T
he luxury home market in Los Angeles is bucking the national trend, with high-end properties selling at a brisk pace. According to Realtor.com, over 6,600 homes priced between $1 million and $5 million sold between January and May, with an impressive 25.4% of those transactions paid for in cash.

    This surge in all-cash deals is attributed to deep-pocketed buyers who are less concerned about interest rates and more focused on lifestyle, investment diversification, or long-term value. Despite the city's stringent mansion tax, which imposes a 4% fee on home sales over $5.15 million, these buyers remain unfazed.

    In fact, the percentage of all-cash deals increased alongside price tags, with up to 56.7% of buyers paying cash in transactions priced above $10 million. This trend is particularly evident in neighborhoods like Beverly Hills and Bel-Air, where luxury homes are highly sought after by celebrities and foreign buyers.

    Foreign buyers, particularly those from China and Canada, made up nearly 15% of luxury LA sales this spring. The dominance of these demographics is a clear indication that the city's luxury market remains strong, despite ongoing economic uncertainties and housing shortages that continue to affect most residents.