Positive. Sales of $100 million+ homes set to double, driven by strong recovery in luxury market.

From CNBC: 2024-07-26 18:13:19

Sales of $100 million homes are set to double this year, driven by rising financial markets and rate cut hopes. Data from Miller Samuel and Douglas Elliman show six $100M+ homes sold in the US by mid-July, with the potential to surpass 2021’s record of nine such sales.

Luxury real estate markets are rebounding, with ultra-luxury homes priced at $50 million, $20 million, and even $10 million signaling a strong recovery. Notable sales include a $115 million penthouse in Manhattan’s Central Park Tower and a $135 million penthouse in Aman New York. San Francisco and Florida are also seeing record sales.

Redfin reports a 13% increase in sales of homes priced at $5 million or more compared to last year. Christie’s Mid-Year Luxury Outlook highlights strong high-end market demand, with sales surges in Naples, Florida, and Montana. Ever-increasing luxury property prices are driving the surge in ultra-luxury real estate.

The ultra-wealthy continue to drive sales with cash purchases, disconnected from the typical housing market. Ultra-luxury is a global market barometer responding to record-breaking stock markets. Additionally, the $80 trillion Great Wealth Transfer is boosting sales, as new, larger, and feature-rich homes become more desirable post-Covid.

For now, the ultra-luxury real estate market is thriving despite election-related uncertainties. Wealthy buyers are capitalizing on market conditions and are unaffected by potential election outcomes in the second half of the year. The ultra-luxury market remains a strong, cash-driven, and globally influenced segment of the overall real estate landscape.



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