Los Angeles is one of the most active and competitive markets among the top U.S. metro areas. On Apr. 1, the city of Los Angeles' mansion tax came into effect. The mansion tax, officially known as the Measure ULA, levied an extra 4% in taxes for properties sold above $5M and 5.5% on those sold over $10M. It was introduced to help solutions for the city's homeless crisis. Current market scenario: According to Zillow, in May 2023, Los Angeles home prices were down 4.2% YoY. Since the beginning of this year, the YoY rate has been below zero, highlighting the impact of higher interest rates. The supply of new listings is also very low. In May, the number of new listings slumped 30.9% YoY. Luxury property listings have also been declining owing to the mansion tax. What's up for sale: Situated on 5.5 acres of prime land, this Bel Air Promontory estate, priced at $28.5M, is surrounded by properties valued a $100M and beyond. The property features a museum-quality garage, a gourmet kitchen, a wine cellar for 320 bottles, a gym/sauna, and a 15-foot screening wall.
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