Is Now a Good Time to Buy Real Estate in Los Angeles?

If you’ve been watching Los Angeles real estate lately, you’ve probably noticed that it’s a mix of opportunity and uncertainty. Prices have cooled in some neighborhoods, mortgage rates remain stubborn, and yet — open houses still get crowded. So, is now actually a smart time to buy?

Let’s take a realistic look at what’s happening on the ground right now in LA.

Home Prices Have Stabilized, Not Crashed

Despite what social media headlines say, the Los Angeles real estate market hasn’t fallen off a cliff. According to MLS data, most neighborhoods have simply leveled out. That means buyers finally have a chance to negotiate without facing 20 offers on day one.If you’re coming in with strong financing or cash, you’re in a better position now than you’ve been in years. Sellers are open to discussions again — even in mid-tier markets like Sherman Oaks, Burbank, and Culver City.

Interest Rates Are the Wild Card

Yes, rates are higher than we’d all like, but that’s temporary leverage for buyers. Here’s why: fewer people are jumping in, which means you face less competition.If you find the right property now and refinance later when rates come down, you can lock in equity while everyone else is still waiting on the sidelines. Smart investors are already doing this — buying now, stabilizing rents or renovating, then refinancing within 18–24 months.

Inventory Is Low, but Serious Sellers Are Motivated

Los Angeles inventory remains tight overall, especially under $1.5 million. But here’s the catch — the sellers who are listing right now usually need to sell. That creates opportunity.If you’re prepared and have your financing ready, you can negotiate stronger terms or credits for repairs. And for investors, there’s real potential in small multifamily buildings that have been sitting a bit too long on the market.

Where the Opportunities Are in LA

Not every pocket is the same. The Westside still commands premium pricing, but East LA, North Hollywood, and parts of the Valley are showing movement.Commercial buyers are finding deals in retail and small office spaces — especially those exploring commercial real estate in Los Angeles for long-term investment.Residential buyers are targeting homes that need cosmetic updates — the kind you can actually build equity on quickly.

What to Watch for the Rest of 2025

Keep an eye on inventory trends and rate adjustments. If we see even a modest rate drop, demand will spike again almost overnight. Many buyers who paused in 2024 are just waiting for an excuse to re-enter. That’s why locking something in before that wave hits can make all the difference.

FAQs

Is Los Angeles real estate overpriced right now? Not across the board. Some luxury areas are still inflated, but mid-range homes and multifamily units have adjusted. Buyers now have room to negotiate — something that didn’t exist in 2021–2022.

Should I wait for prices to drop further? Most analysts expect a flat-to-slightly-upward trend for 2025. Waiting could mean paying more later once rates ease. Timing the market perfectly rarely works out.

What about buying investment property in LA? It’s still one of the strongest long-term markets in the country. Rents remain high, and the demand for quality housing isn’t going away.

What’s happening with commercial real estate? Certain sectors (like small office and retail) are softening, which is creating entry points for new investors. Industrial and multifamily remain resilient.

Want a quick read on cap rate and value for a specific property? Contact me — share the address and income/expense snapshot and I’ll send back a supported range.