The new "mansion tax" that starts Saturday is now projected to bring in 25% less than original estimates advertised to voters in November.

This past November, Los Angeles voters backed Measure ULA, a transfer tax on big-ticket property sales that the city says will generate a new revenue stream for affordable housing projects and homelessness prevention. Known as the “mansion tax,” Measure ULA will impose a 4 percent tax on property sales above $5 million and a 5.5 percent tax on properties above the $10 million mark. The tax must be paid by the seller.

The City of Los Angeles now expects to make a lot less from its new transfer taxes than originally advertised.

Measure ULA is projected to generate up to $672 million in revenues from July 1 of this year through June 30 of next year, according to an analysis from the City Administrative Office, which conducts financial and budget analyses. The office released its report 2 weeks ago.

The new numbers are about 25 percent less than original estimates provided to voters in November, assuming about $5.1 billion less in property sales.

Buyer’s remorse is rampant among pandemic purchasers

A large crop of unhappy homeowners is emerging after having time to settle with their hasty pandemic purchase in the last couple of years.

Buyers at the time were bidding up home prices to beat out fierce competition, and many waived the home inspection or appraisal to get the house they wanted.

But now they may regret the extremes they went to for a home: More than three-fourths of U.S. homeowners who purchased in the prior year expressed regret about their decision, according to an October survey from Hippo, a home insurance group.

The top reasons for their regret are:

-I spent too much: 30%

-I bought too quickly: 26%

-My home requires too much maintenance: 25%

-I bought a fixer-upper: 24%

-I was pressured to make an offer: 21%

-I bought sight-unseen: 17%

-I don't like my home's location: 15%

-I don't like my neighbors: 15%

-I don't like my home: 13%

This survey was conducted by Kickstand Communications on behalf of Hippo Insurance Services. Fielded between October 22-28, 2022, the results are based on 1,002 respondents.

More sellers are lowering asking prices

With mortgage rates now nearing 5%, many aspiring home buyers may have reached the top of what they can afford, especially as 40-year-high inflation affects the threshold for them.

As a result, the number of sellers dropping their asking price is growing at a faster clip than in the recent past. About 12% of homes for sale had a price drop during the four weeks ending April 3. That marks a jump from 9% a year ago.

Home prices are well above levels from a year ago. The average borrower is paying about 40% more than they would have for the same home a year ago on a monthly payment due to higher mortgage rates and higher home prices, according to the National Association of REALTORS®.

More consumers believe that mortgage rates and home prices will rise further, according to a monthly consumer sentiment index from Fannie Mae. “If consumer pessimism toward homebuying conditions continues, and the recent mortgage rate increases are sustained, then we expect to see an even greater cooling of the housing market than previously forecast,” Mark Palim, vice president and deputy chief economist at Fannie Mae, wrote about the consumer sentiment index’s findings.

However, some buyers may see an opening in the market. They may want to rush ahead of further mortgage rate increases or may see an uptick in new listings.

Source: “Rising Mortgage Rates Are Causing More Home Sellers to Lower Their Asking Prices,” CNBC (April 7, 2022)

You won't believe how much this Burbank home sold for this week!

And it's on Buena Vista, a very busy street...

Here is the cheapest home sold this week in Burbank.

Asking price: $782,000

Selling price: $850,000

This remodeled/ upgraded home has 2 bed/1 bath, 864 sq. ft. of living space, and is on a 3,000 sq. ft. lot.

Would you have bought this home at this price?

Burbank had 49 property sales for the month of February

There were 42 property sales in Burbank for February 2021.

This home sold over the asking price this week in North Hills. Did they pay too much?

Here is the most expensive home sold in North Hills this week.

Asking price: $899,000

Sale price: $941,000

This home has a total of 5 bedrooms/ 3.5 bathrooms, 2,661 sq. ft. of living space, and a 7,805 sq. ft. lot.

The home features a newly remodeled farmhouse kitchen and a 2 bed / 1 bath guest unit above the garage.

Cheapest home to sell this week in West Hills... don't get too excited! There's a catch.

The cheapest home to sell this week in West Hills comes with a catch.

Episode 29 of The #AskDanielLosAngeles Show

On this episode, I answer the following four real estate questions:
1) Now that my offer is officially accepted, how long does it take to close escrow on the home?

2) How do I send my deposit money over to the escrow company?

3) Is there certain day I should close escrow on?

4) What is a special recording and how is it different than a regular recording?

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