Drop in High-End Home Sales Impacting LA’s Luxury Real Estate Market

44 percent drop in high-end home sales in Los Angeles, Redfin report shows

By Dolores Quintana

According to a recent report, the Los Angeles area has seen a 44 percent decrease in luxury home sales in recent months, data from Wall Street Journal shows. As predicted, higher interest rates, inflation and consumer caution have all contributed to the bottom following out of the market after two years of an outrageous sellers’ market. 

Redfin.com has reported that sales of the most extravagant estates from June through the end of August have declined 28.1 percent overall throughout the nation compared to the previous year. No year in the new millennium has had a larger drop since 2012 and is even worse than the original 23.2% decrease in the first year of the pandemic. 

In California, the drops were even steeper, in Los Angeles, the sales dropped 44 percent, while in San Diego dropped over 65 percent. However, New York City’s sales only dropped 12 percent. 

Herman Chan of Golden Gate Sotheby’s International Realty said, as quoted by The Wall Street Journal, “Six months ago, people were buying homes over-ask and with no appraisal. They didn’t even bat an eyelash. Now, it’s like crickets.”

No one is sure how a proposed ballot measure in November will further affect luxury real estate sales. The so-called “megamansion tax” raises the transfer tax rate on estates that sell for over $5 to $10 million to four percent and for any properties that sell for over $10 million’s transfer tax rate would increase to 5.5 percent. Unite To House LA is the group that put the measure on the ballot with the intention to use the tax money raised by the transfer tax to help house the unhoused by financing new affordable housing and using it to prevent evictions and help buyers of first homes according to Bloomberg.com. Currently, the transfer tax rate is only 0.45 percent.

Related Posts

Suspect Killed by Los Angeles County Sheriffs in Shooting in West Hollywood

July 22, 2024

July 22, 2024

Incident on N. Gardner St. Under Investigation by Sheriff’s Homicide Detectives Los Angeles County Sheriff’s Homicide detectives are investigating a...

(Video) School of Rock Offering Summer Camps for Future Rockstars

July 22, 2024

July 22, 2024

Various Camps Are Offered for Beginners and Experienced Musicians Alike @palisadesnews Camps are offered for musicians of various skill levels...

Brush Fire Extinguished on Palisades Drive

July 21, 2024

July 21, 2024

There Were No Reported Injuries Firefighters swiftly contained a small brush fire in Pacific Palisades on Thursday afternoon, authorities said....

Michelle Bisnoff Arrested for $2 Million Investor Fraud Scheme

July 19, 2024

July 19, 2024

CEO of ESOS Rings Faces Securities and Wire Fraud Charges A Boca Raton woman was arrested today on charges of...

Even After Improvements, Santa Monica Beach Still Ranks as L.A.’s Most Polluted

July 18, 2024

July 18, 2024

A New Report Cites “Continuous Urban Activities” in the Area That Exacerbate Pollution By Zach Armstrong Water quality concerns continue to...

Pierson Playhouse to Present ‘Ride the Cyclone (High School Edition)’

July 18, 2024

July 18, 2024

The Tpteen Production Features a Cast of 13 Youth Actors Theatre Palisades Teen (TPTeen) is set to stage the cult...

Police Drone Catches Car Burglar in the Act, Suspect Apprehended

July 18, 2024

July 18, 2024

The Drone as a First Responder Program Incorporates a Sworn Officer Pilot Who Flies the Drone From a Launch Site...

New Summer Menu Introduced at SALT Restaurant & Bar

July 18, 2024

July 18, 2024

To Complement These Dishes, Salt Offers Two New Cocktails SALT, the waterfront restaurant at Marina del Rey Hotel, has introduced...

Charlie XCX-Themed Event Coming to Venice West

July 18, 2024

July 18, 2024

Many Have Referred to the Season as “Brat Girl Summer” By Zach Armstrong Venice Beach is going to be ‘bumpin’ that....

LAFD Rescues Two Hikers in Pacific Palisades Over Weekend

July 17, 2024

July 17, 2024

The Incidents Occurred About 7 Miles Apart By Zach Armstrong In two separate incidents over the weekend, one day apart...

Renowned L.A. Nursery Opens Fourth Location in Santa Monica

July 17, 2024

July 17, 2024

It Is a Transformation of an Abandoned Car Wash Into a Vibrant Garden Space L.A.-based nursery Rolling Greens has opened...

Judge Issues Final Ruling in Favor of Barrington Plaza Tenants Association

July 17, 2024

July 17, 2024

Decision against Landlord Finds Intent Does Not Meet Ellis Act Standards The final ruling in the case of the Barrington...

Power Outage Leaves Over 300 Without Electricity in Pacific Pali

July 16, 2024

July 16, 2024

DWP Crews Assessed the Cause of the Disruption More than 300 people were without electricity in Pacific Palisades following a...

LAPD and Family Seek Public’s Help to Locate Missing 69-Year-Old Woman

July 16, 2024

July 16, 2024

Beryl Angela Thomas Last Seen in Fairfax Area; May Be Disoriented The family of Beryl Angela Thomas and detectives from...

Residents Sue City of Los Angeles For Stalling Affordable Housing Development

July 16, 2024

July 16, 2024

The New Lawsuit Also Comes After Two Separate l.a. Superior Court Rulings Rejected a Coalition’s Multi-Year Effort to Halt the...