The luxury housing market in the United States thrived this year like never before, notching at least 40 homes sold for at least $50 million.
Home sales for at least $50 million increased 35 percent year-over-year, according to data from appraiser Miller Samuel reported by Bloomberg. The surge means sales in the sector this year shattered the previous record set in 2020.
Low interest rates and a hot stock market were among the contributing factors to the unprecedented activity among the wealthiest buyers in the United States.
“Not enough words have been written on the impact of low rates, even on the über-wealthy,” Miller Samuel president and CEO Jonathan Miller told Bloomberg. “And one big takeaway in housing is: The lower the rates, the higher the prices. And this is that phenomenon on steroids.”
Miller Samuel recorded eight properties trading hands for at least $100 million.
The year’s biggest sale came in Montana, where Rupert Murdoch recently spent $200 million on a 340,000-acre ranch. The deal is also the biggest sale in the history of the state.
New York state led the country with 13 sales valued at $931 million. The state’s biggest sale came at 220 Central Park South, where a duplex sold for $157.5 million to Alibaba co-founder Joe Tsai. More than a third of the New York’s super-luxury sales were in the Hamptons, led by the sale of the Ford family estate in Southampton for $105 million.
Florida was in second place for super-luxury sales this year, seeing 11 purchases valued at $941 million. The biggest sale of the year in the state was at 535 North County Road in Palm Beach, traded for $122.7 million.
While California had fewer super-luxury sales, the state was home to the year’s second most expensive sale. That belonged to venture capitalist Marc Andreessen, who bought a seven-acre property in Malibu along the Pacific Ocean for $177 million.
[Bloomberg] — Holden Walter-Warner