It’s been quite a year for the luxury real estate market. While homes in the average price range persisted in its slow pick up in sales, the luxury market broke quite a few records in sales and dollars spent on homes. At the center of the luxury market maelstrom has been Los Angeles, which saw two very high-profile luxury sales of its own as well as a number of factors that have resulted in a booming high-end market.
This thriving market has led to the shattering of a record for Los Angeles County for the most money spent on a luxury home. First, the exquisite Fleur de Lys mansion sold in March for a reported $88.3 million. This transaction has been the subject of much speculation as the buyer of the home is still not known to the public. Initial reports also stated that the property was bought from former owner Suzanne Saperstein for $102 million, however those reports proved false.
The second record-breaking sale came a little later in the year when billionaire and ‘Minecraft’ scion Markus Persson shelled out $70 million for a truly remarkable Bruce Makowsky spec home. Persson reportedly paid cash for the property and closed on the home in just six days.
Persson’s investment is emblematic of the burgeoning interest in Southern California luxury properties from foreign investors, an indicator that the wealthy are doing very well throughout the world.
“New York, Miami, and Los Angeles are now seen as the key safe havens in the U.S. for investments in property,” said Royce Pinkwater, founder and CEO of Pinkwater Select, to Forbes. “The deals have grown exponentially in part because of how expensive Europe is, and London.”
Luxury Market Looking Up Across the Country
Los Angeles isn’t the only booming luxury market in the United States. Two of the largest real estate deals for the country took place on the East Coast.
In April, a 50-acre Copper Beech Farm broke the record for the nation’s most expensive home purchase when it sold for $120 million. Not long after that sale the record was broken yet again when hedge fund tycoon Barry Rosenstein bought an East Hampton estate for $147 million, which remains the most expensive home sale in U.S. history.
Never one to sit out of the luxury real estate game, Los Angeles looks to recapture that title with the listing of what might be the most expensive home in the country: Palazzo di Amore. In early November billionaire Jeff Greene put the sprawling Beverly Hills estate on the market for $195 million. Although the home has yet to fetch a buyer, it could result in a new record being set in 2015.
“This super high-end market–$50 million and above–is the circus sideshow,” says Jonathan Miller, president and CEO of Miller Samuel Inc., a New York real estate appraisal firm and consultancy. “It’s a global phenomenon, a phenomenon of the wealthy preserving capital. It’s a long-term investment play that has nothing to do with the traditional housing market as we know it.”
Los Angeles’ luxury homes are among the most exquisite in the nation. If you would like to learn more, please feel free to contact our team of luxury property experts today.