August 2025 Market Update from Boutique Realty
With summer in full swing, you might expect a hot housing market in Los Angeles—but surprisingly, it’s been anything but. After a slow spring season, home sales remain soft across L.A. County. Inventory is rising, buyer activity is cautious, and mortgage rates have quietly dipped to their lowest levels in nearly a year.
So is now the right time to make a move in Los Angeles?
Let’s break down what’s happening in today’s housing market and what it means for local buyers.
🔑 Key Takeaways for L.A. Buyers
- Mortgage rates are at a 10-month low, making homes more affordable
- Buyer-friendly conditions: There are more sellers than buyers in the market
- Home prices are still high, but softening is expected toward the end of 2025
- Economic uncertainty is keeping many buyers on the sidelines
- Los Angeles inventory is growing, giving buyers more leverage and options
📉 Mortgage Rates Drop = Bigger Budget
Mortgage rates have quietly fallen to their lowest point since October 2024, creating a rare affordability window.
In practical terms, buyers in L.A. can now afford up to $20,000 more home than they could just a few months ago—with the same monthly payment. That increase in purchasing power can be the difference between settling and securing your dream home.
If you’ve been pre-approved earlier this year, it’s worth revisiting your budget. You may be able to expand your search to more desirable neighborhoods or upgraded properties.
📊 It’s a Buyer’s Market – Even in L.A.
For the first time in years, the real estate tide is shifting. Nationally, there are nearly half a million more sellers than buyers, and we’re seeing similar patterns in Los Angeles—particularly in mid-to-luxury segments.
What this means for L.A. buyers:
- More inventory to choose from
- Longer days on market
- Increased room to negotiate on price, terms, or repairs
- Sellers are more open to concessions to close deals
Even in high-demand neighborhoods like Studio City, Sherman Oaks, and Woodland Hills, we’re seeing homes linger on the market longer than usual.
💰 Why Aren’t More People Buying?
Despite favorable mortgage rates and buyer leverage, many L.A. buyers remain cautious. Why?
- Home prices are still near record highs, even if leveling off
- Rising insurance costs, especially in hillside and fire-prone areas
- Economic uncertainty due to inflation, global instability, and job market anxiety
- Tariff and construction material costs adding to new build pricing
The result: a market with opportunity, but hesitation—giving confident buyers the upper hand.
🏘️ Los Angeles Microtrends to Watch
At Boutique Realty, we’ve seen some interesting local trends:
- Price reductions are common in listings above $1.5M
- More off-market opportunities are becoming available—especially for serious, pre-approved buyers
- First-time buyer interest is rising in areas like Valley Glen, Lake Balboa, and North Hollywood
- Fixers and mid-century homes are commanding attention from investors and design-minded buyers
Buyers who act decisively—especially with a strong agent behind them—are securing great deals.
📣 Expert Insight from Redfin’s Economist
“Nationally, now is a good time to buy, if you can afford it. Prices keep climbing, but with lower mortgage rates and significantly more inventory, buyers have an upper hand in negotiations. A volatile economy is making everyone uneasy, though, and local markets vary widely. Buyers serious about making offers should consult a local agent and be confident in their finances and future income.”
— Daryl Fairweather, Chief Economist, Redfin
🧭 Bottom Line: Is It the Right Time for You?
If you’re financially stable, plan to stay in your home for several years, and are tired of renting or waiting—this may be one of the best windows we’ve seen in L.A. in a long time.
Rates are favorable. Inventory is growing. And sellers are finally motivated to negotiate.
Timing the market is never perfect, but entering during a lull—with a knowledgeable local agent at your side—can make all the difference.
Brought to you by Boutique Realty
Helping clients navigate the complex L.A. market with clarity, care, and expertise.
📞 Call us at 818-312-0831
🌐 www.allensellsla.com
📍 Serving Los Angeles, Ventura County & beyond