By ARC Estates Group
The Los Angeles housing market is shifting this August 2025, and it’s opening up new opportunities for both buyers and sellers. With inventory climbing, mortgage rates dipping, and price growth slowing, this month is shaping up to be one of the most balanced we’ve seen in years. Whether you’re planning to buy your first home, upgrade, or sell, here’s a clear look at what’s really happening in LA real estate right now.
Slowing Price Growth, Steady Market
The Los Angeles real estate market remains resilient, but price growth has cooled compared to last year.
- Median home price in Los Angeles County: ~$835,000 (about 2.9% higher than last year)
- City-wide average: ~$1.125M, with homes spending about 48 days on market, roughly a week longer than summer 2024.
This means sellers are still achieving strong prices, but buyers have a bit more breathing room when making decisions.
A Real Buyer’s Market Emerging
Inventory is the big story this month — it’s up significantly year-over-year, giving buyers more choice and leverage.
- Higher inventory means less competition and more room for negotiation.
- Homes are taking slightly longer to sell, but well-priced listings are still moving quickly.
If you’ve been waiting for the right time to make an offer, this could be it.
Breathing Room As Market Cools
Across much of Los Angeles, the frenzied bidding wars of past years are giving way to a calmer pace.
- More listings on the market allow buyers to compare options.
- Sellers need to be more strategic with pricing to stand out.
Mortgage Rates Slide A Bit
Good news for buyers:
- As of early August, average 30-year mortgage rates have dropped to 6.63%, the lowest since April.
- A small rate drop can mean big savings over the life of a loan, so buyers watching the market may be ready to jump in.
What This Means For You
| For Buyers | For Sellers |
|---|---|
| Take advantage of higher inventory—more options to choose from. | Price competitively to attract attention in a slower-paced market. |
| Lock in mortgage rates while they’re trending down. | Stage and market your home to stand out from the competition. |
| Negotiate terms that work best for your needs. | Be prepared for buyers to request concessions or repairs. |
Final Thoughts From ARC Estates Group
This August in Los Angeles, the market feels balanced for the first time in a while. Sellers who adapt quickly to changing conditions can still secure strong offers. Buyers have more choice, more time, and slightly better financing conditions than we’ve seen in recent months.
If you’re curious about how these trends affect your neighborhood, We’d be happy to break down the numbers for your area.
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