High-rise prices fall 8 percent, investor and all-cash shares climb, and sales concentrate unevenly across neighborhoods
Los Angeles’ condominium market is no longer riding the surge that followed the pandemic-era rebound, but it hasn’t tipped into distress either. The latest Polaris Pacific report shows a market that is softer at the margins, with prices edging down, sales volumes uneven by neighborhood and building type, and buyers taking a little more time—while still moving faster than historical balance would suggest.
For the three months ending Oct. 31, the median resale price slipped 0.9 percent from a year earlier to $907,000. Sales activity weakened alongside prices, with 948 existing condo transactions, down 5.6 percent year over year. Even so, the longer view remains supportive: the current median resale price is still well above the 2015–2025 average of $802,575. Dollar volume tells a similar story of cooling rather than collapse. Monthly condo sales peaked at $694 million in June 2021; by the month ending Oct. 31, that figure had declined to $397 million.
Polaris Pacific notes that performance varied notably by building height. Low-rise condominiums—four stories or fewer—posted a median of $933 per square foot, up 1.3 percent from last year. Mid-rise buildings (five to 12 stories) fell 1.6 percent to $856 per square foot, while high-rise condominiums, 13 stories and taller, saw the steepest adjustment, with prices down 8 percent year over year to $907 per square foot. That divergence suggests buyers are more price-sensitive in larger, amenity-heavy towers, where HOA costs and insurance pressures have risen, while smaller buildings have been more insulated.
However, geography mattered as much as structure. Koreatown recorded the largest declines on multiple fronts, with median price per square foot down 13.1 percent and sales volume plunging 48.2 percent. Downtown Los Angeles was the outlier on the upside: it was the only submarket to post an increase in sales, up 35.5 percent from a year earlier.
Despite the slowdown, demand signals remain firm in certain segments. In November alone, there were 386 existing condo sales, a 7.2 percent increase from last year. Pending activity also points to resilience, with 204 pending condo resales compared with a long-term average of 154.
The buyer profile has tilted toward capital-rich participants: for the three months ending Oct. 31, all-cash transactions represented 37.4 percent of sales, up from 33.8 percent a year earlier. Investors accounted for 37.3 percent of buyers, compared with 31.9 percent during the same period last year. As the report notes, “all-cash transactions represented 37.4 percent of sales,” underscoring how higher interest rates continue to reshape who can compete.
Homes are taking longer to sell, but not dramatically so. Average days on market stood at 48 days for the three months ending Oct. 31. A 60-day average is considered balanced, and Los Angeles has remained below that threshold since 2016. In 2024, the average was 41 days, highlighting a gradual but consistent slowdown rather than a sudden stop. Inventory, however, has been building. Months of Remaining Inventory reached 5.4 months, up from 4.1 months in 2024. Six months is generally considered balanced, and MRI has increased every year since 2020.
Meanwhile, new condo supply is not surging to meet—or overwhelm—demand. New construction activity averaged 24 condo sales, well below resale volumes. There are currently 822 new condominiums on the market, a 14.8 percent decline from last year, and 1,447 condos under construction across Los Angeles. By contrast, the apartment pipeline is far larger, with 26,552 units under construction citywide, underscoring how developers have favored rental over for-sale product in recent years.
Based on the report, a handful of projects did clear in 2024. Two condominium developments sold out, totaling 136 residences. Domaine Pasadena, at 39 S. Los Robles Ave. and developed by Adept Urban and Octane Development, accounted for 77 homes. The Four Seasons Residences at 9000 W. 3rd St., developed by Genton Property Group, sold 59 residences.
Overall, Los Angeles condos are adjusting to a higher-rate environment with selective price declines, especially in high-rise buildings and in neighborhoods like Koreatown, while low-rise product and Downtown sales show pockets of strength. Inventory is rising but remains just shy of balance, and the market continues to clear listings faster than long-term norms. With new condo construction limited and investors and cash buyers taking a larger share, the data point to a market that is cooling, not breaking—one that is recalibrating after a long run-up rather than reversing course.
