Santa Monica Home Sales Before and After Measure GS
Santa Monica’s luxury real estate market has faced two major turning points in recent years: the introduction of Measure GS on March 1, 2023, and the Palisades fire in January 2025.
Measure GS added a 5.6% transfer tax on properties sold for $8 million or more. This created a sharp “cliff effect” that slowed down high-end sales almost overnight. Then, when the fire displaced families and investors in early 2025, demand shifted into Santa Monica, creating a short-term surge. By late 2025, the market began to normalize again.
This is what the data shows before and after these changes.
What is Measure GS?
Measure GS is a transfer tax applied when a property in Santa Monica sells for $8 million or more.
How it works in practice:
Sell for $7,999,999
Tax rate: 0.3%
Tax due: about $24,000Sell for $8,000,000
Tax rate: 5.6%
Tax due: about $448,000Sell for $10,000,000
Tax rate: 5.6%
Tax due: about $560,000
Anything at $8 million or above is taxed at 5.6% in full. Even a single dollar over the line means hundreds of thousands more in taxes.
The Single Family Residence Market Before Measure GS
Sales volume was steady and consistent.
Days on market averaged 30–40 days.
Supply hovered between 3–4 months, which favored sellers.
Homes routinely sold close to list price, reflecting strong demand.
The Single Family Residence Market After Measure GS
Luxury sales slowed, with fewer closings above $8M.
Active listings built up as sellers hesitated to transact.
Pending and closed sales thinned in the upper tier.
Days on market lengthened as buyers gained leverage.
The 2025 Fire Surge
The January 2025 Palisades fire brought an unexpected surge into Santa Monica:
Sale prices spiked in mid-to-late 2025.
Total sold volume jumped as displaced buyers looked for stability.
Supply tightened temporarily as listings were absorbed quickly.
But by late 2025, the spike had eased. The urgency faded, and Measure GS again acted as a brake on high-end activity.
Market Metrics: Before vs. After Measure GS in Santa Monica Homes
Active Listings
Before March 2023: Average of 4.2 per month
After March 2023: Average of 5.0 per month
Closed Sales
Before: Around 1.1 per month
After: Dropped to 0.7 per month
New Listings
Before: About 1.3 per month
After: Down to 0.8 per month
Average Sale Price
Before: Median around $9.7 million
After: Median closer to $11.2 million
Price Per Square Foot
Before: Median of $1,625
After: Median of $1,280
Days on Market
Before: Average of 42 days
After: Average of 55 days
Months of Supply
Before: 3.6 months
After: 5.4 months
Total Sold Volume
Before: About $44 million per month
After: About $18 million per month
Final Takeaway
For Santa Monica homes over $8 million, the numbers tell a three-part story:
Measure GS cooled the market with fewer closings, lower price per square foot, and longer days on market.
The Palisades fire in early 2025 drove a temporary surge as displaced buyers flooded Santa Monica, pushing prices and volume higher.
The market is now normalizing again with slower sales, higher supply, and renewed buyer leverage.
If you are thinking about selling, pricing strategy around the $8M threshold is critical. For buyers, the current slowdown offers more negotiating power in one of Los Angeles’s most sought-after markets.
The market is leaning more toward buyer’s conditions, with more supply relative to demand.
Bottom Line
If you own a luxury condo, estate, or land in Santa Monica worth $7 million or more, you are close to a critical tipping point. The moment your property crosses the $8 million line, Measure GS adds a 5.6 percent city transfer fee on the entire sale price. Depending on your property’s value, this can mean a very large loss at closing. Do not wait until it is too late. Contact us today for a complimentary property evaluation and a clear strategy to protect your equity before Measure GS takes effect.
Data Source: All market data and statistics in this report were obtained directly from the Multiple Listing Service (MLS). Figures are based on available listings and closed sales data at the time of writing and are considered accurate and up to date.