LA's Luxury Property Market is Booming
The Los Angeles real estate market in 2025 is a story of contrasts. On the surface, the overall single-family home market is holding steady, even showing a slight year-over-year dip in sales. According to CLAW MLS data, in 2024, 150,794 single-family homes sold and closed escrow across Los Angeles, averaging 12,566 closings per month.
Through July 2025, we’ve seen 86,472 single-family homes close escrow, averaging 12,353 per month—a small decline that suggests a broadly balanced but slightly cooler overall market.
But look closer—specifically at the ultra-luxury segment—and a very different picture emerges.
In 2024, 499 single-family homes sold for $10 million or more. Through July 2025, 348 properties have already closed at $10 million or above. That’s tracking about 20% higher than last year—while the broader market inches down.
This divergence raises an important question: Why is the top of the market not only immune to the slowdown, but thriving?
The Ultra-Luxury Market Comes Alive
Recent months have delivered a series of blockbuster sales that not only make headlines, but ripple through the entire high-end market.
- July 31, 2025 – The Manor at 594 S Mapleton Drive sold for $110,000,000, tying the highest dollar-value sale of the year (source).
- Just prior, Paris Hilton purchased Mark Wahlberg’s former Beverly Park estate for $63,100,000 (source). I have a personal connection here—I was part of the original team that sold this property to Mark Wahlberg in 2008 as vacant land.
- May 8, 2025 – Another $110,000,000 sale closed privately.
- June 30, 2025 – A $67,500,000 sale closed on Chalon Road, also off-market.
That’s over $350 million in just four properties—and all in less than three months.
When sales like these hit, they don’t just make headlines—they move markets. They create confidence among buyers in the $3M–$4M+ range, signaling that demand at the very top is real, active, and willing to transact at unprecedented price points.
What’s Driving the Disconnect?
The surge in $10M+ sales against a backdrop of stable-to-softening overall numbers isn’t random. Several factors are driving the high-end outperformance:
- Wealth Concentration at the Top
Ultra-high-net-worth buyers are far less sensitive to interest rates or financing costs. In fact, over 50% of LA’s $10M+ transactions this spring closed in all cash (source, source). - Tangible Asset Preference
In a volatile global economy, prime real estate in a city like Los Angeles is seen as a secure, tangible store of value (source). - Lifestyle and Prestige
LA offers a unique mix of privacy, luxury, climate, and cultural capital that’s hard to replicate anywhere else. - Shifting Location Preferences
Safety concerns and climate resilience have led to increased demand in areas like Beverly Hills, Bel Air, and Malibu, partly influenced by recent wildfire activity reshaping buyer priorities (source).
The Ripple Effect: Why These Sales Matter Beyond $10M+
Mega-deals in the ultra-luxury market have a psychological and practical effect on the broader high-end segment. When a $110M estate trades, buyers shopping in the $3M–$8M range see validation for their own purchase at a much lower price point.
Developers also gain confidence, moving forward with high-value projects. Appraisers take note, influencing valuation models across luxury ZIP codes. And in many cases, sellers become buyers—trading one luxury property for another, creating additional market movement.
Looking Ahead: Momentum or Mirage?
The data suggests this is more than a short-term blip. With the year already tracking 20% higher in $10M+ sales volume than 2024, and with multiple high-profile deals still rumored to be in the pipeline, Los Angeles remains a magnet for luxury investment capital.
Barring a major global disruption, the ultra-high-end may continue to lead the market—pulling the broader luxury tier upward, even if the general LA housing market remains flat.
Key Takeaways for Buyers and Sellers
- If you’re buying in the $3M–$5M+ range, now may be a strategic time—before further record-setting comps push pricing upward.
- If you’re selling in the $10M+ bracket, headline transactions are your friend. Leverage that market momentum in your marketing.
- For investors, LA’s ultra-luxury segment is signaling strength in a way that’s historically correlated with long-term value retention.
Thinking About Making a Move?
If you’re curious how these mega-transactions are influencing the value of your property—or you’re considering stepping into the upper-tier Los Angeles market—let’s connect. I bring decades of LA real estate experience, including being part of the original team that sold the Beverly Park property to Mark Wahlberg. I’ll help you navigate the market with precision and discretion.
📞 Call me today at (310)308-8672 or visit https://kensisson.com/vip to get connected and start the conversation.
A Luxury Listing Agent With 25 Years of Local Experience
I bring 25 years of total experience in the real estate industry, including 15 years in residential home mortgage origination. This combination of expertise allows me to provide homebuyers with a unique perspective on both the real estate and financing sides of the equation. Whether you're securing a home loan or simply seeking expert advice on the homebuying process, my deep understanding of the local Studio City real estate markets and greater Los Angeles markets enables me to guide you through every step. From navigating mortgage applications to understanding the nuances of today’s market, my goal is to ensure you have a seamless, informed, and successful homebuying experience.
*The info-graphic/cover photo for this article was AI-generated
