The Los Angeles housing market is showing signs of cooling after years of rapid price appreciation. While home values remain high, the pace of growth has slowed as economic uncertainty, elevated prices, and shifting buyer behavior reshape the landscape. According to recent data, Los Angeles County homeowners saw the lowest quarterly appreciation in nearly a decade — signaling a market that’s beginning to balance after years of aggressive gains.
A Market Losing Some of Its Momentum
During the third quarter of 2025, Los Angeles County home sellers realized a median appreciation rate of 50 percent compared to their original purchase prices, according to data from ATTOM. While this still represents significant growth, it marks a notable slowdown from prior years when appreciation soared above 70 percent during the height of the pandemic-era housing boom.
The median home price in Los Angeles County now stands around $913,000, based on Zillow’s data — a number that underscores the city’s enduring desirability but also its affordability challenges. Nearly all of the county’s 258 ZIP codes experienced price growth during this period, yet the overall rate of increase has moderated as both buyers and sellers adjust to new market realities.
Glendale Leads in Value Growth
Among all Los Angeles County ZIP codes, Glendale (91201) saw the most impressive surge in home values, with a 204 percent median appreciation compared to previous sales. This growth reflects the city’s continued demand for well-located, family-friendly neighborhoods, excellent schools, and proximity to major employment centers.
Other markets across Los Angeles also maintained steady appreciation, though gains were more modest compared to recent years. A few areas — such as Palisades Park (90272) and Downtown’s 90017 ZIP code — even recorded depreciation, reflecting localized factors like post-wildfire recovery and shifts in urban demand.
Why the Slowdown Is Not Necessarily a Negative
While a slower pace of appreciation might sound like a setback, it actually represents a healthier and more sustainable market. Over the past few years, prices climbed at historic rates, fueled by low mortgage rates and limited inventory. Now, as economic conditions normalize, home values are stabilizing — allowing more balanced negotiations between buyers and sellers.
This moderation could also open new opportunities for buyers who were previously priced out during the height of competition. Homes are sitting on the market a bit longer, giving buyers time to perform due diligence and make informed decisions rather than rushing into bidding wars.
Economic Uncertainty and Buyer Caution
High mortgage rates, rising insurance costs, and broader economic uncertainty have contributed to the market’s shift. In August 2025, roughly 15 percent of home sales in Los Angeles fell through, showing that buyers are becoming more cautious and selective. Luxury transactions — those priced at $4 million and above — also dipped by over 14 percent year over year, reflecting the seasonal slowdown and shifting buyer sentiment.
Despite these challenges, Los Angeles remains one of the most desirable real estate markets in the nation. Inventory remains tight, and long-term demand for quality housing continues to support property values, particularly in established and well-connected neighborhoods.
What This Means for Homeowners and Buyers
For homeowners, this environment offers a chance to capitalize on long-term equity while setting realistic expectations for future appreciation. Properties in well-maintained, high-demand areas — especially those offering modern amenities, energy efficiency, or proximity to good schools — will continue to attract interest.
For buyers, the slowdown may represent an ideal window to re-enter the market. With less competition and more room for negotiation, buyers can focus on value and long-term potential instead of rushing to meet rising prices.
Expert Guidance from Boutique Realty
At Boutique Realty, we understand that the Los Angeles housing market is constantly evolving — and success depends on timing, strategy, and local expertise. Whether you’re planning to buy, sell, or invest, our team can help you navigate today’s shifting conditions with insight and confidence.
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