The Los Angeles, CA metro area housing market is experiencing a shift in 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 surged by 14.3% to $999,995, indicating a potential disconnect between seller expectations and buyer willingness.

Price Per Square Foot metrics also reveal interesting trends. The median Price Per Square Foot has increased by 3.0% to $582.13, while the Median List Price per square foot has risen by 10.8% to $650.48. This suggests that while sellers are optimistic about pricing, buyers are more cautious, possibly due to economic factors or affordability concerns.

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 seen a more significant decline of 5.9%, totaling 3,824. This reduction in Pending Sales could indicate a cooling market or increased buyer hesitation.

Conversely, New Listings have increased by 21.2%, reaching 6,020, and inventory has grown by 20.8% to 12,593. This rise in supply, coupled with a 70.0% increase in Months of Supply to 4.10, suggests that the market is shifting towards a more balanced state, potentially favoring buyers in the near future.

The Median Days on Market have increased by 10.0% to 60 days, reflecting a slower pace in sales. The average sale to list ratio has slightly decreased by 0.3% to 99.4%, and the percentage of Homes Sold above list price has dropped by 1.8% to 37.6%. These figures indicate that buyers are negotiating more aggressively, and sellers may need to adjust their expectations.

Price Drops have increased by 0.7% to 15.8%, further highlighting the need for sellers to be realistic about pricing. Additionally, the percentage of homes going off market in two weeks has decreased by 6.9% to 27.4%, suggesting that homes are taking longer to sell.

Overall, the Los Angeles housing market is exhibiting signs of moderation, with increased inventory and longer selling times. While sellers remain optimistic with higher list prices, buyers are exercising caution, leading to a more balanced market environment.