HAPPY APRIL 2025:
Greetings Once Again:-)
Clients have asked me about the market so far in 2025 and how it's being affected by all the changes we are all experiencing. One thing I can tell you is that the market is not collapsing,. Its slow, but still slightly ahead of last year in sales. We are expecting a busy summer as people tend to buy and move then The buyers who can afford to buy, are slowly getting used to the fact that interest rates are not dropping back down, anytime soon. The larger difficulty will be in finding affordable fire insurance in the future.
The State of California will need to listen to the insurance companies, so that the win win will keep insurance companies in California as they have the option to leave. Here’s an updated overview of the key 2025 market sales trends so far in Los Angeles, Santa Clarita, Santa Monica, and Woodland Hills, including the latest statistics and my thoughts about interest rates, tariffs, and affordability.
Los Angeles County
Median Home Prices: As of March 2025, the median home price in Los Angeles County is $852,190, marking a 3.0% increase over the past year. (Zillow)
Days on Market: Homes in Los Angeles County spend an average of 26 days on the market, reflecting a slight increase from last year. (Redfin)
Closed Sales Volume: In January 2025, approximately $7.37 billion in residential real estate transactions were recorded in Los Angeles County, reinforcing the area’s continued status as a top destination for high-value properties. (Remax)
Market Outlook: According to the Wall Street Journal, Los Angeles continues to attract high-net-worth individuals, sustaining its demand despite ongoing challenges with inventory. The demand for luxury properties remains strong, which could keep upward pressure on pricing.
Santa Clarita
Median Home Prices: The median home price in Santa Clarita for March 2025 is $785,000, showing a 1.9% increase compared to the previous year. (Compass)
Days on Market: Homes in Santa Clarita are selling after an average of 38 days, an improvement from 43 days in March 2024. (Zillow)
Closed Sales Volume: 110 homes sold in Santa Clarita in March 2025, consistent with sales from last year. (Redfin)
Market Insights: The Los Angeles Times highlighted that Santa Clarita’s proximity to Los Angeles continues to fuel demand for rentals and sales, particularly for young families and professionals. However, rising interest rates could slow some buyers, impacting future sales volume.
Santa Monica
Median Home Prices: In March 2025, the median home price in Santa Monica was $2,074,500, reflecting a 25.3% year-over-year increase. (Remax)
Days on Market: Homes in Santa Monica are now selling after an average of 43 days, significantly improving from 98 days last year. (Zillow)
Closed Sales Volume: In March 2025, 72 homes were sold in Santa Monica, a notable increase from 27 homes sold in March 2024. (Zillow)
Market Insights: According to the New York Times, Santa Monica’s luxury real estate market remains resilient, with notable interest from tech executives and investors looking to capitalize on the area’s scenic location and quality of life. As the area becomes more competitive, we will likely see continued price pressure in the coming months.
Woodland Hills
Median Home Prices: As of March 2025, the median home price in Woodland Hills is $1,200,000, a slight decrease of 1.2% from the previous year. (Compass)
Days on Market: Homes in Woodland Hills are taking an average of 68 days to sell, a rise from 55 days last year. (Redfin)
Closed Sales Volume: There were 168 homes sold in Woodland Hills in March 2025, marking an increase from 138 homes sold during the same period last year. (Zillow)
Market Insights: According to the Wall Street Journal, Woodland Hills is increasingly attracting investors looking for properties with good rental potential, especially as nearby markets become more saturated. With the area’s convenient location and desirable amenities, it’s expected to remain a substantial market for buyers and renters.
SUMMARY:
Impact of Recent Tariffs: The 25% tariff on steel and aluminum has started affecting construction costs, especially in Los Angeles, where steel is a significant component in new home construction. These higher costs could lead to increased home prices and slower construction over the next few months. The Los Angeles Times recently reported that higher material costs could delay significant development projects, putting further strain on the inventory of new homes. (Los Angeles Times)
Upcoming Insurance Premium Increases: Homeowners should expect insurance premium hikes in approximately 10 months as insurers adjust for the increased risk following recent wildfires in the region. This aligns with findings from the Wall Street Journal, which noted that insurers are factoring in rising disaster-related risks, particularly in wildfire-prone areas like California. (Wall Street Journal)
Consider these trends to make more informed real estate decisions in the future. Please get in touch with me if you need further insights or assistance with your real estate needs.
