August 2025: Los Angeles Market Update
As we head into August, the Los Angeles housing market continues to evolve in response to shifting economic dynamics and local demand patterns. According to the MLS, Los Angeles home prices reached a median of $1.125 million in June, representing a 2.4% year-over-year increase.
While prices have remained relatively stable, sales activity has shown signs of softening. Total transactions in Los Angeles posted a modest 11.6% month-over-month gain per the MLS, yet turnover remains more measured compared to the faster pace seen earlier in 2025. This signals a real estate market adjusting to affordability constraints and increased selectivity among buyers.
A key trend this summer has been the rise in available inventory. Active listings across Los Angeles County increased by 7.1% from June to July, offering buyers more options across various price points. At the same time, nearly 49% of homes sold below asking price, a reflection of growing buyer leverage, particularly in mid-tier and price-sensitive segments. Well-positioned homes in high-demand neighborhoods, however, continue to attract strong interest and often command multiple offers.
This shift is also reflected in time on market. In July, the average number of days a home remained on the market in Los Angeles rose to 37 days, a 40% year-over-year increase. This extended timeline signals a more measured and selective buyer pool, as affordability challenges and elevated borrowing costs continue to temper urgency.
Mortgage rates remain a pivotal factor in buyer behavior. As of August 1, 2025, the 30-year fixed mortgage rate stands at 6.76%, per Freddie Mac. While slightly below recent highs, rates remain significantly above pre-2022 levels, continuing to shape purchase power and negotiations on both sides of the transaction.
