What’s Next for Real Estate in Los Angeles and Beverly Hills? Expert Forecasts for 2025

From shifting mortgage rates to fluctuating home prices, the 2025 housing market continues to raise questions—especially for buyers and sellers in luxury neighborhoods like Beverly Hills, Bel Air, and West Los Angeles. Is now the right time to make a move? What can you expect in the months ahead?

Fortunately, leading housing economists are starting to provide much-needed clarity—and the projections offer a cautiously optimistic outlook.

Business Insider recently noted:
“As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.”

Mortgage Rates Are Projected To Come Down Slightly

While we’re not expecting a dramatic drop, most analysts see rates decreasing modestly by the end of 2025. According to the latest projections, the average 30-year fixed rate is expected to settle around 6.39%, with forecasts ranging from 6.00% to 6.70%.

Even a fractional drop in interest rates can significantly reduce monthly mortgage payments—especially on high-value homes common in Beverly Hills and Bel Air. This improvement in affordability could be just enough to entice more luxury buyers into the market.

Just keep in mind: inflation, employment trends, and Federal Reserve policy could continue to impact the trajectory. So while timing the market perfectly is impossible, making a well-informed decision is key.

Housing Inventory Is Expected To Grow

One of the most promising trends is the rise in housing inventory. In Los Angeles, where demand has historically outpaced supply, we’re finally seeing more listings hit the market. Many homeowners are no longer willing to wait out the interest rate rollercoaster—they're ready to move forward.

Lance Lambert, Co-founder of ResiClub, says:
“The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”

For buyers, that means more selection. In exclusive areas like the Bird Streets, Trousdale Estates, or Holmby Hills, where inventory is limited, even a modest increase can create rare opportunities.

️ Home Price Growth Is Slowing

While housing prices are still expected to rise overall, the pace is cooling. The national average across seven major forecasts points to a 2.3% increase in 2025, with predictions ranging from +4.1% (Fannie Mae) to -1.9% (Zillow).

In Beverly Hills and other prime L.A. enclaves, prices are likely to remain stable or continue rising due to strong demand, limited land, and ongoing interest from global buyers. Still, this softening means less competition and more negotiating room—especially for buyers looking this summer.

Local Market Insight Matters More Than Ever

Real estate is hyper-local. A $3M home in Century City will behave very differently from a $20M estate in Beverly Hills Flats or a teardown in Brentwood Park. That’s why it’s essential to consult a local expert with deep knowledge of these nuanced markets.

✅ Bottom Line

If you're thinking of buying or selling in 2025, the outlook is promising:

• Mortgage rates may ease slightly
• Inventory is increasing
• Price growth is moderating

This combination creates strategic opportunities—especially in the luxury sector. Let’s connect to explore your options and take advantage of the latest shifts in the Los Angeles and Beverly Hills real estate markets.