Los Angeles Residential Real Estate Surge Extends to Westside Neighborhoods, with Varied Trends in Santa Monica, Pacific Palisades, and West LA

Los Angeles, CA - The 20.9% month-over-month increase in residential sales across Los Angeles County in September 2025, driven by declining mortgage rates to 6.4%, has rippled into Westside neighborhoods like Santa Monica, Pacific Palisades, and West Los Angeles. While countywide data shows a rebound from summer slowdowns, local trends reveal a mixed picture: robust sales volume in Santa Monica, luxury price growth in Pacific Palisades amid post-wildfire recovery, and steady but modest appreciation in West LA. Experts attribute these shifts to low inventory (3.5 months' supply countywide) and buyer urgency, though affordability remains a challenge with median prices nearing $1 million regionally.

In Santa Monica, sales volume rose 22% year-over-year, with 344 homes sold in September compared to 282 in September 2024, aligning closely with the county's surge. The median sale price climbed to $1,849,999, reflecting a 21.3% annual increase from $1.6 million the prior year.

Homes sold in an average of 25 days, down from previous months, signaling heightened competition in this coastal enclave popular with young professionals and families. Inventory stood at 374 active listings, with 35 new additions in September, supporting the market's momentum but keeping it somewhat competitive (Redfin competitiveness score: 57/100).

Pacific Palisades, recovering from January's Palisades Fire, showed resilience in the luxury segment despite earlier disruptions.

Median sale prices reached $3.5 million in August (latest detailed data, with September trends holding steady), up 12% year-over-year and 13.7% from the prior month. Over the past year, 423 residential properties sold at a median of $1.83 million, with average price per square foot at $1,558 in May-trends that carried into September amid 27 new building permits issued by mid-year. Luxury sales climbed 7% annually, with trophy properties like a Jones-designed estate fetching $8.5 million, up from $7 million in 2024. However, inventory for high-end homes ($6.5 million+) lingers at 7 months' supply, and foreclosures ticked up slightly to 6 in July, tempering overall activity in this fire-impacted area.

West Los Angeles, encompassing areas like Mar Vista and Sawtelle, mirrored the county's stabilization with a median sale price of $1.8 million in June (September data pending, but up 9.9% year-over-year).

The market remains somewhat competitive (Redfin score: 58/100), with homes selling in about 67 days on average and prices per square foot steady at $916. Broader Westside trends, including a 9% dip in listing prices to $3.72 million in September, suggest slight cooling, but demand from local workers and families supports consistent appreciation. Regional forecasts predict 3–5% price growth into 2026, bolstered by 11,494 single-family building permits issued countywide over the past year-a 9.7% increase.

These neighborhood dynamics underscore the Westside's appeal amid broader LA County trends, where 4,870 homes sold in September (up from 4,100 year-over-year) at a median of $1,145,888. Economists from the California Association of Realtors forecast a 10.5% statewide sales increase in 2025, with modest price rises to $909,400, though wildfire recovery and affordability pressures (30% index for first-time buyers) could influence local trajectories.

Sources: Movoto, Redfin, California Association of Realtors, Norada Real Estate, ATTOM Data, Hollywood Reporter