Just about everyone loves to travel. Something is exciting about climbing aboard an airplane in anticipation of a much-needed vacation, often to some new and unfamiliar destination. After checking their bags and making their way through security, many travelers glance up at the electronic departure board only to find that their flight, along with most other flights, has been delayed. The delay may last an hour, or stretch on for several hours. Some flights may even be canceled, forcing travelers to scramble and make alternate arrangements. The excitement in flying quickly turns to frustration as the wait unfolds from an uncomfortable airport chair.
Many sellers are experiencing a similar delay. The excitement of coming onto the market, expecting to sell within the first few weeks, has turned to frustration as the wait unfolds to secure a buyer willing and able to write a purchase offer. After many showings and an open house or two, it’s crickets… no offers. Gone are the days of the COVID real estate market, from June 2020 through May 2022, when nearly every home sold instantly. The issue today is that buyer activity is low due to affordability constraints, and seller competition is at its highest level in years.
More than two-thirds of all available homes (69%) have been exposed to the market for at least 30 days. An eye-catching 47%, nearly half, have been lingering on the market for over two months. As expected, homes in the luxury ranges above $2 million are taking the longest to sell, with at least 47% on the market for two months or longer.
Yet, there are plenty of sellers in the more affordable ranges who are sitting on the market waiting for a buyer to come along and write a purchase offer. Below $750,000, 49% of the market has been waiting at least 60 days without success. From $750,000 to $2 million, between 40% and 44% have been waiting for two months or more.
Over the past few years, the Los Angeles County housing market has progressively slowed. Ever since rates climbed above 6% in September 2022, demand dropped substantially and has not changed much from year to year. Yet, more homeowners decided to sell each year, resulting in a higher inventory of available homes. The inventory climbed from 7,708 homes in mid-July 2023 to 15,021 homes today, an increase of 95%. At the same time, demand (a snapshot of the number of new pending sales over the prior month) reached 3,780 pending sales in mid-July 2023, compared to 3,523 today, a 6% decline. As a result of an increased supply and slightly lower demand, the Expected Market Time (the number of days it takes to sell all Los Angeles County listings at the current buying pace) increased from 62 days in mid-July 2023 to 128 days today, more than double.
With unyielding low demand and heightened seller competition, many sellers have been sitting on the market for a very long time. Housing has reached the mid-point of the Summer Market. By the end of August, after the kids have gone back to school, housing will transition to the Autumn Market. The Spring Market, the busiest time of the year for pending sales activity, is in the rearview mirror. The window of opportunity to take advantage of the second best time of the year, the Summer Market, is closing. With so many sellers lingering on the market, many are opting to throw in the proverbial towel and pull their homes off the market.
From January through June, 14,645 sellers pulled their homes off the market, up 12% compared to 2025, up 88% compared to 2024, and up 126% compared to 2023. That 14,645 homes pulled off so far this year represents 97% of the current number of homes available for sale. Cyclically, an elevated number of homes are pulled off the market for the remainder of the year, dipping a bit in November, and then surging in December.
Due to the level of seller competition, sellers must prepare their home for sale carefully. Precise, methodical pricing based on all pendings and recent closed sales activity is one of the most crucial steps in securing a successful outcome. When a home is priced well and is in turnkey, ready-to-move-into condition, homes sell fast, even in today’s sluggish market. In June, 1,503 of the 4,311 closed sales sold within the first two weeks (35%). Price, condition, location, upgrades, and amenities all factor into the difference between success and languishing on the market.
The Los Angeles County housing market has entered the “lull phase” of the year, when housing has reached a slower pace, homes linger on the market for longer, and more sellers pull their homes off the market. Today’s sellers have a choice: price their homes according to their Fair Market Value to secure a successful outcome, or throw in the towel and take the for-sale sign down.
