Los Angeles, CA Housing Market Report

The Los Angeles housing market as of December 2025 is undergoing a notable transition toward a more balanced environment, though it remains challenging for many participants. With a median home value of $923,800, the market has seen a year-over-year decline of 2.73%, yet recent monthly data suggests a recovery is underway. After hitting a low point in the summer, prices have climbed steadily for five consecutive months, indicating that demand is beginning to absorb the available inventory despite higher borrowing costs.

Inventory levels have seen a significant boost, with active listings up 11.53% compared to last year, reaching 18,566 units. This increase in choice for buyers, combined with an average of 65 days on market—a 12-day increase from the previous year—suggests that the frantic bidding wars of the past have subsided. The sale-to-list ratio currently sits at a perfectly balanced 1.0, meaning homes are generally selling for their asking price, reflecting a market where neither buyers nor sellers hold an overwhelming advantage.

Looking ahead, the Los Angeles-Long Beach-Anaheim metro area continues to face a supply-demand imbalance that supports long-term value, even as short-term fluctuations occur. For sellers, the recent month-over-month price appreciation is an encouraging sign that the market floor has been established. Buyers, meanwhile, should take advantage of the increased inventory and longer cooling-off periods to conduct thorough due diligence, as the rapid pace of the market has slowed enough to allow for more calculated decision-making.