Two home sales, each exceeding $45 million set U.S. records for 2010
In April, Texas Energy executive Kelcy Warren purchased a Colorado property for $46.5 million. Hot on the heels of this transaction, an un-named Indonesian buyer contracted in May for a 48,000 square foot Bel-Air mansion for an amount reported to be close to $50 million. Some brokers speculate that these transactions illustrate a return of the wealthy to the upper-tier housing market.
Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing – which trains agents in the luxury market and awards an international designation to the most successful –reports that, “Institute members from many markets across the country are telling us that buyers at the top of the market are looking again and that many are cash buyers. We believe this anecdotal evidence may herald the return of the very affluent to the national residential market.” But is this the case in our local market?
Certified Luxury Home Marketing Specialist, Linda Sandlin, a luxury home professional with the Sandlin Team at RE/MAX Results Realty, reports that the upper tier market in Marco Island is experiencing an up-tick in activity. “Inquiries and showings are up in our high-end market and that’s a good sign. What’s more, we just sold and closed on the highest recorded golf course home sale on the island, 710 Hideaway Circle,” Linda explained.
“In the recent economic downturn, the wealthy experienced substantial drops in their portfolios and felt the uncertainty of global economic conditions, said Moore-Moore. “As a result, the luxury market shrank across all product and service categories, including housing. In addition, many wealthy converted investments to cash and have been watching and waiting on the investment sidelines. Today, many are looking at U.S. home values and deciding to buy another residence as both a lifestyle decision and a portfolio play. Although the current turmoil in global economies is a wild card which could change things, we think the luxury home buyer is re-entering many markets and shopping for fabulous homes as smart investments.”
