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Tracy, Altman & Flagg Break Down “Incredibly Frustrating" Market Changes: “Ruins Our Life”
MDLLA agents Tracy Tutor, Josh Altman, and Josh Flagg explain exactly why their sales are down in Los Angeles.
A lot has changed for Josh Flagg, Tracy Tutor, and Josh Altman since Season 14 of Million Dollar Listing Los Angeles concluded, and as the video above shows, that includes the real estate market.
In the clip, which is a preview of the July 10 Season 15 premiere, Tracy talks to her team about their current business. "This is an incredibly frustrating market," she says. "Listings were coming last year that were super easy. It ain't that market anymore."
In separate episode interviews, Tracy and Altman explain exactly why their businesses have taken a hit after Los Angeles passed Measure ULA, a transfer tax also known as the "mansion tax."
What is the Los Angeles "mansion tax"?
"The citizens of Los Angeles voted to have a four percent tax on sales over $5 million," Tracy says in the clip, to which Altman adds, "If you have a house 10 [million dollars] and up, you pay five-and-a-half percent when you sell the house."
In conclusion, Tracy declares, "Sellers don't want to sell, so that ruins our life."
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In a June interview with The Daily Dish, Tracy explained more about why sellers are hesitant to say goodbye to their homes in the current market.
"Obviously in L.A., we’ve got a couple of new challenges," she said. "Number one, we have a new tax that went into effect and that has really crushed development in the market, and, of course, anybody who bought a house in the last three years at the lower interest rates isn’t really interested in selling because their interest rates change."
"To sell a house that’s north of 10 million now costs you five-and-a-half percent in transfer tax, plus an additional five or so percent in commission," she continued. "So, you’re looking at close to 11 percent in trading fees, which can shift the narrative for the seller. So, people are holding onto their homes, rightfully so."
Tracy Tutor and Josh Altman open up about expanding their businesses to new cities
With that in mind, Tracy and Altman have expanded to other locations.
"If you want to know the truth, the market sucks," Tracy explains in the video above. "With the sales down in Los Angeles, I'm tapping Texas more, I'm tapping Orange County more."
Noting in the clip that he is "down this year, probably 25 percent," Altman reveals he has also beefed up his business in Orange County.
"We're building the Newport Beach office," he says. "So whatever we've lowered down to in sales in L.A., we've gained in Newport."
However, that doesn't mean business is coming easy.
"We're in a difficult market," he says. "I have no choice but to take every listing, so I don't have any extra time."
Tracy feels similar pressure to take whatever comes her way.
"In this current market, I am doing whatever I have to do," she says. "Because I have two kids to send to college."
Josh Flagg explains why he is not expanding his business to other locations
Flagg, meanwhile, is taking a different approach.
"I'm doing a lot better than I would've expected," he says. "I stick to what I know, which is Bel Air, the Bird Streets, Beverly Hills. I'm not interested in going to Orange County or Mars."
— Additional reporting by Shannon Raphael
