Los Angeles & Beverly Hills Real Estate Market Update – Week of August 18, 2025

The real estate market continues to shift as investors and homeowners watch inflation data and mortgage rates closely. For those considering buying or selling in Los Angeles and Beverly Hills, understanding the economic backdrop is essential to making informed decisions.

Inflation Data and Market Sentiment

Last week, investors focused heavily on inflation reports. The Consumer Price Index (CPI) rose 0.3% in July, in line with forecasts, and came in 3.1% higher than a year ago—the highest annual rate since February. The Producer Price Index (PPI), which measures producer costs, surprised markets by jumping 0.9%—the largest monthly increase since June 2022.

While the stronger PPI number raised eyebrows, the overall impact on mortgage rates was minimal, and rates finished the week nearly unchanged. With inflation still well above the Federal Reserve’s 2% target, investors now anticipate a 25 basis point Fed rate cut in September, followed by another cut before year-end.

For Los Angeles luxury buyers, particularly those eyeing Beverly Hills estates, these inflation numbers matter. Elevated inflation means the cost of financing remains higher than pre-pandemic levels, which directly impacts jumbo loan affordability—a key factor in our ultra-luxury market.

Consumer Spending and Real Estate Demand

Consumer spending continues to show resilience, with July retail sales up 0.5% from June and 3.9% higher year-over-year. Strength was noted in motor vehicles, home furnishings, and apparel—all tied to household wealth and confidence.

Here in Beverly Hills and the Westside of Los Angeles, this confidence is still being reflected in strong buyer activity for trophy properties. International buyers, in particular, remain interested in the stability of Los Angeles luxury real estate as both a lifestyle choice and wealth preservation strategy.

Mortgage Rate Snapshot – August 18, 2025

Rates remain elevated compared to two years ago, but are still favorable historically when adjusted for inflation. Key highlights:

• 30-Year Fixed: 5.875% (APR 6.05%)

• 15-Year Fixed: 5.000% (APR 5.17%)

• 30-Year High Balance: 6.000% (APR 6.18%)

• 30-Year Jumbo (up to $10M): 6.000% (APR 6.11%)

• 10/1 ARM (Purchase): 5.375% (APR 5.48%)

For Beverly Hills buyers purchasing homes in the $10M+ range, jumbo and super-jumbo financing remains available with competitive terms and flexible structures. Lenders are offering up to 80% loan-to-value (LTV) on loans as high as $10 million, and up to 96.5% LTV on smaller balances.

This financing environment is particularly relevant for clients purchasing in neighborhoods like Beverly Hills Flats, Holmby Hills, Bel Air, and Brentwood Park, where luxury properties frequently trade in the $10–30M range.

Local Real Estate Outlook – Beverly Hills & Los Angeles

While national inflation reports grab headlines, the Los Angeles luxury real estate market often marches to its own rhythm. High-net-worth individuals continue to see Beverly Hills and Bel Air as safe havens, especially during periods of economic uncertainty.

• Sellers should be mindful of pricing: while demand remains, buyers are cautious and value-driven. Proper positioning and global marketing exposure are essential.

• Buyers still have opportunities to secure trophy estates with favorable financing before the Fed makes deeper cuts that may re-ignite upward pressure on prices.

Looking Ahead

This week will be relatively quiet on the economic front, with Housing Starts (Tuesday) and Existing Home Sales (Thursday) on the calendar. For Los Angeles and Beverly Hills, housing data will give us more insight into whether inventory levels are starting to loosen and how quickly homes are trading in the $5M–$20M+ segments.

Final Thoughts

Whether you’re exploring a Mediterranean villa in Beverly Hills, a modern architectural in the Hollywood Hills, or a classic estate in Holmby Hills, understanding the intersection of mortgage rates, economic data, and local buyer sentiment is crucial.

If you’re considering buying or selling in Beverly Hills or greater Los Angeles, I bring 36 years of experience as a top agent, with proven success helping clients navigate both hot and shifting markets.

Call me directly at 310-777-6342 to discuss your options and strategy for today’s market.