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Luxury Home Sales Outperform Market Overall in 2006 | 06-25-2007

Excerpts reprinted from The Institute for Luxury Home Marketing

From New York City to Malibu and Palm Beach, the 2006 US real estate market boasted at least ten buyers willing to pay $28 million or more for high-end residences.

Topping the year's list of most expensive homes sold in the US was a 63-acre estate with a 10,000 sq. ft. mansion just five miles from Manhattan in Alpine, New Jersey.  Advanced Photonix CEO Richard Kurtz bought the English-style residence with guest cottages, pool and tennis courts from Henry Clay Frick II for $58 million, a price substantially below last year's record-setting $70 million sale of financier Ron Perleman's Palm Beach Oceanfront estate.

Neither sale comes close to the standing world record, a $125 million London mansion sold in 2004 to steel magnate Lakshmi Mittal, who ranked number five on this year's Forbes list of billionaires, with an estimated net worth of $23.5 billion.

"Strong corporate profits, good news on Wall Street, and a global commodities boom helped grow fortunes and sparked a surge of demand for trophy homes in 2006," said Waco Moore, Vice President of The Institute for Luxury Home Marketing.  "Final numbers aren't in, but estimates are that the US's 2006 sales of homes priced at $5 million and above were up about 11% over 2005.

"Record Wall Street bonuses will jump-start 2007 luxury sales in New York," predicted Moore, "and we'll see spillover into other markets as well."

That could mean good news for homeowners on and near Lake Norman, an expanding market for luxury homes.

"Obviously, it's a positive when luxury home sales are up nationwide," said Tracy Frazier, owner and broker for Frazier Realty of Lake Norman. "In an up-and-coming area such as this one, it's great to know that the current market is flourishing, and we hope to continue that trend in the years to come."

Fortunes grew noticeably in 2006, as demonstrated by the 18% growth in the number of the world's billionaires, a list which now includes 793 names.  At least five current sellers of luxury homes are hoping these uber-rich billionaires will step up to pay $100 million or more for homes in 2007.  The priciest home for sale in the world -- Updown Court in Windlesham, England (near Windsor Castle) -- has a whopping price tag of $139 million.  This spec-built home has 103 rooms, five pools and a heated marble driveway.

Still, according to Moore, whose company trains real estate agents who work in the upper tier, "Fabulous homes are just one example of the luxury goods and services which are in demand.  This fall, Willem Kooning's 'Woman III' sold for a record $142.5 million, auction houses set art sales records, and yachts and private jet makers have waiting lists.  Around the world, from Russia to Great Britain, there is a super rich group with wants, needs and the wealth to satisfy those desires."

http://www.clhms.org/cms/news_press_detail.html?item_id=5



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