Residential Real Estate Experts Share Their Predictions for 2023

West Coast

“We are barely finished working on the 2nd week of 2023, and I already feel a shift in our residential market here in Los Angeles. Our luxury property transfer tax will increase significantly on April 1st this year. Sellers are seriously pricing their luxury homes to attract buyers who will close before the new tax enactment. I feel optimistic about this year’s market in LA because negotiations between seller and buyer are more balanced than in the previous two years. Serious sellers have priced their homes to sell quickly and are better tuned to the prevailing market price than ever before.” - Ernie Carswell, Douglas Elliman Real Estate, Beverly Hills, CA

"For 2023, the San Diego market won't be as steamy hot as it has been the past few years, but overall, the appeal to own a home in America's Finest City still resonates for many buyers. Buyers in a position to buy should buy if they find the ideal property, and historically, real estate has been an asset class that appreciates long-term. With less competition and prices dipping, this may be an optimal time for buyers to take advantage of the market, especially as interest rates are projected to decline in 2023. We continue to see an influx of new residents from Northern California, Los Angeles, and cold weather states migrating to San Diego for its superb climate, lifestyle, tech-driven industries, and family-friendly communities.

A newly proposed mansion tax will go into effect in Los Angeles in April 2023, imposing a 4% tax on properties sold above $5 million and rising to 5.5% on properties above $10M. This could negatively impact the luxury market in LA and cause more buyers to move to San Diego." – Julie Han, Compass, San Diego, CA