Will L.A. Home Prices Drop? Here’s What the Market Is Really Doing

Despite rising inventory and a cooling pace of buyer activity, the Los Angeles County housing market shows no signs of a dramatic price plunge. Instead, we're seeing a slow but steady shift toward normalization—an important distinction that both buyers and sellers should keep in mind.

MARKET TIME SEES SLIGHT IMPROVEMENT, BUT REMAINS ELEVATED 

Over the past two weeks, the Expected Market Time—the number of days it would take to sell all current listings at the existing rate of demand—has slightly improved, ticking down from 128 to 126 days. While that shift is small, it’s notable as the first improvement since May. Still, 126 days is a high reading for this time of year.

For context, one year ago, homes were selling in about 89 days. Prior to the pandemic, during the more balanced 2017–2019 market, homes averaged just 70 days on the market. By comparison, today’s pace highlights a much slower-moving landscape.

BUYER DEMAND TICKS UP SLIGHTLY

There was also a modest increase in demand across the county, with 43 more pending sales recorded in the past two weeks. That’s a 1% increase—not a game-changer, but enough to reflect that buyers are still active, even in the face of high mortgage rates.

Much of what happens next will depend on key economic reports set to be released shortly, including the Producer Price Index (PPI), the Consumer Price Index (CPI), and upcoming retail sales data. These numbers will directly influence mortgage rates, which remain a primary factor in buyer hesitation.

LOCAL MARKETS SHOW BIG DIFFERENCES BY AREA AND PRICE POINT

Market performance continues to vary significantly by neighborhood and price point. Areas like Burbank and Baldwin Park are seeing faster turnaround times, with homes selling in just 69 days on average. On the luxury end, places like Bel-Air are experiencing dramatically slower movement, with homes sitting for as long as 525 days.

Median list prices also span a wide range, from around $700K in cities like Azusa and Baldwin Park to nearly $6 million in Beverly Hills. As expected, higher-end properties are taking longer to sell, with buyers in those markets being more cautious and selective.

WHAT THIS MEANS FOR BUYERS AND SELLERS 

For sellers, this market requires patience—but that doesn’t mean homes aren’t selling. Well-priced, well-prepared homes are still moving, especially when paired with smart marketing strategies.

For buyers, today’s slower pace offers a key advantage: time. Without the bidding wars and breakneck competition that defined the market just a few years ago, many buyers are finding opportunities to negotiate or take a little longer to make decisions.

SO WILL PRICES PLUNGE?

Based on the current data, the answer is no. What we’re seeing is a gradual correction, not a crash. Inventory is still limited, demand is steady (if not strong), and prices are holding firm in most areas. In other words, this is what a normalizing market looks like—not a collapsing one.

If you're curious about what this means for your specific neighborhood or property type, I’d be happy to run a custom market report. Every pocket of L.A. tells a slightly different story—and it’s always worth knowing where you stand.