Why So Many Homes in Los Angeles Aren’t Selling - and What It Means for You

by Matthew Hoult

Quick Take: The streets look busy with “For Sale” signs, but the slowdown is real. Here’s what longer days on market actually mean - and how to use them to your advantage.

Why Los Angeles Looks Busy But Isn’t Selling

You’re not imagining it - there really are more “For Sale” signs across Los Angeles. From Sunset to Ventura, listings are stacking up faster than homes are selling. The Los Angeles housing market looks active, but sales momentum is slowing beneath the surface.

California home sales pace: Stuck below 300,000 annualized units for nearly 30 months.
Average days on market (DOM): Up from about 50 to 61 year over year across Los Angeles.
Active listings: Up double digits statewide, even as new listings edge down.
National context: 2023 marked the slowest U.S. sales year in three decades, and recovery remains uneven.

The takeaway: More listings don’t mean more demand. What you’re seeing is time on market inflating visibility - making Los Angeles appear busier than it really is.

The Real Drivers Behind Rising Days on Market in Los Angeles

1. Insurance Shocks Are Reshaping the Market

Wildfire exposure and insurer withdrawals are rewriting buyer math across the Los Angeles housing market. Premium hikes and policy non-renewals are forcing some homeowners to sell sooner and pushing buyers to delay until coverage stabilizes.

Premium hikes and non-renewals push some owners to sell and force buyers to wait.

2. Policy Drag at the Luxury End

Measure ULA has changed how high-end sellers structure deals. A $5 million sale inside Los Angeles City now faces a transfer tax that can erase hundreds of thousands in profit. Closings above $5 million are down an estimated 50–70%, leaving more luxury listings to re-list or sit longer on the market.

3. Landlord Fatigue Among Small Owners

Rising maintenance costs and tighter rent regulations are prompting many small landlords to exit. Duplex and four-plex listings have increased even as absorption slows—a visible sign of fatigue within Los Angeles investment property segments.

4. Population Cross-Currents Creating Uneven Demand

International buyers are returning while domestic out-migration continues. The result is a hyper-local market: some Los Angeles zip codes heat up as others cool. Demand pockets shift street by street, stretching the average days on market.

Bottom line: These overlapping forces explain why there are more listings but fewer sales. The Los Angeles real estate slowdown isn’t about lack of interest—it’s about inventory aging in place as sellers, buyers, and policies adjust.

How Los Angeles Home Sellers Can Win When the Market Slows

This isn’t a green light - it’s a map. In a patience market, strategy beats speed. The following plays help home sellers in Los Angeles create competition, reduce days on market, and protect their final number.

1. Perfect Pricing Beats Bravery

In the Los Angeles housing market, overpricing gets punished as days on market rise. Price to create urgency, not silence.
Pro tip: Compare active and pending listings block by block, not by citywide averages. The right number builds demand and shortens the timeline.

2. Presentation Is a Profit Lever

Buyers decide within ten seconds. Fix friction points: lighting, paint, landscaping, staging, and small repairs. Strong presentation can shrink your days on market and stretch your sale price. Think of it as ROI-driven design, not decoration.

3. Model the Math Before You List

For $5 million-plus properties inside Los Angeles City, run multiple ULA transfer-tax scenarios and structure accordingly.
Underwrite insurance early so buyers don’t hesitate later. Clarity always beats surprises - and surprises kill deals.

4. Use the 3P Framework™

Price. Presentation. Popularity.
Sequence it - don’t wing it. This proven framework compresses time, maximizes exposure, and protects your net when the market slows.

Bottom line: In a patience market, sellers who align price and presentation to real demand win faster and stronger than those who wait for luck.

How Los Angeles Buyers Can Use Time to Their Advantage

When homes sit longer, buyers gain leverage. In the current Los Angeles housing market, patience pays off - time on market is the hidden variable that shifts power back to you.

1. Shop the Long-DOM Shelf

Homes listed for more than 45-60 days are statistically more negotiable. Use that time as leverage in your offer strategy.

“The longer it sits, the stronger your position.”

2. Target Friction Sellers

Look for motivated sellers: owners strained by insurance hikes, small landlords planning to exit, or luxury listings limited by Measure ULA tax math. Solve their problem and you improve your price.

3. Think in Micro-Markets

LA County averages don’t win deals. Analyze hyper-local comps, absorption rates, and recent price cuts. In Los Angeles real estate, what matters is who you’re competing with on your street, not across the city.

4. Play Offense with Clean Terms

If price is firm, win on certainty - shorten contingencies, prep airtight docs, and stay responsive. In a patience market, certainty is currency.

Bottom line: In the Los Angeles housing market, time isn’t a risk for buyers - it’s an advantage. The longer listings linger, the more leverage you have to negotiate better terms or secure hidden value.

FAQs

How long are homes staying on the market in Los Angeles?
In the Los Angeles housing market, the average days on market is around 61, up from roughly 50 a year ago. Homes are staying visible longer because listings are rising faster than sales.

Does Measure ULA still affect Los Angeles real estate sales?
Yes. Measure ULA continues to reshape the high-end Los Angeles real estate market. The transfer tax has reduced luxury closings by 50–70%, creating more re-lists and overhang above $5 million.

Are insurance costs impacting home sales in Los Angeles?
They are. Rising premiums and coverage withdrawals are pushing some owners to sell and forcing many buyers to re-price deals or delay purchases - a key factor behind longer days on market.

Is this a good time to buy or sell a home in Los Angeles?
Yes - for those who move strategically. Sellers who price and present correctly still achieve strong results, while buyers gain leverage on long-listed homes and motivated sellers.

What’s the outlook for the Los Angeles housing market?
Looking ahead, expect gradual recovery rather than a surge. Tight inventory and slower absorption continue to favor patient buyers and data-driven sellers who align strategy with local demand.

Get your 15-minute market clarity snapshot

Book a quick call. We’ll break down what’s really happening in your zip code, how long listings are taking to move, and what price range is actually selling - so you can plan your next move with confidence.