September 2025: Los Angeles Market Update
As we step into September, the Los Angeles housing market continues to adjust to post-peak conditions, with citywide data reflecting a composed but price-sensitive environment. According to the MLS, the average sale price in Los Angeles city held steady at approximately $1.127 million in August, and homes spent an average of 36 days on market, a pacing that underscores a more deliberate and thoughtful buyer pool compared to earlier this year.
This shift toward a slower rhythm signals that affordability remains top-of-mind for many prospective buyers. Thoughtfully priced homes in prime neighborhoods still command attention and competition, but a broader range of listings are lingering longer, prompting more strategic pricing and negotiation. These conditions speak to a market no longer characterized by urgency, but by measured engagement and cautious confidence.
In terms of supply, active inventory in Los Angeles city declined by 6% from July to August, per the MLS. This month-to-month dip likely reflects a late-summer pause in new listings, though it may also signal seller hesitation amid ongoing affordability concerns. Still, buyers remain engaged and discerning as they navigate a market with more breathing room than during the peak pandemic years.
Mortgage rates continue to shape buyer behavior. As of early September, the 30-year fixed rate sits at approximately 6.50%, per Freddie Mac, marking the lowest level since late 2024. While affordability challenges remain, this modest rate relief has helped support steady transactional momentum throughout August.
At Highland Premiere, we’ve experienced strong and strategic activity through August and into early September. Several new listings entered escrow, and we successfully closed multiple transactions across prime Los Angeles neighborhoods. These trends reflect a market that, while less frenzied than spring, remains active, particularly for properties that are well-prepared and competitively priced.
Our belief in thoughtful, client-first real estate has never been stronger. In a market defined by nuance, clarity and local insight make all the difference. Whether you're considering your next move or simply evaluating timing, our team, anchored by care, integrity, and expertise, is here to guide you confidently and thoughtfully through every step of the journey.
Read our September Newsletter here
