Ultra-luxury home sales in the U.S. are on pace to set a new record

A $115 million purchase of a duplex high above Central Park in June ended a nearly two-year drought for the city’s ultra-luxury real estate market. The closing was ultimately a turning point. Less than a month later, a nearby five-story penthouse went for $135 million.

With more than four months of the year still to go, home sales of $100 million or more are on pace to set a new record in the city. Billionaires globally have seen their wealth boom, generating momentum for major home purchases. The pace of sales is spurring optimism among agents tasked with finding buyers for other top listings around the U.S.

Nationwide, there have been six deals at $100 million or above this year through the end of July, just three shy of a record set in 2021. Those have stretched from Southern California, where an oceanfront estate notched a record for the state at $210 million, to Aspen, Colorado — where a transaction this year crossed the nine-figure threshold for the first time.

The pace of ultra-luxury deals isn’t expected to let up anytime soon. Over in Malibu, one agent is preparing to put a mansion up for sale in a private listing for $300 million, which would set a record for the most expensive U.S. home sale if it gets an offer at that level.

While the pool of potential buyers is still small, top-tier billionaires have watched their wealth swell over the past few years. In early January, the median net worth of the world’s 500 richest people was $9.3 billion, according to the Bloomberg Billionaires Index. By August, it was almost $9.9 billion, meaning a $100 million home purchase would account for just about 1% of their wealth.

 

Bargain-hunting billionaires

Sky-high listing prices won’t mean that the property always sell for that much. Both New York sales ultimately went for less than what the sellers initially asked. 

The transaction at Central Park Tower closed in June for about $60 million less than the $175 million Extell Development listed it for last year. In July, Vladislav Doronin shelled out $135 million for the very top floors of a project he’d developed, the Aman New York. That figure was lower than the $180 million that a different buyer reportedly agreed to pay for the unit in 2018. You can read more here.

Ultra luxury is not the only segment of the market that is performing. We are seeing optimism at all price points. We are anticipating a strong fall market. Enjoy the rest of your summer!