The Los Angeles, CA metro area is experiencing a shift in its housing market dynamics as of January 2025. The Median Sales Price has decreased by 2.2% year-over-year, settling at $885,000. This decline contrasts with the Median List Price, which has seen a significant increase of 14.3%, reaching $999,995. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly leading to longer negotiation periods.

The median Price Per Square Foot has risen by 3.0% to $582.13, indicating a steady appreciation in property value on a per-square-foot basis. Meanwhile, the Median List Price per square foot has surged by 10.8% to $650.48, further highlighting the disparity between listing and selling prices.

In terms of sales activity, the number of Homes Sold has slightly decreased by 0.7% year-over-year, with 3,037 Homes Sold. Pending Sales have also declined by 5.9%, totaling 3,824. However, New Listings have increased significantly by 21.2%, reaching 6,020, which has contributed to a 20.8% rise in inventory, now at 12,593 homes. This increase in supply is reflected in the Months of Supply, which has grown by 70.0% to 4.10 months, indicating a shift towards a more balanced market.

The Median Days on Market have increased by 10.0% to 60 days, suggesting that homes are taking longer to sell. The average sale to list ratio has slightly decreased by 0.3% to 99.4%, while the percentage of Homes Sold above list price has dropped by 1.8% to 37.6%. These metrics indicate a cooling in the competitive nature of the market.

Price Drops have seen a modest increase of 0.7%, now at 15.8%, reflecting adjustments in seller pricing strategies. Additionally, the percentage of homes going off the market within two weeks has decreased by 6.9% to 27.4%, further emphasizing the extended time properties are spending on the market.

Overall, the Los Angeles housing market is experiencing a period of adjustment, with increased inventory and longer selling times suggesting a shift towards a more balanced environment. Buyers may find more opportunities for negotiation, while sellers may need to adjust expectations to align with current market conditions.