The "mansion tax" was passed both in Santa Monica and Los Angeles yet most agree it is a wealth tax. The National Association of Realtors (NAR) has recently predicted that there will be a decline in home sales over the next few years. A proposed mixed-use development project at 2668 2nd Street has been met with significant opposition from residents who are concerned about the impact on traffic and parking in the area.
Transfer Tax Dirt
The “mansion tax” is a hot topic since the election this month. Some people did not even notice it on the ballot, but both Santa Monica and Los Angeles have voted yes on what most agree is a wealth tax.
Each of the real estate agents on our team have had numerous calls from concerned owners who are upset about the huge increase in transfer tax. Some of these upset owners are left leaning politically, (which can be argued is a little ironic) but almost all agree that this drastic increase will very likely be squandered by the cities. It takes Los Angeles on average, nearly $850,000 to build an “affordable” apartment, so what is the city going to do with all this extra cash? To spend $850,000 per unit indicates either ineptitude or corruption, or maybe a bit of both.
I am an investor in a couple of moderate-income micro units in the city of Gardena. If you want to know what a carefully managed, well-designed, small apartment costs to build in a nearby town, call me.
Spoiler alert – it is nowhere near $900,000.
Shocker: The National Association of Realtors (NAR) has recently predicted that there will be a decline in home sales over the next few years. They predict about 5.2 million homes will be sold by the end of 2022, about a 15% decline from 2021. They expect even fewer homes will likely be sold in 2023 — about 4.8 million homes. This prediction is based on several factors, including rising interest rates, decreasing demand, and an aging population. Duh!
When deciding whether to buy now or wait, individual buyers’ motivations and situations will be key factors to consider; though waiting may not be an option for everyone due to low inventory levels. It is important to note that there is unlikely to be a significant improvement in prices or interest rates in the near future. Some experts predict that home sales will likely decrease in the next few years, so you may want to consider acting quickly if your goal is to buy a home within the next year.
Santa Monica Development Dirt
A proposed mixed-use development project at 2668 2nd Street has been met with significant opposition from residents who are concerned about the impact on traffic and parking in the area. While mixed-use developments do have some drawbacks, their convenience and potential to create vibrant community hubs make them an appealing option for many people.
Redcar Properties, the owner of the site at 2668 2nd Street, wants to demolish the old asphalt parking lot and build a new two-story building with two residential units and a small neighborhood market on the ground floor. They’re also planning on putting in seven subterranean parking spots.
Yes, you read that right. 2 units. Only 2 units, a tiny retail space and some parking.
The proposed development by Kevin Daly Architects would include a two-story, three-bedroom townhome and a two-bedroom flat above the proposed market. The exterior would be wood siding, with a small courtyard on the western side of the building.
There’s been some concern over the proposed new development going in at the site of the old Third Street Neighborhood Historic District. Some people are saying that the modern exterior clashes with the look of the other buildings in the historic district. But Historic Resources Group did a report and found that, according to local and federal guidelines, the design is acceptable. The Santa Monica Landmarks Commission also approved it, so it looks like this one is a-go.
There have also been concerns about the loss of parking. Some comments on the developer site include these gems;
“This must be a joke because what a shameful use of prime land!!!! I would rather this stay a parking lot and wait for a better development because 2 units over a market is about the stupidest thing I’ve seen on this site.”Santa Monica Resident
“There should be a law where if a residential building replacing a parking lot that houses fewer people than the lot did cars that everyone associated with that mess goes to prison. Just a week or so to think deeply about what they’ve done.”Santa Monica Resident
What do you think about the proposal? Do you also believe we need more parking around that area?
There are 70 homes available for sale in Santa Monica today.
There are 13 in escrow and there have been 12 closings in the past 30 days. This is for all areas of Santa Monica.
On the north side of town, North of Wilshire Blvd and North of Montana Ave, there are 37 houses to choose from starting at $2.8M in Santa Monica Canyon.
Here’s your North of Montana Real Estate Update
There are currently 21 Active listings in the 90402 “Flats”.
Three came on the market since my last update:
714 7th Street – Listed for $5,750,000. Renovated in 2006, this single level home wraps around a courtyard pool. Just under 2,500 sqft with 3 bedrooms. Last sold in 2004 for $1,250,000.
411 26th Street – Listed for $3,295,999. This side of 26th enjoys a Santa Monica mailing address but is actually the city of LA. Clean, “livable lot-value” on an approximately 8,300sqft lot.
2515 Marguerita Avenue – Listed for $4,395,000. This updated 2,500 sqft 4 bedroom home is a good value and should be under contract quickly. Last sold in 2008 for $1,575,000.
There are 5 in escrow
1241 Georgina Avenue – Listed for $4,995,000
528 18th Street – Listed for $6,645,000
304 14th Street – Listed for $5,495,000
518 Euclid Street – Listed for $3,950,000
724 Euclid Street – Listed for $3,300,000
Only two have sold since my last update
472 23rd Street – Sold for $4,999,500. Originally listed at $4,895,000.
611 10th Street – Sold for $4,250,000. Originally listed at $5,350,000.