Venice Real-Estate Prices Slip in Spring 2025—What That Means for Your Long-Term Portfolio

Venice’s median listing price ticked down to $2.4 million in April 2025, a 3% year-over-year dip. At the same time, the median sold price is hovering near $2.3 million and homes are taking about 43–100 days to move, depending on the data source. (Realtor.com) (Redfin.com)

Beneath those headline numbers lies an important story for anyone whose balance-sheet is heavy on local real estate: inventory is loosening, pricing power is softening, and the luxury-coastal market is re-entering something closer to “normal.” Below, you’ll find the key stats, why the shift is happening, and three planning moves to consider right now.

Quick-Glance Market Dashboard

Rental Yield & Vacancy Snapshot

Ultra-low gross yields. With a median listing price of $2.4 million in April 2025 and average one-bedroom rent at $2,820/month, Venice’s gross rental yield is about 1.41%—well below the roughly 6% average for coastal markets (apartments.com).

Tight occupancy but sliding rents. Lease-up times remain fast, even for luxury units that get multiple over-asking bids. Yet year-over-year rent growth has slowed from over 5% at the pandemic peak to under 1%. Vacancy is still below 3%, though sub-markets like Abbot Kinney and the boardwalk area are offering one to two months free on a 12-month lease (rentalsource.com).

Policy & Tax Considerations

Property tax drag. Los Angeles County’s property tax rate of 0.59% means a $2.4 million home incurs roughly $14,160 of taxes annually, over $1,000 each month (tax-rates.org).

“Mansion Tax” thresholds rising. Measure ULA adds a 4% city transfer tax on sales above $5.3 million and 5.5% on those over $10.6 million, on top of the 0.45% base LA transfer tax. That pushes total conveyance costs near 6% for ultra-luxury deals starting July 1, 2025 (members.aagla.org).

Proposition 13 quirks. Primary-residence taxes can only rise by 2% per year, regardless of market run-ups, which benefits long-time homeowners. In contrast, inherited or newly purchased rentals are reset to full market value, potentially triggering a significantly higher tax bill upon reassessment.

Why Prices Are Cooling

1. More Homes to Choose From. National inventory rose ~19% year-over-year in March, the largest March stock since 2020, and California’s Unsold Inventory Index hit 3.5 months in April, up sharply from last year. More supply means sellers can no longer price with impunity. zillow.comnoradarealestate.com

2. The “Golden-Handcuff” Is Loosening. As mortgage rates glide down from 7 % peaks into the mid-6 range, would-be Venice sellers finally feel they can trade up without doubling their payment.

3. Luxury-Coastal Saturation. Remote-work relocations and low rates drove Venice’s pandemic-era demand; that pool has thinned, so price growth is moderating.

Portfolio Implications

Risk	Why It Matters	Planning Response
Over-Concentration	A $3 M primary residence can dwarf retirement accounts, leaving you “house-rich, cash-poor.”	Run a Home-Equity Stress Test to cap any single asset at ~20 % of net worth. Rebalance via taxable portfolio or real-estate fund diversification.
Sequence-of-Return Risk	Retiring while home values drift sideways could delay a planned sale-and-downsize strategy.	Consider a HELOC safety net or 10-year interest-only mortgage that frees liquidity without a forced sale.
Tax Timing	Lower valuations reduce the embedded gain if you plan to sell a rental or second home.	Pair a sale with Roth conversions or opportunistic tax-loss harvesting inside your brokerage account.

Three Actionable Plays Before Year-End

1. Refinance to Flex. If your rate is north of 6%, rate/term refis may pencil out again by Q4 if the Fed gets two cuts in.

2. Harvest & Reinvest. Take equity gains from ancillary properties (or a cash-out refi) and rotate into diversified REITs or muni ladders to smooth income volatility.

3. Gift Strategically. A price plateau is an opportune window for in-kind gifts (think family LLC interests or partial property shares) since lower appraisal values reduce potential gift-tax exposure.

Bottom Line

A 3% dip is not a crash, but it is a reminder that Venice’s real-estate rocket boosters are cooling. Long-term investors should use the lull to rebalance concentrated home equity, optimize their tax calendar, and line up flexible financing before the next rate pivot.

Curious where your own balance sheet stands?  Book a complimentary Home-Equity Stress Test with Westlight Wealth and walk away with a one-page action plan tailored to your goals.

Further Reading & Data Sources

• Venice CA Market Overview – Realtor.com realtor.com

• Venice Neighborhood Trends – Redfin redfin.com

• U.S. Inventory Growth – Zillow Research March 2025 Report zillow.com

• California Unsold Inventory Index – C.A.R. April 2025 Update noradarealestate.com

Disclaimer: This post is provided for informational purposes only and does not constitute financial, legal, tax, or investment advice. You should not rely on any of the information here as a substitute for professional advice tailored to your specific circumstances.

Westlight Wealth and its affiliates make no representations or warranties about the accuracy, completeness, or suitability of the information contained in this post. Any examples or opinions expressed are based on sources believed to be reliable, but they may be subject to change without notice.

Before making any real estate or financial decision, you should consult a qualified advisor who can assess your individual situation. Westlight Wealth expressly disclaims any liability for actions taken in reliance on the content of this post.