Los Angeles Housing Market Sees Robust 21% Sales Surge in September

Los Angeles, CA - The Los Angeles residential real estate market experienced a significant upswing in September 2025, with closed escrow sales of existing single-family homes rising 20.9% from August, according to the California Association of Realtors (CAR). The increase, reported as approximately 21%, reflects a jump from roughly 4,800 homes sold in August to 5,800 in September, marking a 13.8% year-over-year gain from September 2024.

The surge in sales is attributed to a decline in mortgage rates, which fell to 6.4% in September from 6.8% in August, spurring buyer demand. CAR economists noted that this rate drop acted as a "magic bullet" for the market, with forecasts suggesting rates could ease further to 6.1% in 2026. The median sale price in Los Angeles County reached $983,230 in September, up 2.6% month-over-month and 5.6% from the previous year, signaling sustained price growth amid heightened activity.

Inventory remains tight, with active listings increasing marginally by 2.5% to approximately 28,500 homes, equating to a 3.5-month supply-well below the balanced market threshold of six months. Homes also sold faster, with the average days on market dropping 6.7% from 45 days in August to 42 days in September, indicating strong buyer competition.

While the sales boom supports current price levels and suggests modest growth of 3–5% into 2026, experts caution that affordability challenges, with a median price nearing $1 million, and potential mortgage rate increases could temper future gains. The market remains favorable for sellers due to low inventory, but buyers may find slight negotiating power as listings inch upward.

CAR data also highlights a broader statewide trend, with California home sales rising 0.9% month-over-month, though Los Angeles' urban appeal amplified its gains. Observers note that seasonal factors, with September typically seeing a post-summer boost, contributed to the surge, but the scale of the increase exceeds historical norms.

As Los Angeles' housing market heats up, stakeholders are watching whether inventory growth and rate trends will sustain this momentum into the traditionally slower winter months.

Sources: California Association of Realtors, Norada Real Estate