The Los Angeles Housing Market Is Shifting — Again
As we move through the final quarter of 2025, Los Angeles real estate continues to evolve in ways that both surprise and challenge buyers and sellers alike. After two years of volatile interest rates, cooling demand, and rising inventory, the local housing market is finding a new rhythm — one defined by balance, strategy, and opportunity.
At R3ES, we’ve been closely tracking these shifts to help our clients make confident, data-driven decisions. Here’s what the latest numbers — and on-the-ground experience — reveal about the October 2025 Los Angeles housing market.
1. Inventory Is Rising, But Still Below Pre-Pandemic Levels
For the first time in over three years, the number of active listings in Los Angeles County has risen by nearly 14% compared to last fall.
However, it’s important to note: inventory is still about 22% below the historical average.
That means buyers have more homes to choose from than they did a year ago — but not enough to push prices down dramatically. In neighborhoods like Sunland-Tujunga, Burbank, and Glendale, we’re seeing homes stay on the market a bit longer, averaging 29–34 days, compared to just 17 days this time last year.
R3ES Insight: Sellers should focus on presentation, pricing, and positioning. The best-prepared homes are still selling fast and often receive multiple offers — but only when they’re marketed correctly.
2. Interest Rates Are Holding — and Buyers Are Adjusting
Mortgage rates have hovered between 6.4% and 6.8% throughout October 2025. While these rates are higher than the record lows of 2021, many buyers have accepted this as the “new normal.”
The result? A healthier, more realistic market dynamic.
Instead of emotional bidding wars, buyers are returning to calculated offers and longer due-diligence periods. Meanwhile, savvy sellers are offering rate buy-downs or closing cost credits to keep deals moving.
Pro Tip for Buyers: Lock your rate early and work with a trusted lender who can help you strategize. Even a quarter-point reduction can save tens of thousands over the life of your loan.
3. Prices Are Leveling Off — With Some Exceptions
The median home price in Los Angeles County currently sits around $865,000, nearly flat from last month but down about 2.3% year-over-year.
Yet, certain pockets are outperforming the countywide trend.
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- Glendale and Burbank remain strong due to limited inventory and top-rated schools.
- Northeast LA (Eagle Rock, Highland Park, Sunland-Tujunga) is holding steady, attracting young professionals priced out of central LA.
- Luxury markets like Beverly Hills and Malibu are seeing modest declines, with price-sensitive buyers waiting for deeper discounts.
R3ES Insight: 2025 isn’t a “buyer’s” or “seller’s” market — it’s a strategist’s market. Those who understand timing, pricing, and marketing will win.
4. Renovations and ADUs Are Boosting Home Values
One of the biggest opportunities right now? Accessory Dwelling Units (ADUs) and home upgrades.
Homes with a separate rental unit or modern renovation are commanding up to 18% higher selling prices than similar properties without improvements.
This trend is especially strong in Sunland-Tujunga, Shadow Hills, and North Hollywood, where homeowners are building ADUs for extra income or multi-generational living.
Pro Tip for Sellers: Small investments in curb appeal, fresh paint, and energy-efficient upgrades can produce an outsized return. The team at R3ES can help you identify the most profitable improvements before listing.
5. The Outlook for the Rest of 2025
Looking ahead to winter and early 2026, the Los Angeles housing market is expected to remain stable with moderate price movement.
If interest rates drop below 6%, expect a surge in buyer activity and renewed competition, particularly for move-in-ready homes under $1 million.
For investors, this period offers a rare opportunity to acquire properties before the next upswing.
R3ES Forecast: Expect the market to favor well-priced listings, creative financing strategies, and strong marketing exposure through the first quarter of 2026.
Final Thoughts: Strategy Wins in 2025
The takeaway for Los Angeles homeowners and buyers is simple:
This market rewards those who plan, adapt, and act intentionally.
At R3ES, we combine deep local knowledge with innovative marketing to help you navigate changing conditions — whether you’re buying your first home, selling a luxury estate, or investing for long-term growth.
📞 Ready to Make Your Next Move?
If you’re thinking about selling, buying, or investing, contact R3ES Real Estate today for a personalized market analysis.
We’ll show you exactly where the opportunities are — and how to leverage them for maximum gain.
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📍 Serving Greater Los Angeles | Residential & Commercial | DRE #01912306