The Southern California housing market is entering a new chapter in late summer 2025. For years, low inventory and soaring demand tilted the playing field heavily in favor of sellers. Bidding wars, waived inspections, and offers well over asking became the norm. But now, the tide appears to be shifting. With inventory levels climbing across Los Angeles, Orange, and San Diego counties, many buyers are asking: Are we finally getting some leverage back?
The Numbers Behind the Surge
- Los Angeles County: Active listings rose nearly 18% year-over-year in August 2025, marking one of the strongest supply gains since 2019.
- Orange County: Inventory is up 15% year-over-year, particularly in mid-tier suburban neighborhoods like Irvine and Mission Viejo, where new construction is finally catching up.
- San Diego County: Active listings jumped 12% year-over-year, with the biggest increases in single-family homes just outside city centers.
This increase in homes available means buyers have more choices, more negotiation power, and less pressure to make snap decisions.
Pricing Trends: Cooling, Not Crashing
While home prices remain elevated compared to pre-pandemic levels, the pace of appreciation has slowed:
- Median home prices in Los Angeles edged up only 2.5% annually, compared to double-digit spikes just two years ago.
- Orange County luxury homes, particularly in coastal enclaves like Newport Beach and Laguna Niguel, have seen slight price reductions as more high-end listings hit the market.
- San Diego homes are holding steady but fewer buyers are offering above asking price.
This doesn’t mean a crash is on the horizon, but it does suggest that buyers can negotiate more effectively, especially in markets where inventory is rising faster than demand.
Buyer Behavior Is Changing
The psychological shift is just as important as the numbers. For the first time in years:
- Buyers are making contingent offers without being automatically dismissed.
- Some sellers are offering credits toward closing costs or rate buydowns to attract buyers.
- Investors are targeting “days on market” homes, betting that motivated sellers will accept lower offers.
For first-time buyers and investors alike, this is a window of opportunity that simply didn’t exist in the frenzied market of 2021–2022.
Which Counties Favor Buyers the Most?
- Los Angeles: Buyers looking in suburban pockets like the San Fernando Valley or East LA are finding more bargaining room than in prime luxury areas.
- Orange County: Coastal cities remain competitive, but inland homes in Anaheim and Tustin are seeing longer listing times—good news for patient buyers.
- San Diego: Demand is still strong, but with more homes hitting the market, buyers no longer feel compelled to waive every condition.
In short: leverage is shifting, but unevenly. Serious buyers who understand county-level dynamics can now secure deals that were nearly impossible just a couple of years ago.
Final Takeaway
Southern California is not turning into a full-blown buyer’s market, but it’s also no longer the relentless seller’s market of years past. More inventory equals more balance, and that means opportunity.
Why Work With Amin Vali Real Estate Investment Group?
In a shifting market, timing and strategy are everything. At Amin Vali Real Estate Investment Group, we help investors and buyers identify the best opportunities—whether it’s securing a coastal property in Orange County, a high-demand rental in Los Angeles, or a long-term investment in San Diego.
📊 Our team provides custom investment maps, market data, and tailored strategies to give you a competitive edge.
Let’s turn this market shift into your next profitable move.
👉 Contact Amin Vali Real Estate Investment Group today to start your path toward smarter investing.
Amin Vali .
B.S in Civil Engineering,MBA, Realtor
Cell phone: +1 (949)220-1000
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Southern California Real Estate Investment Blog 