The Beat Goes on Even as Market Conditions Disrupt the Party
When Kurt Rappaport closed the sale of a Malibu estate to Jay-Z and Beyoncé for $200 million in May, the Los Angeles real estate business cheered a new record for the priciest home in California history.
Much of the rest of the past 12 months has been quiet by comparison. Rising interest rates, a statewide property insurance crisis and the local issue of the recently imposed ULA wealth transfer tax haven’t stopped the music in the luxury market, but they have slowed the tempo significantly.
Even L.A.’s top agents couldn’t sidestep that trio of market pressures. Sales volume for the top 20 Los Angeles agents totaled $7.3 billion in the 12-month run from July 2022 to July 2023, according to a data analysis by The Real Deal. That’s down by more than 25 percent from the previous year. TRD’s analysis is based on deals registered with the Multiple Listing Service in L.A. County, and excludes off-market deals.
The downward trend saw dips in both deals and prices. Some managed better than others and kept the party going.