More Homes, More Seller Competition
The Southern California real estate market is seeing an increase in homes for sale, with more homeowners deciding to list their properties than in the past couple of years. As we transition into spring, inventory levels are rising, and seller competition is intensifying across key markets, from Newport Coast and Irvine to Beverly Hills, Bel Air, and Century City.
More Homes, More Choices – A Shift in the Market
With higher mortgage rates keeping many homeowners on the sidelines, the market has seen fewer listings in recent years. However, as more sellers recognize that interest rates may not drop significantly anytime soon, they are opting to list their homes now rather than wait.
Key Market Insights:
- More Homes on the Market: The inventory has increased by 56% year-over-year, reaching its highest mid-February levels since 2020.
- Increased Seller Competition: With more homes hitting the market, buyers now have more choices, leading to longer selling times for overpriced listings.
- Rising Inventory with Low Demand: While more sellers are entering the market, buyer demand remains relatively stable, causing available homes to accumulate.
How Mortgage Rates Are Shaping the Market
Since 2022, the Federal Reserve’s rate hikes have pushed mortgage rates from 3.25% to over 7%, making it harder for many homeowners to justify selling.
Why More Sellers Are Entering the Market Now:
- Homeowners Are Adjusting to Higher Rates: Many sellers who have held off listing their homes are realizing that interest rates may not drop significantly in the near future.
- Spring Market Surge: More homes typically hit the market from March to August, with May often marking the peak selling season.
- Market Normalization: As time passes, inventory levels are gradually returning to pre-pandemic norms.
What This Means for Sellers in Southern California
With more homes on the market and buyer demand remaining steady, the competition is heating up. Sellers need to be strategic to stand out in high-end markets like Newport Coast, Irvine, Beverly Hills, and Brentwood.
Top Seller Tips for Success in a Competitive Market:
- Price Competitively – Overpricing could leave your home sitting on the market for months.
- Enhance Presentation – Luxury buyers expect staged, high-quality listings with professional marketing.
- Work with a Local Expert – A real estate specialist who understands the high-end Southern California marketis crucial to navigating these shifts.
The Luxury Market Outlook
The luxury segment ($2.5M+) has also experienced an inventory jump, with a 7% increase in available high-end homes. Demand for luxury properties, however, remains steady, creating opportunities for buyers to negotiate better deals.
What Buyers Need to Know
For buyers, the increase in inventory means more choices and negotiating power. Those who act strategically in this market—especially in exclusive areas like Newport Coast, Holmby Hills, and Century City—can secure high-value properties before competition intensifies later in the year.
Bottom Line
- More homes are hitting the market, increasing seller competition.
- Proper pricing and strategic marketing are key for sellers in 2025.
- Luxury real estate buyers have more negotiating power in high-end areas.
If you're thinking of buying or selling in Newport Coast, Irvine, Beverly Hills, or beyond, now is the time to work with a knowledgeable expert who understands the nuances of the Southern California luxury market.
📍 Find your next home or get expert advice on selling in today’s market – Visit go2hosana.com to connect with Hosana Saputra and explore exclusive listings in the most prestigious neighborhoods.
