Market Analysis for the Week of August 11, 2025 – Insights for Los Angeles & Beverly Hills, CA
Last week brought very few market-moving economic reports, leading to minimal changes in mortgage rates — welcome news for both buyers and sellers in Los Angeles and Beverly Hills. In a luxury market where even slight rate shifts can influence high-value transactions, stability is always beneficial.
Two noteworthy economic indicators released by the Institute of Supply Management were softer than anticipated. The ISM national services sector index declined to 50.1, while the national manufacturing index dropped to 48.0. Numbers above 50 indicate expansion, while those below point to contraction. Service firms continue to outperform manufacturers, and for our local market, this may mean that the robust service-driven economy in Beverly Hills — from high-end retail to hospitality — could help sustain buyer confidence. Meanwhile, higher tariffs on foreign goods could give a modest boost to domestic producers, which in turn may support renovation and construction activity in LA’s ultra-luxury home sector.
The Department of Labor reported that weekly jobless claims rose slightly to 226,000 from 218,000, just above expectations. While still far below pandemic-era spikes, this subtle increase is worth monitoring. In the Los Angeles area, strong employment in entertainment, tech, healthcare, and luxury services continues to drive real estate demand, particularly in prime neighborhoods like Beverly Hills, Bel Air, and Holmby Hills.
On the trade front, the U.S. deficit — which had surged to a record $140 billion in March during pre-tariff purchasing — has now moderated. June’s figure was $60 billion, below forecasts, indicating a return to more typical import/export levels. This easing of trade tensions could be good news for the Beverly Hills luxury home market, where many properties are finished with imported stone, custom cabinetry, and high-end European appliances that had been subject to higher costs.
Major Economic News Due This Week
Looking ahead, investors — including those active in Los Angeles luxury real estate — will keep an eye on inflation data and Federal Reserve commentary for clues about future interest rate movements.
Key releases include:
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Tuesday: Consumer Price Index (CPI), a key measure of inflation. Rising CPI can lead to higher mortgage rates, so this is especially important for luxury buyers considering large financed purchases.
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Thursday: Producer Price Index (PPI), which tracks wholesale inflation, often influencing construction and renovation costs in the competitive Beverly Hills housing market.
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Friday: Retail Sales and Import Prices — critical indicators since luxury spending and high-end imports are central to our local economy. With Beverly Hills being a global shopping destination, retail health is closely tied to the confidence of high-net-worth buyers.
Local Perspective:
Beverly Hills and Los Angeles remain among the most desirable real estate markets in the world, attracting both domestic and international buyers. Stable mortgage rates paired with a strong local service economy mean now could be a strategic moment to act — whether upgrading to a larger estate, securing an investment property, or locking in favorable financing before any potential interest rate hikes later this year.
If you’d like a customized market analysis specific to your property or neighborhood, I can provide detailed insights tailored to your home’s value and the current buyer pool in Beverly Hills and greater Los Angeles.
Contact: 310-777-6342