Los Angeles is turning a corner and transitioning from an intensely competitive market to a slightly more balanced one, according to Redfin.

The percentage of Redfin offers that faced competition dropped to 80% in July, down from 86% in June, the report found.

Additionally, home values are increasing, with median sale prices up 26% over last year.

But despite the steady increase, prices are not yet high enough to compel those who bought at the peak to list their homes for sale, causing inventory to remain too tight.

Meanwhile, new construction should bring welcomed inventory relief over the next six months, with building permits for single-family homes in LA County up by 55% in June.