The Los Angeles, CA metro area housing market in February 2025 presents a dynamic landscape with notable shifts in various metrics. The Median Sales Price has risen to $920,000, marking a 4.0% increase year-over-year. This upward trend in sales price is mirrored by the median Price Per Square Foot, which has increased by 4.6% to $610.27. However, the Median List Price remains unchanged at $999,000, indicating a potential stabilization in seller expectations.

Despite the stable list price, the Median List Price per square foot has surged by 7.2% to $638.64, suggesting that sellers are placing a premium on smaller, more efficiently utilized spaces. The number of Homes Sold has increased by 6.3% to 3,503, while Pending Sales have also seen a rise of 5.8%, reaching 4,736. This indicates a robust demand in the market, although the inventory has decreased significantly by 25.6% to 8,112, contributing to a tighter market environment.

The Months of Supply have dramatically decreased by 100.0%, now standing at 2.3 months, which underscores the competitive nature of the market. Homes are spending a median of 53 days on the market, reflecting a 10.0% increase in time compared to the previous year. This suggests that while demand is strong, buyers may be taking longer to make purchasing decisions.

The average sale to list ratio has slightly decreased by 0.5% to 100.0%, indicating that homes are generally selling at their listed prices. However, the percentage of Homes Sold above list price has declined by 4.5% to 40.6%, which may reflect a cooling in bidding wars. Price Drops have increased by 16.0% to 30.7%, suggesting that sellers are adjusting their expectations in response to market conditions.

Additionally, the percentage of homes going off the market within two weeks has decreased by 7.8% to 32.9%, indicating a slower pace in the market's turnover. This could be attributed to the increased Median Days on Market and the adjustments in pricing strategies by sellers.

Overall, the Los Angeles housing market in February 2025 is characterized by rising sales prices and a strong demand, despite a significant reduction in inventory. The market dynamics suggest a competitive environment with sellers adjusting to changing buyer behaviors and market conditions.