October 22, 2016

The Wealthy Still Want a Trophy Home

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The Wealthy Still Want a Trophy Home

Wealthy hot spots like the Hamptons, Beverly Hills, and Aspen are not seeing any shortage of home buyers in their ultra-luxury housing markets, proving the global market panic isn’t deterring the rich in real estate. The wealthy are still seeing real estate as a strong investment, despite recent turmoil in China’s financial markets and mounting concerns about global growth, CNBC reports.

Read more: Where the Millionaires Reside: 10 Top Cities

The median sales price in Beverly Hills for a single-family home reached $5.5 million, soaring 54 percent in the fourth quarter compared to the same period last year, according to sales data from Douglas Elliman. In the mountain resort of Aspen, its median single-family home price rose 35 percent to $6.7 million. The Hamptons reached a record number of homes that sold for more than $5 million and more than $10 million during the fourth quarter. In the Hamptons, the average sales price also hit a record high of $2.39 million.

"There's a general perception that the luxury market across the U.S. is weaker than the middle or lower end," Jonathan Miller, president of Miller Samuel, an appraisal firm, told CNBC. "But in the most highly regarded areas, like Beverly Hills, the market is strong."

The largest sales in recent years have occurred in the fourth quarter, Miller says.

"I'm not sure why, but ever since the financial crisis, the largest activity has come at the end of the year," he says.

Source: “Mansion Prices Hit New Highs in Super-Rich Enclaves,” CNBC (Jan. 28, 2016)