Southern California Buyers Are Regaining Leverage in 2025—Here’s What That Means for You

After years of intense bidding wars and rapid price appreciation, Southern California’s housing market is shifting—and for the first time in a while, buyers are gaining the upper hand. If you're thinking of making a move in 2025, this is the moment you've been waiting for.

In this post, we’ll break down what’s changing in the market, why it’s now a more balanced environment, and how you can negotiate better terms when buying your next home.

📊 What’s Changing in the Southern California Housing Market?

Over the past few months, we've seen a noticeable cooling in price growth, along with an increase in inventory. According to recent data, Southern California’s median home price rose by just 0.38% in March 2025—one of the slowest year-over-year gains since late 2023.

Here’s what’s happening:

• More listings are hitting the market, giving buyers more options.

• Homes are staying on the market longer, meaning less competition.

• Mortgage rates, while still high, are expected to stabilize or decline modestly by mid-year.

This combination means one thing: buyers now have more room to negotiate.

💬 Why Buyers Have More Negotiating Power Now

Sellers are starting to adjust to the new reality. We're seeing:

• More price reductions and listing agents open to conversations

• Increased seller concessions—including credits for rate buy-downs and closing costs

• Greater flexibility on terms, like possession timelines or repair requests

For buyers, this is a powerful opportunity to save money and get into a home without overpaying.

🛠️ How to Use This Market to Your Advantage

If you're in the market to buy, here’s how you can make the most of current conditions:

✔️ Negotiate Closing Cost Credits

Ask the seller to cover part (or all) of your closing costs, especially on homes that have been sitting for 30+ days.

✔️ Request a Rate Buy-Down

Work with your lender to lower your interest rate, and use seller funds to pay for it.

✔️ Use the Inspection Report Strategically

If issues are found, ask for repairs or credits—many sellers are more willing to accommodate in today’s climate.

📍 Neighborhoods Where Buyers Have the Upper Hand

Not all areas are cooling at the same pace, but here are a few Southern California markets where buyers are seeing more leverage:

• Inland Empire (e.g., Riverside, San Bernardino): New construction is increasing, and inventory is catching up with demand.

• South Orange County (e.g., Lake Forest, Mission Viejo): High price points and longer DOM are creating opportunities for savvy buyers.

• Parts of LA County (e.g., Highland Park, Glassell Park): Price adjustments and seller incentives are becoming more common.

Want to know where you can find the best deals? 👉 Start your custom home search here.

🎯 Final Thoughts

The Southern California housing market of 2025 is no longer a seller’s-only game. For buyers who’ve been sitting on the sidelines, now may be the perfect time to re-enter the market—armed with better negotiation power and less pressure to overpay.

At The Duarte Group, we specialize in helping our clients navigate every kind of market—and this one is no exception. We’ll help you build a strategy to take full advantage of today’s opportunities.

🏡 Ready to make your move?

Contact us today for a personalized homebuying strategy or to see what’s available before it hits Zillow.