Luxury Drives Local Gains: Q1 2025 Market Report for Westchester, PDR & Playa Vista

Despite national reports of cooling housing demand and growing inventory, the Silicon Beach neighborhoods of Playa Vista, Westchester, and Playa Del Rey have bucked broader market trends. In Q1 2025, all three neighborhoods experienced significant increases in median and average home prices, driven largely by a shift in the type of properties being sold—larger, newer, and often renovated homes. This surge in high-value property transactions stands in contrast to the broader U.S. and LA County markets, where increased inventory has begun to tip the scales slightly in favor of buyers.

The uptick may be influenced by displacement from recent events like the Palisades fire, which has brought luxury buyers into these coastal communities. While the nation wrestles with affordability and caution, Silicon Beach continues to attract motivated, well-qualified buyers looking for premium, move-in-ready properties.

Understanding the Data: Why We Use Trailing Twelve Months (TTM)

At Team Tami, we strive to provide accurate, insightful data to help homeowners and buyers make confident real estate decisions. Because we focus on hyper-local neighborhoods like Playa Vista, Westchester, and Playa Del Rey, the small number of transactions in a given month or quarter can sometimes skew the data. For example, a sudden influx of larger or newly renovated homes may make it appear that prices are rising rapidly, or conversely, that they’ve dropped sharply.

To provide a clearer picture, we also track Trailing Twelve Months (TTM) data. This approach smooths out short-term volatility and offers a more stable view of pricing trends. While quarterly changes can signal important shifts in the market, TTM data helps reveal the underlying trajectory.

About Interpreting Market Data

One more important factor to consider when looking at real estate trends is the mix of homes sold. In any given quarter, if a larger share of the homes sold are new, renovated, or significantly larger than average, it can push up the median and average prices—even if overall market values haven’t truly increased. Likewise, if more entry-level or fixer-upper homes are sold in a particular period, it can make it appear as though prices have fallen. This is why we pair quarterly figures with trailing 12-month data to provide a more accurate, long-term perspective.

Current Market Conditions: Q1 2025 vs. Q4 2024 vs. Q1 2024

Playa Vista

Q1 2025 saw a significant shift in market dynamics in Playa Vista. Closed sales dropped sharply from 39 in Q4 2024 to 22 in Q1 2025—a 43.6% decrease. However, this decline in volume was more than offset by price growth. Median price surged 19.4% quarter-over-quarter to $1,635,500, while average price rose 19.7% to $1,878,359. Compared to Q1 2024, the price growth is even more striking: median price jumped 24.9%, and average price climbed 18.3%.

This rise was driven by a strong mix of high-end inventory: 7 sales in Phase II, plus two luxury single-family homes in Phase I (an ICON and a Park Home), skewed the overall numbers higher.

Westchester

Westchester experienced a more subtle decline in activity. Closed sales were down 10.7% from Q4 2024, but up slightly year-over-year. Despite fewer sales, the market soared in pricing. The median price jumped 25.6% from the prior quarter and 38.6% year-over-year to hit $2,012,500. The average price increased 19.7% quarterly and 32.1% annually, reaching $2,200,070.

This price appreciation aligns with a noticeable increase in newer or fully renovated homes sold—20 in Q1 2025, compared to 11 in Q4 2024 and just 7 in Q1 2024. These homes were notably larger, with average square footage rising to 2,366. 

Playa Del Rey

In Playa Del Rey, the number of closed sales dipped slightly to 36 from 39 in Q4 2024, but new listings exploded, doubling from 39 to 81—a 108% increase. Median prices climbed 23.1% quarterly and 18.3% year-over-year to $984,500, and average prices jumped 21.0% quarterly and 27.7% year-over-year to $1,505,417.

The surge in listings is a standout anomaly and may reflect sellers responding to buyer demand, possibly influenced by displacement from neighboring areas like the Palisades.

TTM Perspective: A More Balanced View

While Q1 figures show impressive price gains, the TTM data provides important context:

Playa Vista

Closed sales jumped from 88 to 140 year-over-year (a 59% increase), and Days on Market (DOM) climbed from 16.5 to 47. This suggests more sellers are entering the market—likely as the mortgage lock-in effect eases—and buyers are still stepping up despite high rates. Median price rose 3.6% and average price climbed 2.6%, while price per square foot remained flat at $894. This reflects steady demand and pricing despite the jump in inventory.

Westchester

New listings rose 26.3%, and DOM more than doubled from 14 to 35 days. Yet the median price still grew by 6.6% and the average price by 11.1%. This suggests that while homes are taking longer to sell, buyers continue to pay premiums for larger or updated properties.

TTM data shows a 6.2% increase in closed sales and a 46.8% jump in new listings. Median price remained relatively flat (-0.5%), while average price increased 8.3%. The jump in average square footage from 1,491 to 1,695 square feet suggests that larger homes dominated the sales mix, explaining the disparity between median and average price trends. DOM rose significantly from 19 to 50 days. 

Mortgage Rates

As of Q1 2025, average mortgage rates remain near 7% for a 30-year fixed and around 6.4% for a 15-year fixed, echoing national and regional challenges around affordability. These elevated rates continue to suppress buyer demand nationwide, but in Silicon Beach, high-equity homeowners and affluent buyers are showing resilience. Notably, LA County has seen a rise in inventory, suggesting more homeowners are willing to trade up or sell despite higher borrowing costs.

Inventory Levels

• Playa Vista: Inventory climbed with a 75.9% rise in new listings over Q4 2024 and a 45.7% increase from Q1 2024.
• Westchester: New listings rose 40% from Q4 and 28.7% year-over-year.
• Playa Del Rey: A major influx—81 new listings, more than double Q1 2024 and Q4 2024.

Despite this increase, inventory in these neighborhoods remains below levels seen elsewhere in LA County and nationally. The national market is showing signs of becoming a buyer’s market due to excess supply, but Silicon Beach still leans seller-friendly, especially for move-in-ready homes.

Median Sold Price & Days on Market

• Playa Vista: Median DOM dropped to 43 from 60 last quarter, indicating increased velocity.
• Westchester: DOM rose to 39.5, up from 34 last quarter—though still healthy by historical standards.
• Playa Del Rey: DOM dropped significantly from 67 in Q4 to 53, showing brisk movement for desirable listings.

Other Relevant Trends

• Price/Sq.Ft. increased in quarterly data but remained mostly flat in TTM views, showing that recent gains are driven more by mix than market-wide appreciation.
• Avg Sq.Ft. rose sharply in all neighborhoods TTM, with Playa Del Rey seeing the largest increase, reinforcing that larger homes were driving higher averages.

Broader Market Context

National Trends

Nationally, sellers now outnumber buyers by the largest margin in 12 years. Although prices are still rising—up 1.8% YOY in April—buyer demand is lagging. Many are holding off due to high rates and economic uncertainty.

California & LA County Trends

In LA County, inventory has increased by 44% year-over-year, with more homes hitting the market than any time since 2019. However, prices remain stable due to low supply compared to historical norms, and luxury demand surged by 17% in late May.

In contrast to these broader trends, Silicon Beach continues to attract strong demand for premium properties, with little evidence of a shift toward buyer dominance.

Conclusion

While much of the country and even Los Angeles County is slowly transitioning into a more balanced or buyer-leaning market, the Silicon Beach submarkets of Playa Vista, Westchester, and Playa Del Rey are moving in a different direction. Q1 2025 saw rising prices, strong demand for luxury homes, and rapid movement on high-end inventory.

From a TTM view, these markets look healthier and more stable than quarterly jumps might suggest. Values are growing steadily, and inventory gains have been largely absorbed by buyer demand.

At Team Tami, we don’t just sell homes-we help neighbors move forward. With deep roots in Westchester, Playa Vista and Playa del Rey, our local expertise and friendly guidance ensure a smooth, successful journey whether you’re buying, selling or leasing.

Talk to Team Tami.