November enters with a flurry of market news headlines and industry shifts that may affect residential real estate in both the short term and long term. There are upsides and possible downsides to all, but I’ll briefly touch on the high points.

A Los Angeles judge has dismissed the case against the newly installed “Mansion Tax” which levies a 4% tax to sellers on homes sold above $5M, increasing to 5.5% above $10M. The tax wreaked havoc with LA’s luxury market this year and virtually stalled home sales to their slowest since 2009. Although it will be placed back on the ballot for voters to decide once more, the belief is the Mansion Tax is here to stay. A serious adjustment for luxury sellers.

A Missouri jury handed down a verdict that ruled against the Nat’l Assoc of Realtors regarding the manner in which commissions are confirmed in listing contracts. The media is having a heyday with many confusing claims and explanations. Agents nationwide fear the public will believe that commissions have not been handled responsibly by the industry. More lawsuits have been placed since the verdict, so this will play out over the next few years before a resolution is reached. As a longtime Team Leader and agent, I am confident our clients know the integrity with which we work and the value we bring to their experience.

Now for some good news! The Calif. Association of Realtors released its forecast for 2024 and predicts an increase in single family sales of 22.9%. They expect sales of 327,100 homes next year compared to 266,200 this year.

California state government has begun a serious program to bring Insurance companies back to the state as well as reduced insurance rates to homeowners. The incentives offered to the companies should attract more interest in securing homeowners with the protection against potential loss. This cannot happen fast enough!

In a year that has equally challenged Homeowners, Buyers, and Agents, we are proud to have produced real results in the toughest market since 2009. Below you’ll see our new listings or special announcements. The national news on our dramatic beachfront bluff New Construction in Encinitas has been consistent and raving. Wall St Journal, local news stations, Robb Report and numerous other publications have rallied to spread the news. Pls click on the image and enjoy. Our new construction Bel Air estate has incomparable styling & details. Another residence that resonates for all who tour.

We have officially reached the Holiday Season. I wish you a memorable Thanksgiving and all the beloved year-end holidays!

-Ernie