Is the era of mega-million home sales coming to an end in LA? It seems so, with several high-end properties seeing price reductions. realestate housingmarket
Some of the biggest adjustments are happening with the biggest homes. A massive Bel-Air estate with an indoor pool, a movie theater, a basketball court, and a 1,200-bottle wine cellar was listed for $100 million in 2018. Last month, it was relisted for a much cheaper—although still expensive—$59 million, a 41 percent drop. A five-acre Beverly Hills home asked $135 million in 2018, but its price has been cut 12 percent, to about $75 million. Around the city, in L.A.
While part of this is due to the larger slowdown occurring in the housing market generally, L.A. also has a few unique reasons for the drop-off in the ultra-luxe sector. In April, a “tax” is set to take effect: A 4 percent tax will apply to sales of property between $5 million and $10 million, while those $10 million and above will face a 5.5 percent tax. Agents say that’s caused sellers to lower prices in the hopes of offloading property before the tax comes into play.
On top of that, a local ordinance meant to protect wildlife would prevent mega-mansion development in areas like the Hollywood Hills and Bel-Air. While it hasn’t yet been approved, fewer developers are looking to scoop up properties, lowering the prices on homes and lots that would have appealed to them. “Developers aren’t really buying anymore,” Williams said. “There’s too much restriction.”
If you are in the market, though, and you’ve been biding your time for a good deal on a massive, amenity-loaded L.A. home, now might be your chance.
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