Brentwood, Los Angeles Real Estate Market Update – February 2025
If you’re looking to buy or sell property in Brentwood (90049), understanding the latest market trends is key. With rising home prices, mortgage rates holding firm, and affordability under pressure, buyers and sellers need to navigate the market strategically. Whether you’re eyeing a luxury estate or a modern condo, here’s what’s happening in Brentwood’s real estate market based on the latest data from Altos research.
Single-Family Homes in Brentwood-90049
The Brentwood housing market remains in a slight seller’s advantage, meaning demand is strong, and home prices are holding firm.
Key Stats for February 2025:
Median List Price: $6,850,000
Median Price for New Listings: $5,643,000
Price Per Square Foot: $1,593
Average Days on Market: 131
Median Days on Market: 21
Inventory: 113 homes available
Median Rent: $30,000 per month
Market Insights Single Family Residence Brentwood-90049:
Homes are selling faster, with the median time on the market at just 21 days. Supply remains tight, keeping it a seller’s market with potential for price increases if demand continues. Luxury homes dominate the market, with properties priced from $3.4 million to over $20 million.
Brentwood Condos and Townhomes-90049 Lates Real Estate Data
The condo and townhome market in Brentwood is showing signs of cooling, but it still slightly favors sellers.
Key Condo Market Stats:
Median List Price: $1,249,000
Median Price for New Listings: $1,217,500
Price Per Square Foot: $846
Average Days on Market: 81
Median Days on Market: 28
Inventory: 53 units available
Median Rent: $3,295 per month
Market Insights Condos Brentwood-90049:
Market activity has slowed, with prices remaining flat. Inventory has increased, giving buyers more options. If demand weakens, prices may face downward pressure.
Affordability is at an All-Time Low
Housing affordability has weakened significantly in Los Angeles, making it difficult for buyers to enter the market.
Mortgage Payment to Income Ratio (Q3 2024): 60.4 percent (compared to a historical average of 34.9 percent)
National Average (Q3 2024): 24.9 percent
Lawrence Yun, chief economist for the National Association of Realtors, put it bluntly: “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge.”
Why Aren’t Mortgage Rates Dropping?
The inflation rate was 2.4 percent in late summer, but it has since climbed to 3 percent in January. That’s one of the biggest reasons why mortgage rates refuse to decline.
Instead of dropping, mortgage rates slightly increased in January, putting more strain on buyers. Higher mortgage rates mean less affordability, and many potential homeowners are getting priced out of the market.
On the flip side, homeowners are building wealth as property values continue to rise. With a new high in home prices, sellers are seeing record appreciation, further widening the gap between homeowners and those struggling to buy.
Inflation must come down before mortgage rates will fall significantly, which would be the key to restoring housing affordability.
Interest Rates and Their Impact on the Market
With interest rates still elevated, monthly mortgage costs remain high, discouraging home purchases and driving renters to stay in the market longer.
For Buyers:
Higher borrowing costs mean less buying power and steeper monthly payments
The market favors cash buyers and high-income earners who can absorb higher costs
Many buyers are waiting for interest rate relief before making a move
For Sellers:
Demand has weakened slightly due to affordability concerns
Strategic pricing is key, as overpriced listings are sitting longer on the market
Luxury homes are still selling well, but mid-range properties face more resistance
Housing Construction and Inventory Trends
New home construction in Los Angeles has increased, helping to stabilize inventory.
Key Construction Trends:
12-month total of single-family building permits: 12,158 (above the 8-year average of 10,361)
Single-family permits increased 9.6 percent year-over-year
More new housing may ease price pressures in the long run. Renters could see more options, but demand is still outpacing supply.
Is Now the Time to Buy or Rent?
For Renters:
With homeownership less affordable than ever, renting remains a practical choice for many. However, rent prices may continue rising as more people stay in the rental market.
For Buyers:
If mortgage rates drop later in 2025, demand could rebound, pushing home prices even higher. For now, buyers should focus on:
Negotiation strategies to secure the best deal
Looking for price reductions in softening market segments
Working with an experienced real estate agent to find off-market deals
For Investors:
With rental demand surging, multi-unit properties and rental homes remain highly attractive investment opportunities. Brentwood’s luxury rental market is thriving, with single-family homes commanding rents of $30,000 per month or more, while lower-end options start at $10,000 or higher. Meanwhile, condos in the area rent for a median of $3,295 per month, solidifying Brentwood as a prime location for high-end renters and real estate investors alike.
Final Takeaway: A Market in Transition
Sellers still hold an advantage, but rising inventory could shift the balance. Buyers face affordability challenges, but price reductions may offer opportunities. Investors should keep an eye on rental demand, as more people opt to rent instead of buy.
Need Expert Advice?
If you’re planning to buy or sell in Brentwood, reach out to discuss your best strategy in this evolving market. Whether you're looking for a luxury estate, an investment property, or your first home, I’ll help you stay ahead of market trends.