As the Los Angeles condominium market pushed into mid-2025, signals of both strength and softening became increasingly evident. According to the latest Polaris Pacific report, the city posted a healthy increase in median resale prices, reaching $965,000 in May, up 5.5 percent year-over-year and well above the long-term average of $797,974. Yet, while prices rose, overall momentum in the new construction sector and monthly sales volume showed signs of deceleration. Analysts note that the city’s condo market appears to be settling into a transitional period defined by steady demand, rising inventory, and shifting buyer composition.
Despite the rise in median sale prices, the price per square foot (PSF) declined across all building types. Low-rise condos saw a four percent decrease to $921 PSF, mid-rises dropped 7.1 percent to $838 PSF, and high-rises fell 2.6 percent to $946 PSF. The disparity between overall price gains and falling PSF underscores a shift in buyer priorities toward larger or more spacious units, even as price growth continues on a headline level. Based on the report, Koreatown led the decline with the largest drop in PSF, falling 10.9 percent year-over-year. In contrast, the Westside experienced the most significant uptick in sales volume—up 19.5 percent—buoyed by renewed interest following the Palisades fire recovery.
A total of 941 existing condos were resold in the three-month period ending April 30, reflecting a 4.8 percent increase compared to the same period in 2024. However, May on its own told a different story, with only 337 condos sold, a 10.3 percent decline year-over-year. Based on the report, the dip marks a short-term pullback that could be attributed to seasonal variability or macroeconomic headwinds. Pending resales rose significantly to 278, far surpassing the historical average of 148 and suggesting renewed buyer interest moving into the summer. Despite the recent sales dip, this spike in pending activity could signal an upcoming rebound, especially as inventory builds and competition softens.
Months of Remaining Inventory (MRI) reached 4.8 months—up from 3.8 months in 2024 but still below the six-month threshold that defines a balanced market. Meanwhile, the average Days on Market (DOM) stood at 46, reinforcing the notion that properties are still moving relatively quickly despite rising supply. Together, these metrics suggest a market that is beginning to normalize but remains tilted slightly in favor of sellers.
Analysts note that cash buyers now represent 43.5 percent of all condo sales, up sharply from 36.1 percent the previous year. This increase points to growing confidence among affluent buyers and institutional players who are capitalizing on lower competition and relatively stable pricing. Investor activity also edged upward, now accounting for 35.9 percent of all transactions—an increase from 34.9 percent in 2024. These figures highlight a continued appetite for Los Angeles real estate as both a long-term asset and an income-producing investment, even amid tighter lending conditions.
Meanwhile, new construction sales lagged behind historical averages, with only 12 units sold in May compared to the monthly average of 25. This marks a continued slowdown in absorption for newly built condos, possibly reflecting buyer hesitancy around higher prices and ongoing delivery delays. However, the pipeline remains strong. There are 1,447 new condos currently under construction and 4,911 entitled for future development. At the same time, the city’s apartment pipeline continues to outpace condo supply, with over 26,000 units under construction and more than 22,000 entitled for future development. This imbalance may exert downward pressure on condo pricing if rental options continue to expand at a faster pace.
Despite the challenges, two prominent projects successfully sold out recently: Domaine Pasadena and the Four Seasons Residences in Beverly Grove. Domaine Pasadena, located at 39 S Los Robles Ave and developed by Adept Urban and Octane Development, sold all 77 units. The Four Seasons Residences, a luxury development by Genton Property Group at 9000 W 3rd St, closed out its 59 high-end units. Together, these projects accounted for 136 units sold out last year.
As Los Angeles enters the second half of 2025, analysts underline that the condo market finds itself in a complex position. Price gains and strong investor participation signal confidence, but rising inventory and weakening PSF figures point to increased buyer discernment. The balance of power is beginning to shift slightly, creating opportunities for those with cash on hand and a long-term view. While the pace of sales may fluctuate, the report reveals that the fundamentals of the Los Angeles condo market remain intact.
