The super-prime real estate market might not have been as strong in 2023 as the year prior, but the number of homes across the country that traded at $10 million and above is still impressive—especially in New York.
Per Compass’s Ultra-Luxury Report, the data found that 23 out of 79 markets across the country tallied up year-over-year growth in $10 million-plus residential transactions. In 2023, a whopping 1,560 homes were sold in that price range, racking up a total value of $26.8 billion.
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Even though sales of ultra-luxury homes dropped by a substantial 15.2 percent, it’s not as steep a decline as the sales of previously owned U.S. homes in all other sectors, which fell 19 percent from 2022, according to the National Association of Realtors.
Despite there being fewer transactions than last year, the activity was on par with pre-pandemic levels, and the trend is expected to carry into 2024, the report noted. “Amidst notable macroeconomic shifts, the ultra-luxury market in Manhattan experienced remarkable resilience over the past year,” added Stephen Ferrara of The Hudson Advisory Team at Compass New York.
For the second year in a row, Manhattan had the most trophy home deals of any other market in the nation. More specifically, 256 of all $10 million and above deals occurred in the Big Apple, totaling a hefty $4.92 billion.
Los Angeles was close behind Manhattan, with $10 million-plus home sales rivaling 2019 levels despite the state’s mansion tax going into effect. (The new law imposes a 5.5 percent tax on properties listed at $10 million and above.) “The most architecturally significant homes received elevated and persistent attention,” Sally Forster Jones of the Sally Forster Jones Group at Compass Los Angeles said in the report. “When these special properties were offered in the luxury marketplace, judicious buyers absolutely bought them and were not afraid to pay the price.”
Elsewhere, in Phoenix, ultra-luxury home sales soared 23 percent in 2023. “The local luxury market is thriving as a seller’s market thanks to continued demand of cash buyers and growth of the industry bringing C-level executives and entrepreneurs to the market,” said Compass Arizona agent Chris Karas. The tried-and-true resort and vacation destinations of Palm Springs, Jackson Hole, and Martha’s Vineyard also experienced year-over-year growth.
“The findings of this report are a testament to the compelling strength of the ultra-luxury sector even in the face of headwinds,” Felipe Hernandez Smith, head of Compass Luxury, said in the report. “The continued enthusiasm for ultra-luxury properties underscores the enduring value of exceptional real estate.”
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