LA Market Shift: What Buyers & Sellers Should Know📊 Buyers have leverage, but sellers still have a shot—here’s the breakdown
In LA, the tables are turning for buyers
If you’ve been dreaming of lowballing a home offer without getting ghosted by the agent, your time has come. Redfin reports there are nearly 500,000 more home sellers than buyers in the U.S. This is the biggest gap on record and LA is no exception.
With a bump in inventory and buyers pulling back, LA’s housing scene seems to be flipping. Redfin earlier this month predicted that home prices will drop 1% year over year by the end of 2025, and the growing imbalance between buyers and sellers is the basis for that prediction. When sellers are competing for a small pool of buyers, that indicates a buyer’s market. And when it’s a buyer’s market, home prices can fall because buyers have negotiating power.
🔑 Why this is happening:
🏦 Mortgage rates are still hovering around 6.87%, pricing out many would-be buyers
💸 LA’s median home price remains high, too high for many to stomach
🔁 Pandemic-era sellers with low rates are listing due to job changes, life shifts, and now, adjustable-rate mortgages that are coming due
💵 Economic uncertainty: tariffs, stock market volatility, and inflation are making buyers cautious and slowing decisions in a shifting environment
📉 Specifically in LA:
🏠 There are 27% more single-family sellers than buyers
🕰️ 44% of homes listed in April sat for 60+ days, the longest April wait since 2020
💰 Sellers are clinging to outdated price comps, scaring off realistic offers
💭 My Take:
It’s a shifting market. Some homes are still getting multiple offers, usually when they’re priced aggressively low and have the it-factors: charm, good design, a great street in a sought-after area. The kind of house buyers wait out for.
But overall, more homes are sitting on the market, inventory is climbing, and things are tilting toward a buyer’s market. It’s been a minute, but we’re here now.
Market conditions are constantly changing. Buyers, this is your moment to make moves while there’s less competition. If you own a home and are worried about your equity, remember: this is just a moment in time, and it will pass.
🔑 6 Buyer Negotiation Tips
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