Parts of it are, and parts of it are not. Sales are down and borrowing is expensive, but well-priced homes in the right locations are still drawing multiple offers while overpriced ones sit.
Everybody seems to have decided the market is terrible. Your neighbor says nothing is selling. The headlines say buyers have disappeared. And somewhere on the Westside, a perfectly good-looking house has been on Zillow so long you have started to recognize the furniture.
So explain this: why did one of my listings have 15 groups through the first weekend? And why can I have a buyer with up to $5 million to spend who still cannot find the right home? The market is bad, apparently. Nobody told the right houses.
I'm Keri White, President and Broker of Human Element Real Estate. Here is what the numbers say, what I am seeing in our transactions, and what it means whether you are buying or selling.
What Do the Headlines Get Right About the LA Market?
A lot, so let me not pretend otherwise. The California Association of Realtors reports that September sales of existing single-family homes in Los Angeles County were down 10.9% from a year earlier. Financing is also more expensive. Freddie Mac's October 29 survey put the national 30-year mortgage average at 7.24%, compared with 6.17% a year ago.
That is a tough environment. Fewer people are making moves, and the ones who do are carrying a bigger payment.
If Sales Are Down, Why Did the Median Price Go Up?
Because the mix of homes that sell matters. While LA County sales fell from a year ago, the county's median single-family price rose from $946,950 in August to $994,670 in September, according to C.A.R. That is almost $48,000 higher in a single month.
That does not mean every home suddenly appreciated 5%. It means a slower market is not automatically a market where everything is cheaper.
Why Do Some LA Homes Get Multiple Offers While Others Sit?
Price, mostly. I have seen properties with complications that would make most people hesitate, the kind of situation where you would expect buyers to run the other way, and they still drew multiple offers.
Meanwhile, a beautiful, move-in-ready home can sit because the asking price is just a little too ambitious. Buyers tour it, save it online, say they love it, and then do nothing. Or they send a low offer to see if the seller is desperate. Sometimes that works. Sometimes it does not.
Even a packed first weekend with tons of online interest does not always turn into an offer. Sometimes it takes one smart price adjustment to turn all that attention into a deal.
That is this market. Attention does not always equal action. People may love a house, but at the wrong number they keep scrolling. Make the price compelling and the conversations change.
If you are thinking about selling and watching a neighbor's listing sit, do not assume that tells you what your home will do. The competition, the price, and what buyers are responding to matter far more than anyone's blanket opinion about "the market."
What Is Happening With Condos in Los Angeles?
The condo segment is softer, and the data shows it. Wire Associates' September report found that condo sellers in Los Angeles and Orange County set a price-cut record. That is a real signal, and for buyers it can mean leverage that did not exist a year ago.
It does not mean every condo is easy to buy. I have a buyer looking for the right ocean-view condo with a budget of about $2 million to $5 million. That is not a small budget, yet the units with the view, layout, and location this buyer wants are incredibly hard to find. Meanwhile, I recently represented a cash buyer on a Santa Monica condo at $1,175,000. We saw a lot of condos, and the good ones went quickly.
Two buyers, two very different searches, in a market where some condos are reducing and others are exactly what somebody wants.
What Is a 2-1 Rate Buydown, and Can It Help a Buyer?
A temporary 2-1 buydown lowers your interest rate for the first two years, funded by a seller credit, before the rate returns to the note rate. Many buyers I meet have never heard of it.
In one scenario we explored, roughly $33,000 in seller credit could help create a first-year rate of 5.5% and a second-year rate of 6.5%, before returning to the note rate. On a $2 million purchase with 20% down, a 5.5% rate versus a 7% rate changes principal and interest by about $1,560 a month. That is the kind of difference that makes a buyer look at a house differently.
But a temporary buydown is not a $300,000 price reduction, and it is not permanent savings. You need to understand what happens in year three before you fall in love with year one. This is also where skilled negotiation can change the numbers.
So Is It a Good Market or a Bad Market?
When I hear "it's a bad market," my first question is, bad for whom?
If you are a seller pricing a home like it is still 2021, yes, this market may feel awful. If you are a buyer looking at a condo with three price reductions, you may have leverage you did not have before. And if you want a rare, truly special home in a neighborhood like Brentwood or Santa Monica with almost no alternatives, do not assume five other buyers are not looking at it too.
Here is what I think is happening. Homeowners who do not have to sell are often choosing not to. They have equity, sometimes a fantastic mortgage rate, and no urgency, which keeps some of the best inventory off the market. Meanwhile, buyers have become extremely selective. They will wait on the wrong house, but they will still compete for the right one.
So the market is not simply good or bad. It is a market that punishes assumptions. If you are buying, you need to know what is actually sitting, what is truly scarce, and where a seller might negotiate on price or terms. If you are selling, you need to know how your home compares to everything a buyer can choose today, not what your neighbor got two years ago.
"The market is bad" is not a strategy, and it is not a reason to make a multimillion-dollar decision without looking at your real options.
Frequently Asked Questions
Is the Los Angeles real estate market bad right now? It depends on the home and the price. LA County sales of existing single-family homes were down 10.9% in September from a year earlier, but well-priced homes in strong locations are still drawing multiple offers.
Are home prices dropping in Los Angeles? Not across the board. C.A.R. reports the LA County median single-family price rose from $946,950 in August to $994,670 in September, though a month-to-month move reflects which homes sold, not appreciation on every home.
Why are some LA homes getting multiple offers? Pricing, condition, and location. Homes priced to match what buyers will pay still attract competition, while overpriced homes tend to collect views and no offers.
Are condos harder to sell than houses in Los Angeles? Condos are softer right now. Wire Associates reported a record level of condo price cuts in Los Angeles and Orange County in September, though the best condos in the best locations still sell quickly.
What is the current 30-year mortgage rate? Freddie Mac's October 29, 2026 survey showed a 30-year average of 7.24%, down from 7.32% the week before.
Are you seeing homes sit in your neighborhood, or are the good ones still disappearing? If you are weighing a sale, send me your address and I will show you the actual competition, the price, and what buyers are responding to. Subscribe to KeriTV for more, or visit us at 1207 Montana Ave in Santa Monica.
Sources:
