South LA County April Market Update: What Investors & Sellers Need to Know

March brought some much-needed momentum to the South LA County housing market after a sluggish start to 2025. As mortgage rates began to cool off slightly, buyers started making moves again—but the West Coast didn’t see the same bump in activity as other regions. Let’s break it all down in a way that actually makes sense for sellers and investors like you.

Home Sales: A Mixed Bag for the West

Nationally, new home sales climbed 1.8% in February compared to January and were up 5.1% year-over-year. However, the West Coast saw a 13.6% drop in new home sales, while the South and Midwest experienced solid gains. The culprit? Likely a mix of high home prices, affordability challenges, and cautious buyer behavior.

The good news? Lower mortgage rates and builder incentives—like price cuts and rate buy-downs—helped drive sales in other parts of the country, and we might see that same effect in South LA County as we move into the spring market.

Interest Rates: A Rollercoaster Ride

After hitting a three-month low in early March, mortgage rates have been moving sideways. They’re still significantly lower than early January’s peak, keeping buyers engaged. However, upcoming trade policy changes and economic reports could cause some market turbulence. If you’re thinking about selling or refinancing, now is the time to keep a close eye on rate trends.

What’s Happening with Inflation & Consumer Spending?

The Fed’s go-to inflation gauge, the Personal Consumption Expenditures (PCE) index, came in a little hotter than expected, rising 2.8% year-over-year. While not a deal-breaker for rate cuts, it signals that the Fed may hold off on any immediate action. Consumer spending also slowed down, which could mean buyers are being more cautious with their finances. For sellers, this means pricing your property right is more critical than ever to attract serious buyers.

Job Market & Real Estate Outlook

The labor market remains solid, with unemployment benefits holding steady. A strong job market generally supports housing demand, but potential economic uncertainties (like federal job cuts) could shift things in the coming months.

Meanwhile, real estate pros are feeling optimistic. According to the latest NAR survey, more sellers are expected to enter the market this spring. Inventory is growing, which means buyers will have more options—so sellers will need to price competitively to stand out. If you’re an investor, this could be your chance to negotiate better deals as competition among buyers cools slightly.

So, What’s Next?

Spring is historically one of the busiest real estate seasons, and with more sellers expected to list, now is the time to prepare. If you’re thinking about selling, the right pricing strategy and marketing plan will be key to getting top dollar. Investors should keep an eye on off-market deals and motivated sellers who may need to adjust pricing.

👉 Want to know how your specific city or neighborhood is performing? Thinking about making a move? Let’s chat! Reach out to me for tailored insights and guidance to help you make the best decision in this evolving market.