It was a banner year for homes on the ultra-luxury market. While the traditional luxury market has continued to fare well since the recession, the ultra-luxury market has floundered somewhat as home purchases in the tens of millions of dollars stood at a standstill while the nation focused on recovery.
It seems that recovery has made significant steps in 2014. According to real estate appraisal service Miller Samuel, there were more sales of U.S. homes priced between $50 million and $99 million in 2014 than in the previous 10 years combined. The appraiser reported that 20 homes in that price range sold in 2014, including a number of high-profile properties in Southern California.
In the years leading up, there were only a handful of ultra-luxury home sales. In 2013 there was just one sale, which was down from four such sales in 2012, two in 2011 and one in 2010. Last year also saw three homes sell for more than $100 million or more, which was up from the previous three years, which each recorded one sale at this price level.
A strong factor behind the uptick of homes at the super luxury price range is the volatility of foreign money markets such as in China and Russia. Instead of putting their money into their respective recessing economies, wealthy investors are opting to sink their money in U.S. real estate, which is rapidly gaining value.
New York has been cited as the leader in ultra-luxury investments, with many opting for penthouses in the super high-end condo buildings that seem to be popping up on all sides of Central Park. In Southern California, however, luxury buyers know they are getting a whole lot more for their dollar. Los Angeles and its surrounding communities are among the few luxury bastions that are still dealing in single-family housing and property.
Pacific Palisades Offers a Luxury Paradise
With the perfect blend of city life and natural beauty, the communities such as Pacific Palisades have become ideal for home buyers that range from traditionally luxury to super luxury. According to Altos Research, a California-based real estate analytics company, homes in Pacific Palisades are gaining value while the amount of properties available on the market is tempering just before the busy spring season.
Altos reports a recent rise in the median single-family home value, coming to a current value of about $3,871,615. Throughout 2014, home prices were riding the wave after coming down from a peak value of about $4.15 million at the close of 2013. The year ended up being a very strong one however, with values rising at a healthy pace through the last two quarters.
Being such an exclusive community, Pacific Palisades always manages to keep its demand high with a limited number of properties available to luxury buyers. There are currently about 67 luxury homes on the market, but with the progression of the spring season in just a few weeks, home buyers looking to get into the community may be surprised with fresh inventory.
Are you interested in the luxury homes in Pacific Palisades? If so, please contact our team of luxury property experts today.