LA is on Fire. OC is Watching. Here's What You Need to Know.

by Derek Reilly

 
LA's housing market is on the move, OC is feeling the ripple effect, and the smartest buyers and sellers are making moves now. Let's dive into what has happened in the first 50 days of 2025...
 

LA is on Fire. OC is Watching. Here's What You Need to Know.

If you've been waiting for a cool down, let me save you some time—it's not happening. The real estate market in Southern California is as relentless as ever, and 2025 is proving that supply and demand still rule everything around me... LA inventory is tighter than it's been in years, rents are skyrocketing, and buyers are still making aggressive offers. 

Meanwhile, Orange County is feeling the effects of LA's chaos, with more demand trickling south and keeping prices strong... Sellers still hold the upper hand (I've already helped sellers get over asking), while smart buyers are finding ways to negotiate better terms (I've also made that happen this year).

The truth is, whether you're buying, selling, or even investing, the best time to act is when others hesitate. As Warren Buffet says "Be fearful when others are greedy, and greedy when others are fearful."

With that said, if you don't have a strategy yet, it's time to get one—before the market decides for you. Book some time with me to discuss options -> Complementary Strategy Session

The Market is Moving—Are You?

Let's be clear: Southern California real estate doesn't sit still. What happens in LA doesn't stay in LA—it bleeds into OC. Inventory is at record lows, rents are spiking, and yes, sellers are still getting over asking (I've done it multiple times this year). Meanwhile, buyers who know how to play the game are negotiating below asking or securing better terms (I've done that too).

If you're waiting for the perfect time, bad news—it doesn't exist. The market favors those who understand how to leverage opportunities, and that's exactly what I'm here to help you do.

Los Angeles: The Market That Won't Back Down

Wildfires, inflation, mortgage rates—LA real estate doesn't care. It keeps moving, and here's why.

What's Happening?

  • Over 16,000 homes lost in high-end areas = even less inventory in an already tight market.
  • Rebuilding will take years, meaning demand isn't dropping anytime soon.
  • Luxury market in limbo: Some sellers are cashing out, others are betting on future appreciation.

What This Means for You

  • Sellers: Low inventory means you hold the power. I'm getting sellers over asking—this is your moment.
  • Buyers: Not everything sells over asking. I've helped buyers negotiate below asking this year—strategy matters.
  • Investors: The rental market is surging. If you own, hold. If you don't, now's the time to find the right deal.

Orange County: Watching & Reacting

What happens in LA does not stay in LA. OC's market is directly influenced by LA's shifts.

How LA is Affecting OC

  • LA buyers are heading south for more stability—pushing up demand.
  • Rents are climbing as LA's affordability crisis spills over.
  • Luxury inventory is tightening across both counties as high-end sellers wait for their moment.

What This Means for You

  • Sellers: You still have the upper hand, but spring competition is coming. List before inventory increases.
  • Buyers: The best deals? Off-market and pre-market listings. I have access. Let's talk.
  • Investors: OC remains one of the safest bets for long-term appreciation and rental stability.

Where's The Market Going?

  • Mortgage rates: Holding at 6-7%—no dramatic drops in sight.
  • Inventory: Still historically low, keeping prices strong.
  • Biggest mistake? Waiting too long...

The Bottom Line: Should You Buy or Sell Right Now?

Short answer? Yes. But you need a strategy.

  • Sellers: I'm getting top dollar for my sellers because we price and position right.
  • Buyers: The best deals aren't where the public is looking. I've helped buyers secure under-asking deals this year.
  • Investors: High rental demand means long-term wealth-building opportunities are here.

Let's Make a Smart Move. 

If you've been thinking about making a move, let's talk strategy before the market shifts again. I'm already getting sellers over asking and helping buyers secure better deals before competition heats up even more.

  • Thinking about selling? Let's get you top dollar before inventory increases.
  • Questions about buying? I have expert in-sites and complimentary strategy session
  • Want to invest wisely? Let's make a long-term strategy that works.
  • Looking for off-market deals? I have access to exclusive listings.

Book some time with me to discuss options -> Complementary Strategy Session

Call or Text: 310.902.2909

Email: derek.reilly@redfin.com

 
facebook
 
linkedin
 
instagram
 
 

Derek Reilly

Senior Agent @ REDFIN

CALIFORNIA | DRE # 02072548
 
 
 

 

     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
facebook
 
linkedin
 
instagram
 
 

Derek Reilly

Senior Agent @ REDFIN

CALIFORNIA | DRE # 02072548
 
 
 
mobilePhone
310-902-2909
website
www.westsidederek.com
Derek Reilly

"My job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "

+1(310) 902-2909

derek.reilly@redfin.com

4215 Highland Ave, Manhattan Beach, California, 90266, USA

GET MORE INFORMATION

Name
Phone*
Message