Everyone’s Waiting to Buy on the Westside. That’s Exactly the Problem.
I hear it all the time, from clients, colleagues, and even friends at dinner parties on the Westside: “We’re just waiting for mortgage rates to drop.” On the surface, it sounds like a smart move. A patient, logical approach to one of the biggest financial decisions of your life. But as someone who lives and breathes Los Angeles real estate, I have to be honest: this common mindset could be holding you back if you want to buy on the Westside. Waiting for rates to fall might actually push your dream home further out of reach.
Why Waiting Could Backfire
The Federal Reserve may lower interest rates in the near future, but the LA real estate market, especially from Santa Monica to Beverly Hills, isn’t that simple. Earlier this year, for example, Treasury yields fell, which should have lowered mortgage rates, but mortgage costs actually went up for some buyers due to market volatility.
Here’s the bigger picture: if rates dip below 6%, the National Association of Realtors (NAR) estimates that millions of new buyers nationwide could suddenly afford a home. That pent-up demand hitting a limited inventory creates a perfect storm:
- More competition
- More bidding wars
- Higher home prices
So the critical question is: would you rather buy on the Westside now with less competition and more negotiating power, or wait and compete with everyone else while prices rise?
The Current Westside Market: A Coiled Spring
Right now, the Westside market isn’t weak, it’s waiting. A coiled spring, ready to move.
Key market stats (Los Angeles metro, 2025 estimates):
- Median Westside home price: ~$1.7M (Redfin)
- Average sale vs. list price: 100–101%
- Median days on market: ~46
- Inventory: ~3.9 months supply (slightly favoring buyers)
Even with current rates, well-priced homes are selling. Buyers have time to make informed offers, something that will vanish the moment rates drop and demand surges.
Statewide, the California Association of Realtors (C.A.R.) predicts a 4–5% increase in median home prices in 2025, due to the ongoing housing shortage. Simply put, waiting for the “perfect rate” might mean entering a hyper-competitive seller’s market later, making it much harder to buy on the Westside.
The Hidden Cost of a “Lower” Rate
Let’s run a simple scenario:
Scenario A – Buy Today:
- Home price: $1.8M
- Mortgage rate: 6.75%
- Calm market, negotiating room, fewer bidding wars
Scenario B – Wait for Lower Rate:
- Mortgage drops to 5.9%
- Competing buyers drive price up by 5% → $1.89M
- Stressful bidding war
- Savings from the lower rate are mostly offset by the higher purchase price
This isn’t hypothetical; it’s a pattern I see repeatedly. Buyers try to time the market perfectly when they buy on the Westside, only to find thousands of others have the same idea.
A Practical Approach: How to Win
For Buyers:
- Marry the House, Date the Rate: Focus on finding the right home in the right neighborhood at a price you can afford now. Rates are temporary; your home and its appreciation are long-term.
- Get Fully Pre-Approved: A strong, ready-to-go buyer is much more attractive to sellers.
- Think Creatively: The best deals often aren’t online. Off-market and “coming soon” listings can give you an advantage. Working with a well-connected local agent is crucial.
For Sellers:
- Recognize the Opportunity: Today’s buyers are serious, motivated, and financially prepared.
- Price Strategically: Proper pricing from day one creates urgency and competition.
- Prepare for Launch: Professional photos, staging, and smart marketing make a huge difference in attracting the right buyers.
The Choice Is Yours: Act or React
You can’t control the Fed, the economy, or global events. But you can control your real estate strategy. You can wait and react with the masses, or act now based on clear data and opportunity.
The Westside of Los Angeles will always be one of the most desirable places to live. But what will change, likely very soon, is the level of competition. Don’t let the illusion of a “perfect” rate prevent you from seizing a real opportunity today.
If you want to analyze your options, explore off-market listings, or build a personalized strategy to buy on the Westside, I’m here to help. Whether buying, selling, or investing on the Westside, let’s work together to turn your real estate goals into reality.
Contact Payman Shilian at The Shilian Group for a confidential consultation today.
📞 310-299-7655 | 📧 pshilian@compass.com
Disclaimer
All numbers, rates, and market statistics are estimates and subject to change. This blog is for informational purposes only and should not be considered financial, legal, or investment advice. Always do your own research and consult with qualified professionals before making real estate decisions.
