Your LA Home Is Sitting Longer: A Pricing Strategy for a Buyer-Leveraged Market

By Diana L. Marquez, Real Estate Agent | CA DRE #01418705 | eXp Realty of Southern California, Inc., DRE #02187306

If your Los Angeles home has been sitting longer than expected, you are not alone. Buyers are taking more time. They are comparing more homes. They are watching their monthly payment closely.

That does not mean Los Angeles home prices are falling. Depending on the geography and the source, the most recent median reads somewhere between roughly $928,000 and $1.05 million, with year-over-year change ranging from about 2% up to about 1.4% down by methodology. I treat that as a directional read rather than a precise figure. Appreciation forecasts still fall in the low single digits.

The market has changed in a different way. Homes are taking about 52 days to sell, and inventory is up 3.3% from this time last year. Buyers have more room to negotiate, and sellers need a pricing strategy built for today’s conditions.

The Market Has Shifted

On September 16, the Federal Reserve raised its target rate by 25 basis points to 3.75%–4.00%, the first increase in three years. The Fed cited continued inflation pressure. You can read the Federal Reserve announcement.

The immediate issue for buyers is simple: mortgage rates are back above 7%.

As of the week ending October 1, market averages are approximately:

• 30-year fixed: approximately 7.28%, up from 7.03% the week before and the highest reading since November 2023
• 15-year fixed: typically running somewhat below the 30-year
• VA 30-year: generally the lowest of the commonly used options
• FHA: generally below the conventional rate
• 30-year jumbo: approximately 7.0%–7.4%, depending on the lender and points

Rates vary by borrower, loan type, credit profile, down payment, and lender. Still, the larger point is clear. Buyers are not waiting for a rate cut before they make every decision. Many are requalifying now based on the payment they can manage today.

That changes how sellers should approach pricing.

Why the Old Pricing Playbook No Longer Fits

In a faster spring market, some sellers could price above recent comparable sales and wait for competing offers. Strong demand often gave the strategy room to work.

Today, an aspirational price can create a different result.

Buyers see the home online. They compare it with newer listings. They run the monthly payment. If the payment feels too high for the condition, location, or size, many will simply move on.

The listing may receive activity without receiving a serious offer. Then the days on market begin to accumulate.

After a few weeks, buyers may start asking:

• Why has this home not sold?
• Is there a condition issue?
• Is the seller difficult to negotiate with?
• Can I offer below asking because the home has been available for so long?

That is the real cost of overpricing. The home sits, buyer interest cools, and the seller loses negotiating position. A later price reduction may bring the listing back into view, but it does not erase the time it spent on the market.

A correctly priced home can often create stronger early interest than an overpriced home that eventually reduces its price.

The Payment Problem Matters

Many buyers are not rejecting the home itself. They are rejecting the payment.

At rates above 7%, even a modest change in the loan amount can affect affordability. Buyers may also face higher insurance, property taxes, maintenance costs, and other monthly expenses.

That is why pricing should not be the only conversation.

For some listings, a seller-paid credit or a temporary 2-1 rate buydown may help more than a price reduction. A 2-1 buydown lowers the buyer’s interest rate for the first two years, subject to lender approval and program rules. A seller credit may also help with closing costs, prepaid expenses, or approved repairs.

The right choice depends on the property and the seller’s goals.

A credit can be worth considering when:

• The home is fundamentally well-positioned.
• Buyer feedback focuses on the monthly payment.
• The listing has been available for more than 45 days.
• The seller wants to protect the net proceeds.
• The buyer pool includes borrowers who may benefit from temporary payment relief.

A price adjustment may be better when:

• The home is clearly above competing inventory.
• Showings are limited.
• Buyers consistently say the home does not offer enough value at the current price.
• The condition, location, or layout creates a meaningful comparison gap.
• The property needs to reach a different search bracket.

The key is to address the actual objection. If buyers cannot justify the price, a credit alone may not solve the problem. If buyers like the home but cannot manage the payment, a financing solution may protect the seller’s position better than cutting the price.

Every option should be reviewed with the lender, because credits and buydowns have limits and eligibility requirements.

A Loan Limit Change Can Widen the Buyer Pool

The 2026 loan limit changes also matter for Los Angeles sellers.

The baseline conforming loan limit increased to $832,750, up from $806,500. In Los Angeles and Orange counties, the high-balance conforming and FHA ceiling increased to $1,249,125, up from $1,209,750. That is a 3.26% increase, effective January 1.

The Federal Housing Finance Agency publishes the annual conforming limits.

This change may help some buyers who previously needed jumbo financing. Depending on the property, down payment, and borrower qualifications, a buyer may now qualify for high-balance conforming financing or FHA financing instead.

That can change the rate and mortgage-insurance math. Some buyers may gain access to a lower rate than a jumbo loan would provide. Others may preserve more cash for their down payment, closing costs, or reserves.

Sellers should understand which financing options fit the property. A home priced just above a loan-limit threshold may reach a different group of buyers if the pricing and financing structure are reviewed together.

This does not mean every buyer will qualify. It means the buyer pool may be wider than it first appears.

Build a Defensible Number

A strong home valuation pricing strategy starts with evidence, not hope.

I recommend reviewing four things together:

1. Closed comparable sales

Closed sales show what buyers actually paid. The best comparisons account for location, size, age, condition, lot, layout, parking, views, and upgrades.

An active listing is not proof of value. It is only the competition.

2. Current competing inventory

Buyers compare your home with what they can purchase today. A home that sold six months ago may not reflect the choices available now.

Look at price, presentation, condition, concessions, and days on market. A competing home with a newer kitchen or better outdoor space may need a meaningful adjustment in your pricing analysis.

3. Condition and location

A remodeled home and a home that needs work do not compete equally, even if they have similar square footage.

The same applies to location. Street noise, access, school boundaries, parking, views, lot shape, and proximity to transportation can affect buyer decisions.

A slower market rewards honesty about condition. Preparation still matters, but presentation cannot fully erase a value gap.

4. Timing and launch strategy

The first days on the market matter. That is when the listing reaches the largest group of buyers, agents, and saved-search alerts.

Before launch, complete the repairs that buyers will notice. Prepare strong photography. Organize disclosures. Make the home easy to show. Then choose a price that gives buyers a clear reason to act.

A price reduction later may bring attention back, but it cannot recreate the advantage of a well-prepared day-one launch.

A Slower Market Does Not Mean a Frozen Market

Real estate transactions are still closing. Lending remains active.

Recent commercial activity provides useful context. Decron Properties completed a reported $114 million purchase of the 5550 Wilshire apartment complex in Miracle Mile on September 18, even with debt costs above 7%. DivcoWest’s $70 million Glendale office sale and the reported $34 million Bank of Italy building transaction in Downtown Los Angeles also show continued real estate activity.

Commercial transactions do not directly predict what will happen with an individual home. They do show that capital has not left Los Angeles. Buyers and investors are still making decisions. They are simply evaluating value, financing, and risk more carefully.

Residential sellers can take the same approach.

The Right Strategy Is Specific to Your Home

Realistic day-one pricing can still produce strong outcomes in this market. Sellers who prepare carefully, understand the competition, and respond to buyer feedback have more control than they may feel they do.

If your home has been sitting, the answer may be a price adjustment. It may be a credit, a temporary buydown, or a targeted repair. Sometimes the strongest plan combines two or more of these choices.

The important thing is to understand why the home has not sold before deciding what to change.

If you are thinking, “How can I sell my house fast?” the first step is not always a larger price cut. Start with a clear review of the closed sales, current inventory, financing options, condition, and your desired timeline.

I can help you work through those choices in plain language and build a plan that protects your interests without rushing the decision. You can connect with Diana Marquez to discuss your home’s value and next steps.

Diana L. Marquez | CA DRE #01418705 | eXp Realty of Southern California, Inc. — DRE #02187306