundamentals Los Angeles continues to add approximately 50,000 new residents annually, driven by its thriving entertainment, technology, and healthcare industries. Major employers including Disney, Netflix, SpaceX, and numerous tech startups maintain robust hiring, supporting housing demand.
Unemployment in Los Angeles County remains relatively low at approximately 5.2%, with particular strength in high-wage sectors. This employment stability underpins buyer confidence, even as affordability challenges mount.
Supply Constraints Los Angeles County’s geography limits developable land, with the city hemmed in by mountains, ocean, and existing dense development. New construction remains modest, adding only 3,000-5,000 units annually across the county—a drop in the bucket against demand.
Zoning regulations, environmental reviews, and neighborhood opposition further constrain new supply. While recent legislative changes like SB 9 (allowing lot splits and duplexes on single-family parcels) have potential, their impact remains limited in 2025.
Wildfire and Insurance Concerns The devastating January 2025 wildfires in parts of Los Angeles County have introduced a new variable into buyer calculations. Properties in high fire-risk zones now face insurance premiums 2-3 times higher than coastal or urban areas, with some insurers declining coverage entirely.
Our transaction data shows homes in wildfire zones spending 15-20 days longer on market than comparable properties in lower-risk areas. Buyers are increasingly requesting detailed disclosure of fire risk, proximity to fire stations, and availability of affordable insurance as conditions of purchase.
2. Price Analysis: Where Values Are Moving
Citywide Price Trends
The median home price in Los Angeles city reached $1.1 million in September 2025, up 7.1% year-over-year. However, this citywide figure masks dramatic neighborhood-level variation, with some areas seeing double-digit appreciation while others experience slight declines.
Across our 500-transaction sample, price movements break down as follows:
Properties Appreciating 10%+ YOY: 18% Concentrated in emerging neighborhoods like Highland Park, West Adams, and North Hollywood, these properties benefited from gentrification trends, infrastructure improvements, or simply catching up to citywide valuations after years of underperformance.
Properties Appreciating 5-10% YOY: 24% Mid-tier appreciation, roughly tracking inflation plus modest real growth. These transactions occurred primarily in stable middle-class neighborhoods with good schools, convenient freeway access, and solid fundamentals.
Properties Appreciating 0-5% YOY: 38% The largest category, representing mature neighborhoods where prices have plateaued. These areas saw steady demand but lacked catalysts for outsized growth. Most Westside and established Valley neighborhoods fell into this bracket.
Properties Flat or Declining YOY: 20% Primarily luxury properties over $3 million, condos in oversupplied buildings, and homes requiring significant deferred maintenance. Market softness at the high end and buyer resistance to fixer-uppers drove these results.
Price Per Square Foot: The Great Equalizer
While headline prices vary wildly across neighborhoods, price per square foot provides a more apples-to-apples comparison of value. Our analysis revealed:
Premium Tier ($800+ per sq ft)
- Beverly Hills Flats: $1,247/sq ft
- Santa Monica North of Montana: $1,163/sq ft
- Venice Beach proximity: $1,089/sq ft
- Manhattan Beach: $1,125/sq ft
- West Hollywood: $894/sq ft
These areas command premium pricing due to location cachet, school quality, amenities, and limited supply. Buyers pay for lifestyle and prestige as much as for the physical structure.
Mid-Tier ($600-800 per sq ft)
- Silver Lake: $784/sq ft
- Los Feliz: $765/sq ft
- Studio City: $712/sq ft
- Culver City: $698/sq ft
- Pasadena: $673/sq ft
The sweet spot for many buyers, offering quality neighborhoods with character, decent schools, and reasonable commutes to job centers, without the extreme premiums of trophy addresses.
Value Tier ($400-600 per sq ft)
- Highland Park: $587/sq ft
- Eagle Rock: $612/sq ft
- North Hollywood: $549/sq ft
- El Sereno: $476/sq ft
- Boyle Heights: $512/sq ft
Emerging or working-class neighborhoods where buyers can still find relative affordability. Many of these areas show strong appreciation potential as they continue gentrifying and attracting priced-out buyers from pricier neighborhoods.
Budget Tier (Under $400 per sq ft)
- Historic South-Central: $341/sq ft
- Bell: $289/sq ft
- Maywood: $267/sq ft
Areas facing economic challenges, higher crime rates, or limited amenities. While affordable on an absolute basis, these neighborhoods require careful due diligence regarding schools, safety, and appreciation potential.
Property Type Price Differentials
Significant price variations exist based on property type, even within the same neighborhood:
Single-Family Homes Detached single-family homes command the highest premiums, particularly those with yards, garages, and privacy. Median prices by bedroom count:
- 2 bedrooms: $687,000 (+3.0% YOY)
- 3 bedrooms: $823,000 (+3.1% YOY)
- 4 bedrooms: $1,147,000 (+3.8% YOY)
- 5+ bedrooms: $1,689,000 (+0.0% YOY)
Interestingly, 5-bedroom homes showed no appreciation, likely due to their positioning at the luxury end where the market has softened.
Condominiums Condos face headwinds from oversupply in certain submarkets and buyer preference for detached housing:
- 1 bedroom: $412,000 (-1.3% YOY)
- 2 bedrooms: $583,000 (+3.0% YOY)
- 3 bedrooms: $748,000 (+2.8% YOY)
Downtown LA condos particularly struggle, with vacancy rates near 13% and prices under pressure. Buyers cite high HOA fees, special assessments, and concerns about building maintenance as deterrents.
Townhouses Bridging the gap between condos and single-family homes, townhouses appeal to move-up buyers seeking more space without premium pricing:
- Average price: $698,000 (+4.2% YOY)
- Typical HOA: $250-450/month
- Days on market: 38 days (faster than single-family)
Townhouses with private yards and attached garages command premiums of 15-20% over comparable condo units.
Multi-Family (2-4 units) Small multi-family properties remain attractive to investors seeking rental income:
- Duplex average: $1,234,000 (+5.8% YOY)
- Triplex average: $1,876,000 (+6.2% YOY)
- Fourplex average: $2,341,000 (+7.1% YOY)
These properties sell on capitalization rates of 4-6%, with strong investor demand supporting prices even as mortgage rates climb.
Luxury Market Anomalies
The ultra-luxury segment ($10 million+) operates under entirely different dynamics. While the overall market has cooled, high-end sales are actually up 20% year-over-year through July 2025, with 348 properties selling for $10 million or more compared to 290 during the same period in 2024.
Notable luxury transactions in our data set included:
- $110 million estate sale in Bel Air (May 2025)
- $67.5 million Chalon Road property, off-market (June 2025)
- $87 million Malibu beachfront (April 2025)
- $54 million Beverly Hills compound (March 2025)
These mega-deals create a “halo effect” that validates pricing in the $3-8 million range, as buyers perceive relative value compared to nine-figure estates. Over 50% of $10 million+ transactions close all-cash, insulating ultra-luxury buyers from interest rate concerns that plague the broader market.
Celebrity and tech wealth continue driving this segment, with buyers viewing prime Los Angeles real estate as a secure store of value amid global economic uncertainty.
3. Neighborhood Breakdown: Winners and Losers
The Hottest Markets: Double-Digit Appreciation
West Adams: The Breakout Star
West Adams topped our appreciation charts with a staggering 107% increase in assessed values since 2016, making it the hottest neighborhood in all of Los Angeles County over the past decade. In 2025 specifically, West Adams homes appreciated an average of 11.3% year-over-year.
What’s driving this surge? West Adams sits at the intersection of several powerful trends:
Location: Positioned along the 10 Freeway in central Los Angeles, West Adams offers relatively quick access to Downtown, Culver City, and the Westside while maintaining its own distinct character.
Architecture: The neighborhood features stunning historic homes, including Craftsman bungalows, Spanish Colonial Revivals, and stately Victorian mansions. Preservation-minded buyers prize these architectural gems.
Cultural renaissance: New restaurants, coffee shops, galleries, and businesses have transformed West Adams from a sleepy residential area into a vibrant destination. The neighborhood has become a magnet for creative professionals and young families.
Relative affordability: With median prices around $1.1 million (based on current listings), West Adams offers more square footage and architectural character than buyers can find in Silver Lake or Los Feliz for similar money.
However, West Adams is not without challenges. Some blocks remain economically distressed, crime is higher than in premium neighborhoods, and public schools lag behind top-tier districts. Buyers must carefully evaluate specific streets and proximity to commercial corridors.
Highland Park: The Eastside Darling
Highland Park has been a gentrification success story, with real estate values climbing steadily over the past decade. Our 2025 data shows 9.8% year-over-year appreciation, making it one of LA’s best-performing neighborhoods.
Key drivers include:
York Boulevard transformation: The main commercial strip has evolved from chain stores to artisanal coffee shops, farm-to-table restaurants, vintage boutiques, and craft breweries. This retail renaissance attracts younger, affluent residents.
Metro Gold Line access: Direct rail connectivity to Downtown LA, Pasadena, and other destinations appeals to commuters and environmentally conscious buyers.
Arts scene: Highland Park has cultivated a thriving arts community, with galleries, live music venues, and cultural events drawing crowds and creating neighborhood identity.
Price point: Median home prices around $875,000 offer relative affordability compared to Westside alternatives, allowing buyers to purchase larger homes with yards and character.
The flip side? Long-time Latino residents face displacement pressure as values climb. Concerns about gentrification’s social impacts remain contentious, though economically, property values continue their upward trajectory.
North Hollywood: Valley Value Play
North Hollywood (NoHo) represents the San Fernando Valley’s hottest market, with 8.7% year-over-year appreciation in our sample. The NoHo Arts District has become the engine of growth:
Walkability: Unlike most of the car-dependent Valley, NoHo offers genuine walkability around the Arts District, with restaurants, theaters, shops, and the Metro Red Line station all within strolling distance.
Entertainment industry proximity: Warner Bros, Universal Studios, and numerous production facilities sit nearby, drawing industry professionals who value short commutes.
Affordability: Median home prices around $812,000 make NoHo accessible to first-time buyers and young families priced out of central LA neighborhoods.
Development pipeline: New apartment buildings and mixed-use projects continue rising, bringing additional amenities and residents who support local businesses.
NoHo’s challenges include heat (summer temperatures regularly exceed 100°F), traffic on major corridors, and public schools that don’t match Westside standards. Still, for value-conscious buyers, NoHo delivers strong fundamentals and continued upside potential.
Steady Performers: Mature Markets
Beverly Hills: Luxury Stalwart
Beverly Hills epitomizes LA luxury real estate, with median sale prices reaching $3.4 million in 2024, up 19.4% year-over-year. Our 2025 sample showed continued strength, though appreciation moderated to 6.2% as the market digested rapid prior gains.
Beverly Hills benefits from:
Global brand recognition: The 90210 ZIP code carries cachet worldwide, attracting international buyers and celebrities willing to pay premiums for the address.
School quality: Beverly Hills High School and district elementaries rank among California’s best, making the city a magnet for families prioritizing education.
Walkability and amenities: Rodeo Drive, Restaurant Row, world-class shopping, and pedestrian-friendly design create an urban village atmosphere rare in LA.
Safety: Low crime rates and responsive city services justify the premium many buyers pay for Beverly Hills living.
Properties here averaged 64 days on market—longer than the frenzied 2021-2022 period but still moving briskly for a luxury market. Cash buyers dominated, accounting for 45% of transactions in our sample.
Since 2015, Beverly Hills Flats properties have appreciated 140.5%, far outpacing Los Angeles County as a whole. While recent appreciation has moderated, the neighborhood’s fundamental scarcity and desirability support continued long-term value growth.
Santa Monica: The Beach Premium
Santa Monica real estate commands some of LA’s highest prices, with homes north of Montana Avenue exceeding $2.5 million median. Our 2025 sample showed 4.8% year-over-year appreciation—solid if unspectacular.
Santa Monica’s appeal rests on:
Beach proximity: Ocean access, coastal climate, and beach lifestyle drive demand from locals and out-of-state buyers seeking the California dream.
Walkable downtown: Third Street Promenade, Montana Avenue shopping, and Main Street’s restaurants create pedestrian-friendly urban living.
Excellent schools: Santa Monica-Malibu Unified School District ranks among California’s best, attracting families willing to pay premium prices for access.
Progressive governance: The city’s environmental initiatives, social services, and community amenities appeal to liberal-leaning buyers.
Challenges include high property taxes, stringent rent control (complicating investment property economics), homelessness on some commercial corridors, and traffic congestion. Days on market averaged 52 in our sample—buyers take their time at these price points.
Silver Lake: The Creative Hub
Silver Lake has long been LA’s creative class headquarters, attracting artists, writers, filmmakers, and musicians. Real estate prices reflect this desirability, with median homes reaching $1.2 million and year-over-year appreciation of 5.3% in our 2025 sample.
Silver Lake offers:
Architectural heritage: Mid-century modern homes and hillside properties with stunning views define the neighborhood’s aesthetic.
Reservoir recreation: The Silver Lake Reservoir’s 2.2-mile walking path provides a rare urban oasis for exercise and relaxation.
Restaurant and cafe scene: Sunset Junction and surrounding areas boast some of LA’s best dining, drawing food-focused residents.
Proximity to Hollywood: Easy access to entertainment industry jobs makes Silver Lake popular with industry professionals.
Inventory remains tight, with only 15-20 homes typically available at any given time. Bidding wars still occur on properly priced, desirable properties, though they’re less common than during the pandemic years. Days on market averaged 28 in our sample—among the fastest in the city.
Cooling Markets: Where Growth Has Stalled
Downtown LA Condos: Oversupply Issues
Downtown LA’s condo market faces significant headwinds, with our 2025 sample showing flat to negative appreciation (-1.2% average). Vacancy rates near 13% signal oversupply, while rental rates have stagnated.
What went wrong?
Overbuilding: Developers rushed to capitalize on downtown’s renaissance, constructing thousands of luxury condo units. Supply now exceeds demand, particularly at the high end.
Work-from-home impact: The shift to remote work has reduced downtown’s office worker population, diminishing the customer base for downtown living.
Quality of life concerns: Homelessness on Skid Row and surrounding streets, concerns about crime, and limited grocery options deter some potential buyers.
HOA fees: Many downtown condos carry HOA fees of $600-1,000+ monthly, making ownership expensive even after purchase.
Opportunities exist for contrarian buyers. Well-located units in quality buildings trade at significant discounts to 2021 peaks, offering potential value for those willing to bet on downtown’s long-term revival. Live-work artists, urban enthusiasts, and investors seeking rental income find deals in a market segment most buyers have abandoned.
Calabasas: Suburban Slowdown
Despite its association with celebrity residents (including multiple Kardashians), Calabasas has underperformed, with just 35.7% appreciation from 2016-2024—far below county averages. Our 2025 sample showed continued sluggishness, with 2.1% year-over-year gains.
Factors hampering Calabasas:
Remote location: The city sits at the western edge of the San Fernando Valley, requiring long commutes to most LA job centers.
High prices, limited upside: Median home prices around $1.4 million price out many buyers, while appreciation lags neighborhoods offering better returns.
Homogeneity: Large tract homes on similar lots lack the architectural character buyers prize in central LA neighborhoods.
Wildfire risk: The 2018 Woolsey Fire devastated nearby areas, raising insurance costs and buyer concerns about fire danger.
Calabasas appeals to families seeking newer construction, top schools, and suburban amenities. For investors seeking appreciation, however, more compelling opportunities exist elsewhere.
South Bay Mixed Signals
The South Bay cities—Manhattan Beach, Redondo Beach, Hermosa Beach, El Segundo, Torrance—show divergent trends:
Torrance leads the pack with 13.6% year-over-year appreciation, driven by its affordability relative to beach cities, excellent schools, and aerospace industry employers.
Manhattan Beach remains ultra-premium (median $3.2 million), with modest 3.7% appreciation as buyers balk at sky-high prices.
Redondo Beach and Hermosa Beach fall in between, with 5-6% appreciation and steady demand from buyers seeking beach living without Manhattan Beach premiums.
Days on market across the South Bay average under 30 days for properties under $2 million, stretching to 50-60 days for homes exceeding $3 million. Cash buyers remain prevalent, particularly in Manhattan Beach where they represent 40% of transactions.
Emerging Opportunities: Tomorrow’s Hot Neighborhoods
El Sereno: The Next Highland Park?
El Sereno, bordering Highland Park to the south, shows early signs of gentrification. Our 2025 sample showed 7.2% year-over-year appreciation, and prices remain affordable with a median around $745,000.
Catalysts include:
Spillover from Highland Park: As Highland Park prices out some buyers, they’re looking east to El Sereno for similar housing stock at lower prices.
Freeway access: The 10, 60, and 710 freeways provide connectivity to throughout the region.
Large lots: Many El Sereno homes sit on larger lots than comparable Highland Park properties, appealing to buyers seeking yards and space.
Room for commercial development: Underutilized commercial corridors offer potential for the coffee shops, restaurants, and boutiques that transformed Highland Park.
Risks remain, including higher crime than premium neighborhoods and public schools that underperform. Early adopters willing to bet on El Sereno’s trajectory could see outsized returns, but the neighborhood remains decidedly rougher around the edges than areas that have fully gentrified.
Glassell Park: The Quiet Riser
Adjacent to Highland Park and Eagle Rock, Glassell Park has quietly appreciated 79% from 2016-2024. Our 2025 sample showed 8.1% year-over-year gains, with median prices around $892,000.
Glassell Park attracts buyers seeking:
Hillside homes with views: Many properties offer stunning vistas of downtown LA and surrounding mountains.
Larger lots: Homes often include significant yards, rare in many central LA neighborhoods.
Character architecture: Craftsman bungalows, Spanish Revivals, and mid-century moderns provide the architectural diversity buyers crave.
Proximity to trendy neighbors: Highland Park and Eagle Rock’s commercial strips sit within minutes, providing dining and entertainment options while Glassell Park itself remains more residential.
Limited commercial development has kept Glassell Park under the radar, but that may be changing. Expect continued steady appreciation as buyers priced out of trendier neighborhoods discover this overlooked gem.
Historic South-Central: High Risk, High Reward
Historic South-Central remains LA’s most affordable area, with median assessed values still below $200,000. Our limited sample showed 12.7% year-over-year appreciation—impressive percentage gains from a very low base.
The bull case for South-Central rests on:
Extreme affordability: Buyers can purchase homes for a fraction of prices elsewhere in the county.
Room for appreciation: Even modest neighborhood improvements could drive significant percentage gains.
USC proximity: The university’s continued expansion and investment in the surrounding area could lift all boats.
Underutilized land: Large parcels offer development potential as LA’s housing crisis intensifies.
However, risks are substantial:
Crime rates significantly exceed county averages Public schools rank among California’s lowest-performing Economic distress and unemployment remain high Limited amenities and commercial services
Investors seeking extreme value plays eye South-Central, but most owner-occupant buyers avoid the area. Whether the neighborhood can overcome its challenges and gentrify like other LA areas remains an open question.
4. Days on Market: The New Timeline Reality
The End of Instant Sales
Perhaps no metric better captures the market’s transformation than days on market (DOM). During the pandemic frenzy, well-priced LA homes regularly sold within 3-7 days, often with multiple offers well above asking price. Those days are gone.
Current DOM by Price Range:
Under $750,000: 28 days average
- These entry-level properties still move relatively quickly as first-time buyers and investors compete for limited affordable inventory
- Turnkey homes in emerging neighborhoods may still sell in under two weeks
- Fixers or properties with issues can sit 40-50 days
$750,000 – $1.5 million: 44 days average
- The “move-up” market has cooled considerably, with buyers taking time to evaluate options
- Well-presented homes in desirable neighborhoods sell within 30-35 days
- Properties requiring work or priced aggressively take 60+ days
$1.5 million – $3 million: 61 days average
- Upper-middle market buyers are highly selective, viewing 15-20 properties before making offers
- Luxury amenities (pools, views, modern updates) reduce DOM significantly
- Dated properties or those with deferred maintenance struggle to attract buyers
$3 million – $10 million: 87 days average
- True luxury buyers operate on their own timeline, often viewing the same property multiple times
- Off-market or “whisper listing” properties still change hands quickly, but MLS-listed homes take substantially longer
- Properties over $5 million may sit 100+ days before finding the right buyer
$10 million+: 134 days average
- Ultra-luxury sales are bespoke transactions, often involving extensive negotiations
- Some properties sell in days when they hit the market at the right price, while others languish for months or years
- Many trophy properties never formally list, changing hands through agent networks and quiet marketing
Geographic DOM Variations
Days on market vary dramatically by neighborhood, reflecting local supply-demand dynamics:
Fast Markets (under 30 days average):
- Silver Lake: 28 days
- Manhattan Beach: 26 days
- Beverly Hills (under $5M): 29 days
- Torrance: 27 days
- Culver City: 31 days
These neighborhoods benefit from limited inventory, strong demand, and buyer willingness to act quickly on properly priced properties.
Medium Markets (30-50 days average):
- Santa Monica: 42 days
- Pasadena: 38 days
- Studio City: 41 days
- Highland Park: 35 days
- Eagle Rock: 39 days
Balanced markets where buyers have options but good properties still move at reasonable pace.
Slow Markets (50+ days average):
- Downtown LA (condos): 73 days
- Calabasas: 58 days
- Lancaster/Palmdale: 67 days
- Some Valley suburbs: 55 days
- Foreclosure/REO properties: 81 days
Markets facing oversupply, buyer resistance, or economic challenges see extended DOM.
What’s Driving the Change?
Several factors explain why homes take longer to sell in 2025:
Increased Inventory
Active listings in Los Angeles County rose 30% year-over-year to nearly 16,000 homes in July 2025. While still below historical averages, this represents a meaningful increase in buyer options. With more choices, buyers can afford to be selective and take their time evaluating properties.
Affordability Constraints
At 6.5-7.5% mortgage rates, fewer buyers qualify for the same loan amounts they could access at 3% rates. This shrinks the buyer pool for properties at any given price point. Sellers who don’t adjust expectations face extended DOM as they wait for the limited number of qualified, motivated buyers to find their listing.
Buyer Sophistication
Burned by the pandemic buying frenzy—where many overpaid for homes in multiple-offer situations—buyers now approach purchases more cautiously. They insist on inspections, appraisals, and time to research neighborhoods and comps before committing. The days of waiving contingencies and bidding sight-unseen have largely ended.
Seasonal Factors
Real estate traditionally slows during summer months (July-August) and winter holidays (November-December). However, 2025’s extended DOM persists even during typically busy spring and fall seasons, suggesting structural rather than seasonal factors at play.
Quality Differentiation
In a slower market, property condition and presentation matter more. Turnkey homes with modern updates, good photography, and competitive pricing still sell relatively quickly. Fixers, dated properties, and poorly marketed listings face significant DOM as buyers gravitate toward move-in ready options.
DOM and Pricing Correlation
Our data reveals a strong correlation between pricing strategy and days on market:
Priced at or Below Market Value:
- Average DOM: 31 days
- Multiple offer rate: 42%
- Final sale price: 100.8% of asking (slight premium)
Sellers who price aggressively attract immediate attention, often generating multiple offers that push prices above asking despite the “low” list price.
Priced 1-5% Above Market Value:
- Average DOM: 52 days
- Multiple offer rate: 18%
- Final sale price: 97.2% of asking (small discount)
Moderately optimistic pricing extends DOM but typically results in a sale at close to asking price after some negotiation.
Priced 5-10% Above Market Value:
- Average DOM: 78 days
- Multiple offer rate: 7%
- Final sale price: 92.8% of asking (significant discount)
Aggressive overpricing dramatically extends DOM and ultimately forces price reductions to close to market value anyway, wasting time and creating the perception of a “stale” listing.
Priced 10%+ Above Market Value:
- Average DOM: 112 days
- Multiple offer rate: 2%
- Final sale price: 89.4% of asking (major discount)
Severe overpricing essentially removes a home from the active market, as buyers dismiss it as unrealistic. After months of sitting, sellers typically must reduce below even market value to reignite interest
