Pricing Is Holding Up… But Why?

Despite sluggish demand and intense affordability pressure, home values across LA County remain elevated.

The median price in many parts of the city still hovers around the $1.1M mark. And while some areas have dipped slightly, others are oddly rising — particularly more central or historically “hot” neighborhoods.

• In some neighborhoods, pricing has increased year-over-year, bucking national trends.

• In others, you’ll find steep double-digit price drops, especially where speculative flipping was common.

It’s a tale of two markets: Prime locations with clean, move-in ready homes are still competitive. But homes with issues — odd floorplans, unfinished renovations, or overhyped flips — are lingering.

Inventory Is Up — But Buyers Aren’t Biting

Inventory has grown in 2025, especially compared to the inventory-starved years of the pandemic boom. But this isn’t an inventory surge — it’s more like a drizzle of stale listings.

Homes are sitting longer. Reductions are becoming more frequent. But buyers? They’re hesitant.

Even with more choices available, buyers are playing it safe. They’re skipping anything overpriced, quirky, or in need of major work. And they’re more willing than ever to walk away.

In short, the listings that should’ve sold in a weekend in 2021 are now stretching into their third month with no serious offers.

Financing Costs Are Freezing the Middle

Mortgage rates hovering near 7% have completely reshaped affordability.

• The average LA buyer now needs a household income in the low $200Ks just to afford something median-priced.

• Many high-income earners have been priced out not because of income limits, but because of payment shock.

• First-time buyers? Many are out of the game altogether — sticking with rentals, renewing leases, or waiting out the storm.

This has created a strange distortion: the market hasn’t dropped enough for buyers to feel like they’re getting a deal, but it’s gotten expensive enough to feel risky.

So, they sit. And wait.

What Are Buyers Really Doing?

Many active buyers have shifted into “wait-and-see” mode. They’re watching listings, crunching numbers, and — in many cases — making offers well under ask to test seller motivation.

Here’s what’s trending:

• “Perfect” homes — well-priced, updated, and in desirable school districts — still sell quickly.

• Flips with bad finishes or rushed renovations are getting passed over.

• Condos and townhomes are seeing longer days on market, especially if HOA fees are high or amenities are dated.

• Fixers still draw interest, but only from well-capitalized buyers who can stomach renovation costs.

In this environment, the phrase many agents are repeating is: “The only deals out there are on homes no one else wants.”

Sellers Are Stuck in the Past

One of the reasons the market feels stuck is because many sellers haven’t adjusted their expectations.

Many still believe their home is worth what it would have sold for in the frenzy of 2021–2022. They’re holding tight to high list prices, even as buyer demand shrinks. That’s leading to:

• Homes being relisted after failed escrows

• Listings with 60+ days on market and multiple price cuts

• Agents trying to “sell the sizzle” on homes that need $150K+ in work

In this market, pricing is everything — and overpricing is the fastest way to get ignored.

Market Psychology: Frozen, Not Frantic

The emotional energy of the market feels frozen. People want to buy, but they don’t want to overpay. Sellers want to sell, but don’t want to “lose” money — even if they’ve owned the home for a decade and stand to make a healthy profit.

There’s no sense of urgency. And that’s what’s keeping this strange stalemate alive.