The Big Buyer Backoff: How the California Market Has Changed Since 2024
In 2024, high home prices and steep mortgage rates kept many California buyers on the sidelines. Nearly 60% said these factors, and the frustration of losing bidding wars, were their main reasons for stepping away.
But in 2025, only 32% of buyers report frustration over failed offers, down sharply from 56.2% last year . Instead, more buyers are citing market uncertainty and financial concerns as their main reason for postponing searches. Affordability has improved in some regions thanks to price softness, more options, and less competition.
A positive shift for buyers: more seller flexibility. In the past, about 35% of homeowners delayed selling because of low mortgage rates, often called “golden handcuffs.” In 2025, that’s fallen to 16%, meaning more sellers in Culver City and the greater Los Angeles area are willing to list… even if it means taking on a higher rate. This change is bringing more inventory and choices to the market.
Rising Inventory and Price Adjustments Across California
Why More Homes Are on the Market
Many sellers who were “locked in” by historically low rates are finally ready to move. While new construction is slowing, the number of existing homes listed has surged. This is especially true in regions like Southern California.
In Culver City, Westside Los Angeles, and other competitive neighborhoods, this increase is giving buyers more options and forcing sellers to rethink pricing strategies.
Why Prices Are Dropping in Some Areas
When buyers hesitate due to economic uncertainty, homes tend to stay on the market longer. This leads to price reductions, particularly in areas with higher inventory. In parts of the South and West, this trend is already visible. And, Los Angeles real estate is not immune.
Consumer Confidence: The Hidden Market Driver
While mortgage rates get most of the attention, California’s housing market is often driven more by consumer sentiment. How people feel about the economy, their jobs, and their financial future shapes selling behaviors.
In mid-2025, confidence levels remain near historic lows. These are weighed down by concerns about tariffs, job security, and the possibility of a recession. When people feel uncertain, buyers delay purchases and sellers hesitate to list… or are reluctant to lower prices.
In areas like Culver City and Los Angeles County, sharp drops in confidence can lead to longer selling times and deeper price cuts.
Should You Sell Your Culver City or Los Angeles Home Now—or Wait?
Reasons to Sell Now
- Inventory is up, giving buyers more options but also forcing sellers to compete.
- Acting before mortgage rates drop further could help you avoid a flood of new listings later.
- If you have significant equity and aren’t tied to a low-rate mortgage, selling now may offer opportunities that didn’t exist during the peak pandemic market.
Reasons to Wait
- About 75% of buyers and sellers expect both prices and rates to fall.
- A rebound in consumer confidence could bring more buyers and better terms.
- If you’re not in a rush, monitoring local inventory trends and broader economic shifts could position you for a stronger sale.
Key Takeaways for California Homeowners
- Economic and political uncertainty, not just interest rates, are shaping the 2025 market.
- If you’re thinking of selling in Culver City or Los Angeles, stay flexible on pricing and staging.
- Watch more than just rates… track consumer sentiment, job trends, and buyer confidence.
The most successful sellers in California’s 2025 market will be those who adapt quickly to changing conditions. For some, selling now and pricing strategically could mean closing a deal before the next big shift. For others, waiting could open the door to stronger offers once the market feels more secure. If you need help in selling your property, contact the Martin Feinberg team today.