July 2025 South LA County Market Update: Economic Shifts & What They Mean for Homeowners

As we head into the second half of 2025, the U.S. economy is showing signs of ongoing transition. From declining new home sales to changes in consumer confidence and job market indicators, it’s clear we’re in a period of adjustment. Here's what South LA County homeowners, buyers, and investors need to know right now:

🏠 New Home Sales Take a Dive

After a surge in April, new home sales across the U.S. dropped sharply in May—down 13.7% month-over-month and 6.3% from a year ago. This is the largest monthly drop in nearly three years, driven by high mortgage rates, increased inventory of existing homes, and buyer hesitation. In the South region specifically, sales dropped a significant 21%.

Even with builder incentives like mortgage-rate buydowns, buyers hit pause in May. On the bright side, with mortgage rates easing slightly in late May, we may see a rebound in sales through the summer—though still below last year’s levels.

📉 Consumer Confidence Slips

After a strong May, consumer confidence unexpectedly fell in June. The Conference Board reported a 5.4-point drop to 93.0. Concerns about the job market, rising costs, and global tensions (like the Iran-Israel conflict) may be fueling consumer hesitation. Fewer consumers planned to buy a home in June, but with interest rates declining, that sentiment could shift again soon.

👷‍♂️ Job Market Mixed

Initial unemployment claims dropped to 236k at the end of June, suggesting fewer layoffs. However, continuing unemployment claims rose to 1.97 million—the highest in over 3.5 years. In California, new claims slightly decreased, but more people are staying unemployed longer. Slower hiring, combined with economic uncertainty, means job market improvements may be slow to come.

🛒 Amazon Prices Hint at Inflation Ahead

A recent DataWeave report shows prices of China-made goods sold on Amazon jumped 2.6% since January, outpacing price increases for U.S., Mexican, and Canadian products. School and office supplies, baby products, and home furnishings saw the biggest spikes. This may indicate more inflation pressure in the coming months.

🏡 Property Insurance Still Climbing

While the pace of increases in home and auto insurance has slowed to 6% (from 13% last year), overall costs remain high. The median household’s property insurance payment has jumped more than 40% since 2021, now making up nearly 5% of annual income. With wildfire risks rising in California and rebuilding costs expected to go up, insurance premiums will likely continue trending upward into 2026.

📬 Thinking of buying, selling, or investing?
Every neighborhood in South LA County—from Inglewood to Carson, Hawthorne to Long Beach—feels these trends a little differently. Reach out to me directly for a local breakdown, and let’s chat about whether now’s the right time for you to make a move.