Higher interest rates and a new tax on luxury home sales in Los Angeles are weighing on even the celebrity real estate agents who show off their million-dollar listings on TV.
Mauricio Umansky, chief executive officer of the Agency and star of the Netflix series Buying Beverly Hills, said his company’s transaction volume, though better than average, is down about 25%. The housing market, he said, “is in a recession.”
Jason Oppenheim, president of the Oppenheim Group and star of two other Netflix programs, Selling Sunset and Selling the OC, also expects to sell fewer homes this year.The nation’s second-largest city, a perennial hot spot for real estate, is wrestling with higher interest rates that make homes less affordable and a new tax that went into effect in April. The city imposes a 4% levy on properties selling for over $5 million and 5.
In the first half of the year, sales of homes priced over $10 million in the greater Los Angeles area fell 44%, according to the brokerage firm Compass. Total volume declined 40% to $3.2 billion. The LA market still led the US in sales of homes above $10 million, with 160 properties trading in the first half of 2023.
Home sales to the merely rich have also tumbled. In Brentwood, where the median home price in June was $3.1 million, property sales fell 63%, according to broker Douglas Elliman. In Beverly Hills, which as a separate city isn’t subject to the LA mansion tax, the number of properties sold slumped 43%.
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