After a first quarter of relative instability due to the imposition of tariffs, the Palisades and Eaton Fires, and an unstable stock market, we predicted a second quarter of moderate growth. The available data now shows that the second quarter was indeed a period of growth in the Los Angeles real estate market, as prices continued to trend above last year. In this 2025 Q2 Los Angeles Real Estate Update we dive into the data, provide our insights into how the market has changed, and discuss our predictions for the remainder of the year.
Los Angeles Real Estate Market Sees Typical Summer Growth
As with prior years, the median sale price in Los Angeles saw a significant jump between the months of June and July. The median home price in Los Angeles reached just over $903,000 in June, an increase of about 1.7% from the same time in 2024. While this growth remains modest compared to pre-pandemic booms, it underscores the continued demand for housing in the region, even in the face of economic headwinds.
Notably, sales volume also climbed in Q2, with a 7.2% increase in the number of homes sold from April to June. The seasonal upswing, combined with greater post-wildfire clarity, has encouraged both buyers and sellers to return to the market.
The graph below depicts annual trends in the monthly median sale price of an existing single family home in Los Angeles.
Data courtesy of California Association of Realtors.
Mortgage Interest Rates Remain Steady As Fed Maintains Stance
The average rate on a 30-year fixed rate mortgage has continued to remain steady at just below 7%. The Federal Reserve maintained its benchmark interest rate in the 4.25–4.5% range throughout the quarter, signaling its continued caution amid mixed economic signals.
Although speculation about rate cuts persists and is urged by President Trump, Fed Chair Jerome Powell emphasized a wait-and-see approach with inflation gradually cooling and economic growth slowing, . As a result, the mortgage market has followed suit, offering little volatility during the quarter.
The graph below depicts Freddie Mac’s data on the average rate on a 30-year fixed rate mortgage, with the tail end depicting rates remaining steady under 7% throughout 2025.
Data courtesy of Freddie Mac.
What’s Next?
Looking forward, several key factors are likely to shape the trajectory of the Los Angeles real estate market in the second half of 2025. With the wildfire recovery process advancing, the stock market showing signs of renewed stability, and tariffs no longer dominating headlines, buyer confidence is expected to improve further. We anticipate continued—though measured—price growth, especially in high-demand neighborhoods and for entry-level housing.
Please call or email us at 213-973-9439 or info@esquirereb.com to further discuss our 2025 Q2 Real Estate Update for Los Angeles, or how Esquire Real Estate Brokerage can help you in the Southern California real estate market.
