Mortgage & Market Analysis – Week of September 1, 2025

Insights for Los Angeles & Beverly Hills Homeowners and Buyers

During a relatively light week for economic data, the spotlight was on inflation and mortgage rates, which held steady. For homeowners and buyers in Los Angeles and Beverly Hills, this stability offers a moment to reassess opportunities in both traditional and luxury real estate markets.

Inflation & Interest Rates – Impact on LA Luxury Buyers

The Federal Reserve’s favored inflation measure, the PCE price index, rose 2.9% year-over-year in July, the highest since February 2021. While still above the Fed’s 2% target, this controlled pace has kept mortgage rates from surging.

For Beverly Hills and Los Angeles luxury real estate, the takeaway is clear: affluent buyers, who are often less rate-sensitive, continue to see opportunities to negotiate. Sellers, however, must price strategically, as higher borrowing costs still affect the upper-tier mortgage market for buyers using financing on $10M+ estates.

New & Existing Home Sales – Local Insights

Nationally, new home sales in July exceeded expectations but were still 8% lower than last year, with median prices at $403,800, down 6%.

In Los Angeles and Beverly Hills, the story is different. Inventory of luxury estates remains constrained, particularly in coveted neighborhoods like the Beverly Hills Flats, Trousdale Estates, Holmby Hills, and Bel-Air Crest. Unlike national averages, the median price for luxury properties here is well above $5M, and for trophy estates, it easily surpasses $20M.

While national builders face challenges with supply, Beverly Hills new-construction homes—often custom Mediterranean villas, modern architectural estates, or French-inspired châteaux—continue to command top-tier pricing due to limited land availability.

Labor Market Trends – Why It Matters in LA

Unemployment claims remained steady at 229,000, a level consistent with pre-pandemic years. For Los Angeles’ real estate economy, this means stability in sectors like entertainment, tech, and professional services—all key drivers of demand for Beverly Hills luxury homes.

International buyers, particularly from Asia and the Middle East, continue to see Los Angeles as a safe haven, and steady employment data reassures them that the local economy is resilient.

Looking Ahead – What LA & Beverly Hills Sellers Should Know

This week, investors are watching:

• Manufacturing Index (Tuesday) – National economic health impacts broader market sentiment.

• Services Sector Index (Thursday) – Particularly relevant in LA, where entertainment, tourism, and professional services dominate.

• Employment Report (Friday) – Jobs, unemployment, and wage inflation are critical for predicting mortgage rate movements.

For Beverly Hills and Los Angeles sellers, now is the time to act before potential economic shifts later this fall. With interest rates stabilizing, motivated buyers are still actively pursuing luxury homes, but they are discerning and value-driven. Homes priced correctly, staged elegantly, and marketed globally are seeing the strongest activity.

Key Takeaway for Beverly Hills & Los Angeles Real Estate

• Buyers: Stable mortgage rates create an opportunity to lock in financing for high-value purchases in prime neighborhoods.

• Sellers: While demand is strong, today’s buyers expect value. Properties that linger unsold risk price adjustments.

• Investors: With Los Angeles’ global appeal and Beverly Hills’ enduring prestige, luxury real estate remains one of the most stable asset classes, even amid economic uncertainty.

Whether you’re considering buying a $5M Beverly Hills estate or selling a $20M Bel-Air property, aligning with an experienced local broker ensures your property is positioned to maximize demand and achieve top results.