Will homes in LA ever get cheaper than this?
Rates are up. Prices feel strange. But here’s the truth no one wants to hear: homes in Los Angeles might never be this affordable again. Not because of some scare tactic. Because of how the market actually works here.
Table of Contents
- Why Everyone Is Waiting - and Why That’s Risky
- The LA Real Estate Myth: Price Drops Are Coming
- A Real Buyer Case Study: Acting When Others Hesitate
- Why Timing the Market Is a Fantasy
- Should You Buy Now or Wait? How to Run the Math
- Frequently Asked Questions
Why Everyone Is Waiting - and Why That’s Risky
Interest rates are higher than we’re used to. Prices feel detached from logic. So it’s natural that many would-be buyers are on pause, hoping for a more obvious signal to jump in.
But here’s what most don’t realize: when the signal finally comes - when rates drop, when the media gives the green light - it’ll already be too late.
The LA Real Estate Myth: Price Drops Are Coming
People think LA will behave like the rest of the country. It won’t. Why?
- There’s not enough inventory.
- There’s not enough land to build.
- And there’s too much global and local demand.
The result? Real price crashes in LA’s most desirable neighborhoods are rare. When they happen, it’s usually due to something external - like policy shifts or black swan economic events. Even then, the dips are short-lived.
A Real Buyer Case Study: Acting When Others Hesitate
One of our clients was waiting for a correction. We kept looking anyway. Eventually, a $2.2M listing with lots of interest dropped to $2M. Then fear hit the market—fast. Tariffs, stock market panic, buyers pulling out. We moved in aggressively at $1.9M.
Appraisal? $2.15M. They walked into $250,000 in equity. On day one.
This wasn’t luck. It was readiness. Courage when others got spooked. The perfect example of Buffett’s timeless rule: “Be fearful when others are greedy, and greedy when others are fearful.”
Why Timing the Market Is a Fantasy
If rates drop, demand spikes. More buyers flood back in. Bidding wars return. Contingencies get waived again. And “waiting” costs you more than just money - it costs you leverage.
Don’t mistake clarity for affordability. A calm market feels safe, but by the time it feels obvious, you're no longer early. You’re chasing.
Should You Buy Now or Wait? How to Run the Math
You don’t need to rush. But you do need to understand what’s likely to happen versus what you hope will happen. Most buyers aren’t waiting for a better market - they’re waiting for someone to tell them what to do.
That’s why we help our clients run the math. Not just on what they can afford, but what kind of market they’re actually in - and what strategy works best for them.
If you want to pressure-test your thinking, we can talk it through. Quietly. Intelligently. No sales pitch - just strategy.
Frequently Asked Questions
Are LA home prices going to drop in 2025?
Not in the way most buyers hope. While some areas may soften slightly, high-demand neighborhoods are still facing tight inventory and strong demand. Major price dips are unlikely unless a large economic shock hits.
Should I wait for interest rates to drop before buying?
Waiting for lower rates could backfire. If rates drop, more buyers flood the market - pushing prices higher and reducing your negotiating power. It's smarter to negotiate price in a quiet market than to compete in a hot one.
What if I buy now and the market shifts?
Buy the right home, at the right price, with a plan. If you’re not stretching your budget and you’ve thought through your timeline, short-term shifts won’t derail your long-term equity. Strategic buying always beats reactive waiting.
What makes LA real estate different from other markets?
Scarcity. Los Angeles has limited buildable land, strong local and international demand, and zoning restrictions that limit supply. That creates long-term price resilience even during broader downturns.
How can I know if it’s the right time for me to buy?
Forget the headlines. Start with your own numbers, goals, and timeline. Then look at what the market is actually doing - not what it might do. From there, we can build a strategy that fits.
Curious if you're waiting too long?
Book a 20-minute strategy call . We'll run the numbers on your buying power, pressure-test your assumptions, and explore your best move - calmly, privately, and without any pressure.