Top 2% of Luxury Real Estate Market Still Selling
Despite growing indications of a cooling housing market, one niche continues to sell briskly, luxury multimillion-dollar luxury Las Vegas homes sales including the Las Vegas luxury real estate market.
Over the past few months in the overall U.S. real-estate market, more homes have crowded the market and sales volumes have fallen. Yet one area of the market appears immune to all that: In many locations, including Las Vegas real estate, homes on the luxury end of the price scale — those costing $3 million and up — have been selling in increasing numbers.
In San Francisco, 18 homes in that range sold in the first quarter, up from 15 in the same period last year, according to real-estate information service DataQuick. In Jackson, Wyo., that number rose to 21 homes from 17, according to Jackson Hole Real Estate and Appraisal. Higher up the scale, 10 homes at $5 million or more in Palm Beach, Fla., sold in the first quarter, up from eight last year, says the county assessor’s office.
Paying in Cash for Luxury Real Estate
Homes at $3 million and up represent less than 2% of the overall market, estimates the National Association of Realtors. Activity at this small upper end has traditionally been a leading indicator for the broader market. More buyers are paying in cash. (The National Association of Realtors found that 8% of home buyers paid in cash last year, up from 6% in 2003.) That has left luxury home buyers mostly insulated from economic factors such as rising short-term interest rates.
When Todd Michael Glaser listed his 11-bedroom Miami home in February, overall sales volume in the city was slipping — sales fell 21% for the month over a year earlier. But he wasn’t concerned. He listed it for $40 million, well above Miami-Dade County’s record single-family home sale of $27.5 million in 1999.
Mr. Glaser, a 41-year-old real-estate investor, figured the property would sell based on its amenities and location. The 20,000-square-foot home is one of the biggest on North Bay Road, where neighbors include Billy Joel and Matt Damon. A month after hitting the market, it went under contract for purchase. Brokers with knowledge of the deal put the price at over $30 million, though Mr. Glaser wouldn’t reveal the number. “It’s not a property for the everyday home buyer,” he says.
In Los Angeles County, 217 homes priced over $3 million sold during the first quarter, up from 114 during the same period last year. That is the biggest first-quarter jump since the firm started tracking sales in 1988. For the same period, the number of all sales in the county fell 10.3%, according to DataQuick. Two homes priced above $10 million sold in Santa Barbara, Calif., during the first quarter — including a $28.5 million, 17-acre oceanfront property to actor Kevin Costner — up from one a year earlier.
Talk of a slowdown hasn’t affected Sean Wolfington, a former Philadelphia Internet entrepreneur, who just outbid two other buyers on a six-bedroom estate in Key Biscayne, Fla., formerly owned by the singer Cher. The cost: $8.8 million, in cash. “Interest rates aren’t a factor for me,” says Mr. Wolfington, 34, who now runs an independent film company. “Waterfront properties like these are in limited supply. I saw this as an excellent buying opportunity.”
Source: The Wall Street Journal Online
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Top 2% of luxury multi-million Las Vegas real estate as well as US real estate market not affected by rate increases.