June 2025: Los Angeles Market Update
As we enter June 2025, the Los Angeles housing market continues to navigate an uneven recovery shaped by economic headwinds and cautious buyer sentiment. Despite a 3.5% year-over-year increase in the median sold price for Los Angeles County per the MLS, momentum has slowed compared to the rapid gains of prior years. Even select prime neighborhoods, including Culver City and Silver Lake, have even posted modest year-over-year declines, reflecting increased price sensitivity among buyers amid ongoing affordability concerns.
The market’s moderation is also reflected in sales activity. While demand remains steady in core submarkets, rising borrowing costs and economic uncertainty have tempered some of the enthusiasm seen earlier in the spring. Buyers continue to face challenges navigating elevated prices and monthly payments, while sellers are adjusting expectations accordingly. Currently, the market leans slightly in favor of buyers, with Redfin reporting that seller competition has softened for the first time in years.
Mortgage rates remain a critical factor. As of June 05, 2025, the 30-year fixed mortgage rate sits at 6.85%, per Freddie Mac. This slight increase from earlier in the month stems from broader economic pressures, including ongoing concerns about federal debt and inflation. Though rates have fluctuated week to week, they remain significantly above pre-pandemic levels, contributing to constrained affordability for many prospective buyers. The pace of transactions has begun to shift. While homes in prime locations are still selling quickly and competitively, more listings are lingering on the market longer than they did earlier this year. The share of homes selling above asking price has declined slightly, and price reductions have become more common, especially in mid-tier segments where buyers are more rate sensitive.
Looking ahead, the Los Angeles market is expected to remain sensitive to macroeconomic conditions, particularly interest rate movements and consumer confidence. While inventory is gradually increasing and some buyers are regaining leverage, volatility in mortgage rates and broader economic indicators may continue to influence market behavior through the summer. That said, the California Association of Realtors maintains a cautiously optimistic outlook, citing the resilience of demand and an anticipated seasonal uptick during the peak housing months. At Highland Premiere, we share this sentiment, as reflected by an increase in activity, including several successful closings at the end of May and the recent launch of multiple new listings across key neighborhoods.
At Highland Premiere, we recognize that market data tells only part of the story. Navigating today’s real estate landscape requires experience, perspective, and a client-focused approach. Whether you're considering a sale, searching for your next home, or simply weighing your options, our experienced team is here to support you with integrity, strategic insight, and a deep commitment to your goals. In a market as dynamic as this one, we're proud to be your trusted partner every step of the way.
