The luxury real estate market is still experiencing exponential demand and “Million Dollar Listing Los Angeles” star Josh Flagg told “The Claman Countdown” that people having extra money to spend is to credit.
“The bottom line is this: There’s a lot of money available,” he said. “People have money and I don’t know where it came from all of a sudden… You think during a pandemic, you know, the last thing you would think that people would be doing is buying real estate. It’s totally counterintuitive.”
Flagg repeated that he does not know where extra cash flow is coming from, but it’s evident that buyers are willing to spend it.
“It’s incredible,” he said. “And remember, for a minute, the market in New York was down. Remember, right before COVID, it was soft. And then it popped up like crazy.”
According to Flagg, the state of the real estate market is seemingly unpredictable and anyone who argues otherwise is “full of it.”
“There’s no answer,” he said. “I mean — this could stop tomorrow. This could go for another 10 years.”
Since earlier on in the pandemic when urban residents flocked to the suburbs and demand was blatantly urgent, Flagg expressed that not much has changed. Even in his primary market of Beverly Hills, inventory is still low.
In the last week, Flagg shared that he’s had four showings on a $30 million house which is practically unheard of in that high of a price range.
“I’ve never had four showings on the $30 million house before in my life,” he said. “Because there’s just not that many buyers at that price point… This is why people are having such a hard time getting houses because they’re being outbid left and right.”
Flagg promoted his new spinoff “Million Dollar Listings Los Angeles: Josh and Josh” which dives into the personal and professional lives of Flagg and real estate partner and former enemy Josh Altman.
“It took us a long time to get together. But now, you know, we’re best of friends,” he said. “We live a couple of blocks from each other. We’re on the phone three times a day. We do tons of business together. And this show is different, I guess, also, from “Million Dollar Listing” because it’s really focused on listings that are outside of Los Angeles.”