The Two-Sided Market: What Every Luxury Buyer in Los Angeles Needs To Know

A Tale of Two Housing Markets: What Buyers Need To Know in Los Angeles and Beverly Hills

For years, the real estate headlines painted a clear picture: we were in an undeniable seller’s market. Homes across Los Angeles—and especially in prime neighborhoods like Beverly Hills, Bel-Air, and the Hollywood Hills—were selling swiftly, often with multiple offers well over asking. Buyers had to act fast and bid aggressively just to compete.

But recently, that dynamic has begun to shift. While certain ultra-luxury enclaves are still experiencing strong demand, others are seeing properties linger longer on the market. The result? A more nuanced landscape. Today’s market is no longer one-size-fits-all—it’s a tale of two markets, and understanding which one you’re buying or selling in is key to your real estate success.

What’s the Difference Between a Buyer’s Market and a Seller’s Market?
A buyer’s market occurs when the number of available homes exceeds buyer demand. In this environment, properties tend to sit on the market longer, sellers may reduce prices or offer concessions, and buyers have more room to negotiate—especially in neighborhoods where inventory has surged.

In contrast, a seller’s market happens when there are more buyers than homes for sale. Properties move quickly, prices escalate, and bidding wars are common. That was the case throughout Beverly Hills and much of Los Angeles from 2020 to 2022, when interest rates were at historic lows and demand far outpaced supply.

The Los Angeles Market Is Finding Its Balance

According to national data from Zillow, the U.S. housing market is transitioning from a hyper-competitive seller’s market toward a more balanced, neutral market. In Los Angeles, this balance is playing out differently across neighborhoods. While certain trophy properties in Beverly Hills Flats or Brentwood Park still command top dollar, other areas like Westwood, Miracle Mile, or Studio City are giving buyers more leverage.

Luxury buyers—particularly those looking in the $5M–$15M range—are finding more options today than they did just a year or two ago. Homes are staying on the market longer, and sellers are more willing to negotiate. This opens up new opportunities, especially for international or all-cash buyers who are prepared to act decisively.

Why Is the Market Shifting?
Inventory is a major factor. As more homes come to market—especially new construction or renovated estates—buyers benefit from greater choice, easing upward pressure on prices. According to Realtor.com, housing inventory in the West region, including California, has significantly increased over the past year. In contrast, the Northeast and Midwest remain tight on inventory, maintaining stronger seller’s market conditions there.

In Los Angeles, we’re seeing more micro-market variation than ever before. Beverly Hills may be cooling slightly for traditional Mediterranean villas, while ultra-modern architectural estates in Trousdale or The Bird Streets remain in high demand. That’s why working with a knowledgeable local expert is so crucial.

Why Your Local Market Knowledge Matters More Than Ever
Even in a city as glamorous as L.A., real estate is hyper-local. One block can make a substantial difference in value, desirability, and market dynamics. Whether you're purchasing a gated estate in Bel-Air, a Spanish Colonial Revival in Hancock Park, or a luxury penthouse in Century City, understanding the local data and buyer behavior is critical.

That’s where a top Beverly Hills real estate agent becomes indispensable. With 36 years of experience navigating all types of markets, I offer deep insight into neighborhood trends, buyer demand, and pricing strategies to ensure your success—whether you’re buying your dream home or selling a landmark estate.

Bottom Line: Your Market, Your Strategy
Whether you’re entering a buyer’s market, a seller’s market, or a neutral one, your real estate strategy should reflect the realities of your neighborhood. Let’s have a conversation about what’s happening in your specific area—whether it’s Beverly Hills, Holmby Hills, West Hollywood, or another part of Los Angeles. Together, we’ll create a plan that’s tailored to your goals and rooted in today’s market realities.

Ready to explore the market?
Contact me directly for a personalized consultation or to begin your luxury real estate journey at (310)777-6342.