Los Angeles Home Prices See Modest Quarterly Gains, Still Trail 2025 Highs

Los Angeles homes are selling for more than they did three months ago, but the city’s property market isn’t matching the breakneck price rises seen last spring. Median single-family prices in LA County reached $870,000 in June, according to the Multiple Listing Service, marking a 2.8% jump from March. That’s a rebound from the winter lull, but trails the 7.2% price leap logged in the second quarter of 2025.

The shift matters for both homeowners wondering about their next move and would-be buyers frustrated by last year’s bidding wars. With international instability rattling investors globally, L.A. property remains a favored asset, but local buyers face a different dynamic in 2026. Fewer cash offers are surfacing from speculative funds, shifting the playing field for Angelenos navigating house-hunting season.

Local Hotspots Lead Recovery

Some neighborhoods are outpacing the city’s sluggish average. Silver Lake – driven by ongoing condo redevelopments along Sunset Boulevard – has posted a 5% quarterly uptick, pushing median sales to $1.23 million, per Redfin’s local breakdown. East Los Angeles, buoyed by first-time-buyer initiatives from the Los Angeles Housing Department and the rollout of new ADU incentives, saw detached home prices climb 4.2% since March, averaging $732,000.

Luxury enclaves tell a different story. The Hollywood Hills and Bel Air, which drew an international wave in early 2025, have cooled as overseas buyers retreat. Recorded sales over $5 million fell by 12% compared to this time last year, MLS data shows. “We’re seeing more traditional escrow periods and fewer all-cash closings at the very top,” said one local agent who tracks the hills market.

Sellers More Realistic as Inventory Climbs

Data compiled by the California Association of Realtors supports the sense of a slower, more balanced market. Inventory in Los Angeles County increased 9% year-over-year by the end of June, with more listings clustered in mid-priced neighborhoods. “Buyers have a bit more breathing room,” said the association’s most recent market summary. Homes spent a median of 29 days on market – up from just 21 days last spring, but still brisk compared to the pre-pandemic average of 41 days in June 2019.

Mortgage rates remain the wild card. With 30-year fixed loans hovering between 6.5% and 6.7% since April, households qualified for less, nudging sellers to moderate price expectations. The pace of new construction – particularly accessory dwelling units in areas like Highland Park and Mar Vista – is keeping a lid on runaway growth in smaller starter-home segments, local city permit data confirms.

Industry watchers expect more of the same this summer: a steady, unspectacular climb in prices, unless interest rates drop sharply. Buyers who were squeezed out last year may find a less frantic landscape now, especially in neighborhoods like Echo Park and Eagle Rock, where fresh listings between $700,000 and $900,000 are again hitting the market. For sellers, “move-in ready” is the mantra, as homes needing significant updates lag behind. As LA continues to digest last year’s extremes, a return to relative stability is good news for both sides of the table.