REAL ESTATE • Sold
Monday marked the one-year anniversary of the so-called mansion tax, which levies a 4% charge on all Los Angeles real estate transactions above $5M, and a 5.5% charge on deals over $10M. Critics cautioned that the tax would slow luxury home sales. One year later, what does the data say?
LA tallied 366 sales of single-family homes above $5M from April 2022-March 2023, but only 166 in the past year, a drop of 54.6%, according to the LA Times. Of course, the past year was a slow real estate market everywhere, but the comps from nearby towns are illuminating: single-family sales only dropped 24% in Beverly Hills, 28% in Malibu, and 29% in Santa Monica, again per the LA Times.
One oddity of the mansion tax, which we’ve noted before, is the impact it’s had on specific pricing right at the $5M and $10M levels; $4.99M and $9.99M have never done so much work. Here, three recent Bel Air transactions at, and in one case, above, that $5M line:
→ 960 Chantilly Rd (Bel Air) • 4BR/5BA, 4600 SF • restored midcentury home with pool, gym, and sauna • Listed: 2/12/24 for $5.395M, sold: 3/29/24 for $5.59M • Listing agents: Jill Epstein and Adam Sires, Nourmand & Associates.
→ 1641 Stradella Rd (Bel Air, above) • 4BR/6BA, 5450 SF • house built 1964 with pool and canyon views • Listed: 9/6/23 for $4.99M, sold: 1/30/24 for $4.75M • Listing agent: Sherel Levi, Beverly and Company.
→ 2727 Casiano Rd (Bel Air) • 4BR/5BA, 3054 SF • recently remodeled one-story modern traditional • Listed: 11/10/23 for $4.495M, sold: 3/13/24 • Sold price: $4.375M • Listing agent: Pavel Blyumkin, Rodeo Realty.