Families Return from Vacations to Find LA Real Estate Market Still in Slump
As summer comes to an end, the LA real estate market continues to struggle with a 48.2% decrease in contracts signed last week, signaling a potential hangover for the city's high-end market.
According to a report compiled by Marcy Roth of Douglas Elliman's Eklund Gomes team, the total value of homes that went into contract last week in Los Angeles County's high-end market was $126.2 million, a significant decline from the same period last year. This decrease can be attributed to the signing of only 19 contracts last week, nine less than the previous year.
While some market watchers may be hopeful that the end of summer vacations and the return of students to the classroom will bring a rebound, the numbers suggest otherwise. The slowdown in the high-end market is indicative of a larger trend in LA's real estate market, which has been struggling for the past few months.
"The market is showing signs of weakness," said Roth. "Buyers are hesitant to make large investments in the current economic climate, especially with the uncertainty surrounding the upcoming election."
This slowdown in the market is also reflected in the decrease in asking volume, with properties averaging a lower price compared to the same period last year. This trend is concerning for developers and real estate agencies, who rely on high-end contracts to drive profits and sales.
Despite the current slump, some experts believe that this could be a temporary downturn and that the market may pick up again in the coming months. However, others remain skeptical https://therealdeal.com/la/2025/09/02/la-resi-slowdown-leads-to-48-drop-in-contract-volume/