End of Year Home Sales in Los Angeles Gives Hope for Buyers & Sellers

Mar 4
3 min read

If you've been wondering about buying, selling, or just keeping an eye on property values in Los Angeles, you're not alone. The latest numbers for December 2025 tell us a compelling story: Los Angeles housing market wrapped up the year with a slight cool-down in median home prices, but surprisingly robust home sales, hinting at a more inviting and stable market for 2026.

Let's dive into the specifics, using the recent insights from the California Association of Realtors® (C.A.R.), to understand what truly happened as 2025 came to a close.

Home Prices: A Closer Look at What You'll Pay

If you've felt like home prices in LA have been climbing relentlessly, December 2025 offered a slight pause. According to C.A.R.'s report, the median price for an existing single-family home in Los Angeles County in December 2025 was $890,910. This represents:

A month-over-month drop of 5.5% from November 2025's $942,610.
A year-over-year decrease of 2.4% from December 2024's $912,370.

Looking at the broader Los Angeles Metro Area, the median price was $807,540, showing a similar, though less steep, trend:

Down 1.9% from November 2025.
Down 1.0% from December 2024.

Now, why is this important? While any dip might sound alarming, it’s actually a sign of the market adjusting. For potential buyers, this could mean less aggressive bidding wars and perhaps a moment to catch your breath. For sellers, it might signify that the peak frenzy has eased, requiring more strategic pricing.

C.A.R.'s Chief Economist, Jordan Levine, noted that “housing affordability showed some improvement in the fourth quarter.” This price adjustment, paired with lower interest rates (which we’ll get to), is precisely what many prospective Angelenos have been waiting for. It doesn't mean prices are crashing; it means they're finding a more sustainable level. We're stepping away from the almost unbelievable spikes we saw in recent years.

Home Sales: Buzzing or Stalling?

Despite the slight dip in prices, the number of homes changing hands in Los Angeles actually picked up speed. This is where December's report truly surprised many, especially considering it's typically a slower time of year.

For Los Angeles County, home sales saw:

A significant 20.2% jump in December from November 2025.
A modest 0.9% increase compared to December 2024.

And the Los Angeles Metro Area wasn't far behind, with sales up:

15.0% month-over-month.
2.2% year-over-year.

To me, these numbers highlight a crucial point: demand for living in LA is still very strong. Even with prices pulling back a little, people are still eager to make Los Angeles their home. This surge in sales, especially month-over-month, suggests that buyers who might have been sitting on the sidelines due to high interest rates or intense competition are now making their move. Tamara Suminski, C.A.R. President, put it well, saying, “As price growth eased toward the end of the year and mortgage rates fell to near-three-year lows, the stage is set for a more optimistic 2026.” I completely agree; this shows renewed buyer confidence.

Housing Supply: Are There More Homes on the Block?

The magic word in real estate often comes down to “inventory.” For Los Angeles, the housing supply paints a picture of stabilization rather than dramatic shifts.

Let's look at the Unsold Inventory Index, which tells us how long it would take to sell all currently available homes at the current sales pace:

Los Angeles County: 2.8 months in December 2025. This is down from 3.8 months in November 2025, but just slightly up from 2.7 months in December 2024.
Los Angeles Metro Area: 2.9 months in December 2025. This is down from 3.9 months in November 2025, and flat compared to 2.9 months in December 2024.

This tells us that while the overall statewide active listings still saw a year-over-year increase, the pace of that increase is slowing down. For us in Los Angeles, an inventory of around 2.8-2.9 months is still considered a pretty tight market, favoring sellers. However, coupled with the increase in sales, it suggests that homes aren't sitting around for too much longer.

So What does 2026 hold?

Based on these trends and C.A.R.'s optimistic outlook, seems Los Angeles is headed for a year with more stability and perhaps slightly more opportunity for buyers. While the glamour and appeal of LA won't ever truly make it a “buyers' market” in the traditional sense, the current climate suggests that carefully planned moves, whether selling or buying, could be more successful.

If you’re a buyer, paying close attention to interest rate fluctuations could give you an edge. If you’re considering selling, realistic pricing and a well-prepared home will be more important than ever. The key, as always in real estate, is to stay informed and work with someone who understands the nuances of our unique Los Angeles market.