History Shows the Housing Market Always Recovers – What It Means for Beverly Hills and Los Angeles

As the real estate market slows, many homeowners who didn’t sell at the price they were hoping for are choosing to pull their properties off the market. According to Realtor.com, the number of homes being withdrawn has jumped 38% since the start of the year and 48% compared to last June. To put it simply, for every 100 new listings that hit the market in June, about 21 were taken down.

If you’ve made that same decision, you’re not alone—and it’s natural to feel frustrated. It’s tough when the market doesn’t seem to reward your timing. But history shows one powerful truth: real estate markets always recover.

History Repeats Itself: Proof from the Past

This isn’t the first slowdown. Each time, the market has eventually bounced back stronger:

• 1980s: Mortgage rates soared above 18%. Buyers vanished, sales stalled, and the market froze. But when rates eased, activity roared back.

• 2008: The Great Financial Crisis caused one of the harshest housing downturns in history. Prices and sales dropped sharply, yet recovery followed as the economy stabilized.

• 2020: At the start of the pandemic, sales stopped almost overnight. But the comeback was faster than anyone predicted, with record demand once restrictions lifted.

The lesson is clear: no matter the cause, housing markets recover.

Today’s Market: Beverly Hills and Los Angeles in Context

Here in Beverly Hills, Bel-Air, and across Los Angeles, the slowdown has been especially noticeable in the luxury sector. Rising mortgage rates since 2022, combined with elevated prices, have made affordability challenging nationwide. While luxury buyers in Beverly Hills often purchase in cash, many still pause during uncertain times, creating temporary slowdowns in sales velocity—even in the high-end neighborhoods of the Platinum Triangle and Hollywood Hills.

However, Los Angeles is unique compared to other U.S. cities:

• Global Demand: International buyers—whether from Asia, the Middle East, or Europe—continue to see Beverly Hills as a safe haven for capital and lifestyle.

• Lifestyle Drivers: The enduring appeal of Los Angeles—its climate, schools, entertainment, and prestige—means demand never disappears for long.

• Scarcity of Trophy Properties: Iconic estates in Beverly Hills Flats, Holmby Hills, or Trousdale are irreplaceable, which creates resilience even during market pauses.

The Outlook: Signs of a Recovery Ahead

National forecasts point to a rebound starting in 2026.

• In 2024, about 4.07 million homes sold.

• 2025 projections show sales holding steady at 4.01 million.

• But by 2026, experts like Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) forecast sales will climb to around 4.57 million.

That’s a meaningful increase—powered largely by the expectation that mortgage rates will ease. For Los Angeles luxury real estate, that translates into more buyers re-entering the market, fresh competition, and rising activity in neighborhoods like Beverly Hills, Bel-Air, Holmby Hills, and the Sunset Strip.

What This Means for You

If you’ve paused your moving plans, it’s understandable—you made the best decision for today’s market. But don’t lose sight of the bigger picture: housing slowdowns don’t last forever.

Here’s the key: when the first signs of recovery appear, timing will be everything. Relisting at the right moment could mean capturing pent-up demand and securing a stronger price.

That’s why working with a seasoned Beverly Hills real estate agent is essential. An experienced advisor can:

• Track early market indicators of renewed demand.

• Strategically time your relist for maximum visibility.

• Position your home to stand out as buyers return.

Bottom Line

The Beverly Hills and Los Angeles housing markets have weathered downturns before—and every time, they’ve come back stronger. If you’re waiting on the sidelines, remember: the next wave of buyers will arrive, and when they do, you’ll want to be ready.

Let’s connect today so you’re positioned to relist with confidence and take advantage of the recovery ahead.