Luxury Housing Market Showing Signs Of Recovery With $100 Million Record-Setting Residential Sale

Top Quote Russian billionaire buys Silicon Valley home. Luxury housing market showing signs of recovery. End Quote
  • Phoenix-Mesa, AZ (1888PressRelease) April 09, 2011 - 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.

    "Evidence of this positive trend for luxury home sales is resides in the Valley of the Sun, too," said Jeff Daley, a luxury real estate professional with Keller Williams Arizona Realty located in Scottsdale, AZ. The year over year 2009-2010 comparison saw a 5.3% increase in sales of $1 million dollars or more in closed transaction for Maricopa County, Arizona.

    "While we don't have triple digit luxury homes in our market," said Daley "we currently have 1,472 homes priced at $1 million or more listed for sale. 217 million dollar plus properties have sold in just the first quarter of 2011. The most expensive home for sale locally has an asking price of $22,000,000. This is a 12 bedroom, 8 bath, 6 car garage home on a private forty acre estate that's located in Paradise Valley, Arizona."

    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."

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