Luxury Housing Market Showing Signs Of Recovery
In a transaction which set a record for most expensive U.S. residential sale ever, Russian billionaire Yuri Milner (who heads Digital Sky Technologies) has reportedly paid $100 million for a 25,500-square-foot Los Altos Hills (CA) home which was not even listed for sale. This record-setting sale is just one indication that the wealthy have opened their wallets and are shopping for homes again.
Nationally, the million dollar and above housing market rose 4% in February year-over-year as luxury buyers snapped up homes, often for all cash. The jump in luxury purchases is counter to the real estate resale trend in general. In February, total residential sales dropped 2.8% as compared to February a year ago.
While Hot Springs, Arkansas does not have triple digit luxury homes in our market, we currently have 25 homes priced at $1 million or more listed for sale. While the luxury home sales have been down throughout the last couple of years, we are starting to see an increase in the number of showings of our luxury homes as of the first of this year. The most expensive home for sale locally has an asking price of $4,899,000, one of our finest listings, built by one of Arkansas’ finest builders – Ferguson Custom Homes of Little Rock.
Why the rise in luxury sales? According to Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing, an organization which trains luxury agents internationally, “The number of wealthy households in the U.S. and world-wide is almost back to where it was before the downturn. Add the fact that many high net worth individuals are reassessing their investments and rethinking how and where to invest. High-end U.S. residential real estate is now attracting many of these dollars, Euros, and Rubles. This bodes well for the luxury home market in the short term. Luxury may well be the real estate segment that leads the recovery.”
For more information on the luxury real estate market, please contact Hot Springs’ only certified luxury home marketing specialist, Jeff Kennedy with Hot Springs 1st Choice Realty at 501.655.6247 or online atwww.BestofHotSprings.com