At least 40 residential properties sold for more than $50M in the US during 2021.
“Unprecedented” Sales Volume of Properties Priced Over $50M
According to data compiled by Miller Samuel Appraisers, a minimum 40 residential properties sold for more than $50M during 2021. This is an increase of approximately +35% y/y and 2020 itself was a record-setting year within the super-lux sector.
Jonathan Miller, Miller Samuel’s president and CEO, said, “The surge in this tier is unprecedented. We’ve never seen this kind of growth.”
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Super-Lux Sales Fueled by Combination of Booming Stock Market, Low Interest Rates & Pandemic Emphasis on Home Life
Without 2021’s trifecta of a booming stock market, low interest rates and the pandemic’s heightened emphasis on home life, the staggering number of super-luxury sales would not have happened.
Miller believes, “Not enough words have been written on the impact of low rates, even on the uber-wealthy. And one big takeaway in housing is: The lower the rates, the higher the prices. And this (super-luxury sales surge) is that phenomenon on steroids.”
Eight Most Expensive Homes Sold for $100M or More
According to Miller Samuel’s data, the eight most expensive homes sold so far in 2021 in this super-lux tier did so for $100M+. (Miller’s expecting more super-lux sales to close out the year.) The homes were spread across the Los Angeles metro are, the New York metro area, Palm Beach FL and ranches in Montana.
New York vs Florida
People can talk as much as they’d like about wealthy people fleeing high-tax states but New York topped the list with 13 sales over $50M while Florida came in with 11 sales. The most expensive sale in Florida was $122.7M; the most expensive sale in New York City was $157.5M
That being said, the total value of Florida’s super-luxury sales came in at $941M while the total value of New York’s super-lux sales came in at about $931M.
In New York, more than one third of sales occurred in the Long Island enclave of the Hamptons. In Florida, the action centered in Palm Beach and Manalapan.
Common Elements
The most expensive homes within the super-luxury tier shared the following elements:
- Water
- Views
- Massive square footage
- Massive acreage
Super-Luxury Market Tier Is NOT the Housing Market
Miller cautioned against extrapolating from these super-luxury sales to the wider housing market. Miller said, “(These super-luxury sales) suggest – or illustrate- the widening wealth gap. In many ways, it’s a circus sideshow. It has very little, if anything, to do with local markets, and has everything to do with a global perspective and investing in tangible assets instead of financial instruments.”
Thanks to Bloomberg and Miller Samuel Appraiser.
