U.S. Trophy-Home Market Poised for a Banner Year
The market for $50 million-plus home sales got off to an incredibly strong start to 2021, with the number of listings and sales on pace to outdo previous years
The rarefied U.S. market for homes priced at $50 million or more is having a banner year, with sales and listings already on pace to outnumber 2020 and the years preceding it.
The surge at that very top end is being propelled largely by increased wealth, a renewed focus on and appreciation of what home is and a lack of other spending options over the past year, according to experts.
In the four months to the end of April, the $50 million-plus market was well ahead of previous years. Sellers across the country had already listed 30 ultra high-end homes at that price level and seriously deep-pocketed buyers had purchased eight, according to data compiled by online property portal Redfin for Mansion Global.
In Los Angeles, the amount of $50 million-plus properties available on and off the market is substantial, according to Tomer Fridman of The Fridman Group at Compass.
“This is one of the busiest years in L.A. history in terms of transactions and the price value for property here has increased compared to years before,” he said.
There are currently 20 properties listed publicly for sale priced at or in excess of $50 million in and around the city, 16 of them having been listed to date this year, making it the national hotspot for uber-high-end listings, according to records.
“The past year has shown that not only is L.A. a stable investment for a home—and we learned how important the home is—but the market has proven to withstand any shutters in consumer confidence and offer buyers both a major global city and large acreage to create security and privacy in the estates,” Mr. Fridman said.
Mr. Fridman’s most recent deal in the $50 million range came just before Christmas, he said, with the sale of the city’s famed Owlwood Estate that sold for $88 million.
“Perhaps Covid causing a lack of travel, concerts, filming and athletics allowed for certain buyers in this price point to have more time to look at purchasing and touring homes.” But even without the pandemic, “this trajectory and massive cash in capitals of the tech [and] start up industry likely would have unveiled with or without Covid,” he said.
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