🏡 Market Cooling & Price Adjustments in Los Angeles: June Rebound Signals New Momentum

After months of slowing sales and price softening, the Los Angeles housing market made a comeback in June, according to the California Association of REALTORS® (C.A.R.). Existing single-family home sales rose 4.0% from May, reversing three straight months of declines. While prices remained relatively flat, the uptick in activity signals renewed momentum heading into the second half of 2025.

This rebound is reshaping buyer and seller behavior across the region. With more homes on the market and price growth stabilizing, conditions are becoming more favorable for buyers—especially those who’ve been waiting for leverage.

🧠 Shifting Buyer Psychology & Negotiation Leverage

June’s rebound hasn’t erased affordability concerns, but it has reinvigorated buyer confidence. As more listings hit the market and prices plateau, buyers are returning with a strategic mindset.

Key trends:

•  Negotiation is back: Buyers are leveraging contingencies and asking for concessions.

•  Confidence is rising: Stabilized prices and increased options are drawing buyers off the sidelines.

•  Sellers must adapt: Competitive pricing and flexible terms are now essential.

C.A.R. President Heather Ozur noted that “conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market and take advantage of increased negotiating power”.

📦 Inventory Surge & Its Impact on Pricing Dynamics

Inventory continues to climb across Los Angeles, giving buyers more choices and slowing price acceleration. According to C.A.R., the Unsold Inventory Index rose to 3.9 months in May, up from 2.7 months a year earlier. This trend persisted into June, contributing to a more balanced market.

What this means:

•  More listings = more leverage for buyers.

•  Price cuts are rising, especially in mid-tier neighborhoods.

•  Sellers must stand out with competitive pricing and strong presentation.

While the June rebound is promising, experts caution that mortgage rates and economic uncertainty may keep demand soft in the short term. Still, the shift suggests a more stable and strategic market ahead.

🔍 Final Thoughts: A Market in Motion

June’s rebound marks a turning point for Los Angeles real estate. Buyers are regaining confidence, inventory is rising, and sellers must adjust to a more competitive landscape. Whether you’re entering the market or watching from the sidelines, staying informed is your best asset.

📚 Explore more:

•  C.A.R. Market Update – June 2025

•  Los Angeles Housing Market Cooling – Norada

•  California Housing Forecast – C.A.R.