U.S. Housing Market Shifts Toward Buyers: What Los Angeles Buyers and Sellers Should Know Now

The national housing market is moving further toward buyers this fall, but Los Angeles is not following the national script exactly. New September data shows a widening gap between sellers and buyers across the U.S., softer contract activity and more inventory. At the same time, mortgage rates have moved back toward 7%, keeping affordability under pressure.

For Los Angeles, the key is the contrast: buyers have more leverage than they did during the frenzy years, yet local inventory remains much tighter than the national market. That makes pricing, property quality and neighborhood-level demand especially important.

The U.S. Is Now a Much More Buyer-Friendly Market

Redfin reported on September 10 that U.S. home sellers outnumbered buyers by 58% in August—the largest gap in its records dating to 2013. There were an estimated 1.53 million sellers versus about 972,300 buyers. That does not mean every city is a buyer’s market, but nationally it is a major shift in negotiating power.

The supply side is also improving. Redfin reported that August new listings rose 2.6% month over month to their highest level in more than four years, while the total number of homes for sale reached its highest level since 2020. Three in five homes sold below their original asking price.

Source note: Redfin, September 9-10, 2026, national housing-market and buyer-vs.-seller reports.

Pending Sales Are Sending a Caution Signal

The newest weekly data shows demand remains soft. For the four weeks ending September 13, Redfin reported 299,126 seasonally adjusted pending sales, down 5.4% from a year earlier and 3.5% from the prior week—the lowest level in nearly three years. Active listings were up 1.5% year over year, and months of supply reached 4.1 versus 3.9 a year earlier.

NAR’s September research update points in the same direction. August existing-home sales fell 2.0% month over month and 1.2% year over year. Inventory increased to 1.62 million homes, or 4.9 months of supply, while the national median existing-home price rose 1.6% year over year to $429,100.

This combination—more supply, fewer transactions and still-positive price growth—is not a housing crash. It is a market in which buyers can be more selective and sellers have less room to overprice.

Source note: National Association of REALTORS®, September 10 and September 17, 2026; Redfin, September 17, 2026.

Mortgage Rates Are Back Near 7%

Freddie Mac’s Primary Mortgage Market Survey showed the average 30-year fixed mortgage at 6.95% on September 17, up from 6.76% one week earlier and 6.71% on September 3. The 15-year fixed rate averaged 6.26%.

That matters because negotiating leverage does not automatically equal affordability. A buyer may be able to negotiate a better purchase price, seller credit or repair concession, but the monthly payment still depends heavily on the financing environment. In higher-priced Los Angeles neighborhoods, even modest rate movements can materially change purchasing power.

Source note: Freddie Mac Primary Mortgage Market Survey, September 17, 2026.

Why Los Angeles Is Different From the National Market

Los Angeles buyers should not assume that record national buyer leverage means there is abundant local inventory. Realtor.com’s August Los Angeles data showed roughly 20,134 active listings, down 0.3% year over year, while national active inventory increased 3.6%. New Los Angeles listings fell 2.6% year over year.

At the same time, Los Angeles asking prices have softened. Realtor.com reported an August median list price of approximately $1.1 million, down 4.5% from a year earlier, with a typical 53 days on market. About 17% of listings had a price cut.

That creates a more nuanced opportunity. Los Angeles has softer pricing and more negotiating room, but not the same inventory surge seen in many Sun Belt markets. Well-priced homes in desirable neighborhoods can still attract multiple buyers, while properties that launch too high can sit and become vulnerable to negotiation.

What This Means for Los Angeles Buyers

Buyers have more reason to negotiate, but the strategy should be property-specific. Homes that have been on the market longer, have already taken a price reduction, need updating or have limited competition may offer opportunities for price adjustments, closing-cost credits or other terms.

For a standout home in a supply-constrained neighborhood, waiting for a dramatic national-market correction can be risky. Los Angeles supply is not expanding at the national pace. A better approach is to evaluate the individual property, comparable sales, days on market and seller motivation—and negotiate from that evidence.

What This Means for Los Angeles Sellers

The national data is a warning against aspirational pricing. Buyers have more alternatives and are less willing to chase an overpriced listing. In Los Angeles, where new inventory remains constrained, sellers still have an advantage when a home is positioned correctly—but that advantage can disappear quickly if the property sits.

Launching at a price supported by current neighborhood comparables, presenting the home exceptionally well and creating urgency early are increasingly important. The first few weeks on market matter more when buyers know they have negotiating options.

Los Angeles Takeaway

The U.S. market is clearly becoming more buyer-friendly, but Los Angeles is not simply following the national trend. Local inventory remains tight even as prices soften and homes take longer to sell. For buyers, that means more leverage without unlimited choice. For sellers, it means realistic pricing can still produce strong results, while overpricing carries greater risk.

If you are deciding whether to buy, sell or make a move in Los Angeles, the national headlines are only the starting point. The right decision depends on what is happening in your specific neighborhood and price range.

Thinking about a move? Text Artin Hovsepian at (818) 601-6101 for a property-specific Los Angeles market strategy.

Sources

National Association of REALTORS®, Existing-Home Sales and September 2026 Research Update; Freddie Mac, Primary Mortgage Market Survey, September 17, 2026; Redfin, national housing-market updates dated September 9, 10 and 17, 2026; Realtor.com, Los Angeles August 2026 market report.