Tuesday, May 18, 2010
WEALTHY SPENDING AGAIN ON LUXURY HOMES
Two home sales, each exceeding $45 million set U.S. records for 2010. In April, Texas Energy executive Kelcy Warren purchased a Colorado property for $46.5 million. Hot on the heels of this transaction, an un-named Indonesian buyer contracted in May for a 48,000 square foot Bel-Air mansion for an amount reported to be close to $50 million.
If the Los Angeles transaction closes, it will bump the Colorado sale to set the newest record for this year’s priciest residential transaction. Some brokers speculate that these transactions illustrate a return of the wealthy to the upper-tier housing market. Photos and details of the Colorado property can be seen on the April 30th post at http://HistoricHomesinFlorida.blogspot.com.
Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing – which trains agents in the luxury market and awards an international designation to the most successful –reports that, “Institute members from many markets across the country are telling us that buyers at the top of the market are looking again and that many are cash buyers. We believe this anecdotal evidence may herald the return of the very affluent to the national residential market.” But is this the case in our local market?
Founding Member Marilyn Farber Jacobs, a luxury home professional with Realty Associates in Boca Raton, reports that the upper tier market in Boca Raton is experiencing an up-tick. “Our Boca Raton luxury market currently has 14 homes on the market listed between $10,000 and $22,000,000. Inquiries and showings are up in the luxury market and that’s a good sign. “What’s more,” says Jacobs, “according to the Multiple Listing Service, 63 homes sold at $1,000,000+ so far in 2010 with the highest sale for a point lot Sun N Surf intracoastal deepwater property at $6.8MM, on the market for 420 days; original price was $16.900MM.”