REAL ESTATE • On the Market
The mansion tax went into effect for the City of Los Angeles on April 1, levying a 4% charge on all residential sales in the city between $5 million and $10 million, and 5.5% on sales above $10 million. The impact so far? Just above $5 million or $10 million, nothing is trading.
That’s because the tax wipes out any gains from $5,000,000 to $5,208,333 and $10,000,000 to $10,582,010.
“Why would you sell in that range?” luxury real estate agent Paul Salazar of Hilton & Hyland asked real estate news website Inman. “It makes no sense.”
Indeed, sensibility has won out. According to data furnished by Salazar, between April 1 and late November, only one home sold between $5M to $5.2M. During the same period in 2022, 22 properties traded in that zone. On Zillow, FOUND noted only two currently active single-family property listings for $5M-$5.2M within city boundaries.
Of course, that means that the market for properties priced just below $5 million is an active one. Three current listings, in Venice and Playa Vista, hovering just under that liminal line:
→ 13213 Rose Ave. (Venice, above) • 5BR/5.5BA, 4800 SF • Modern design plus a recent $245K price chop • Ask: $4.75M • Days on market: 28 • Broker: Brian Maser, The Condo Experts.
→ 611 Broadway (Venice) • 7BR/7BA, 6134 SF • Ask: $4.995M • Two airy, modern units near Abbot Kinney • Days on market: 12 • Broker: Alex Baker and Kerry Ann Sullivan, Pardee Properties.
→ 5212 Village Dr. (Playa Vista) • 4BR/6BA, 4279 SF • Ask: $4.995M • Three-story modernist home • Days on market: 46 • Broker: Paige Ogden, Pardee Properties.