April 4, 2013
Barring New York, the Beverly Hills, CA, market had the highest volume of real estate sales that started at $10 million in 2012, according to the 2013 Coldwell Banker Previews International Luxury Market Report.
Other cities that ranked high in terms of the number of sales and listings of more than $10 million include New York; Aspen, CO; Montecito, CA; Bel Air, CA; Malibu, CA and Greenwich, CT. The report uncovered that there are a few up-and-coming areas that have not always been considered luxury real estate hubs.
“I was quite surprised to see Aspen have almost as many high-end sales as Beverly Hills,” said Betty Graham, president of Previews International at Coldwell Banker Residential Brokerage, Beverly Hills.
“We are also seeing high-end buyers find value in beautiful, but more undiscovered, areas just outside of well-known luxury markets,” she said.
“We are now looking at the hidden gems of the United States.”
The Coldwell Banker Previews International Luxury Market Report ranks the top cities and ZIP codes with the most luxury listings in the $1 million-plus, $5 million-plus and $10 million-plus price ranges.
Hot spots
Luxury real estate seems to be bouncing back as many affluent consumers are purchasing more homes.
Beverly Hills, CA, reported the highest volume of luxury home sales starting at $10 million in the ZIP code of 90210. This ZIP code saw 21 luxury home sales in 2012.
Luxury real estate in Beverly Hills, CA
Other areas that saw the highest volume of luxury real estate sales in 2012 are Aspen, CO; Montecito, CA; Bel Air, CA; Miami Beach, FL; Brentwood, CA; Malibu, CA; Atherton, CA; Greenwich, CT and Miami, FL.
Malibu, CA, also topped the list with the highest number of luxury real estate listings, $10 million and up, with 65 listings.
Areas that also reported a high volume of luxury real estate listings are Beverly Hills, CA; Aspen, CO; Bel Air, CA; Montecito, CA; Greenwich, CT; Miami Beach, FL; Laguna Beach, CA; Atherton, CA and Naples, FL.
These rankings do not include New York, which reported 71 sales of luxury real estate and 176 listings of luxury real estate in 2012. The Upper East Side neighborhood in New York had the most sales and listings.
Restoring confidence
The high number of real estate sales in the $10 million and up range indicates that affluent consumer confidence is coming back strong.
“I think this does speak to the tremendous confidence of buyers in the luxury market,” Ms. Graham said.
“High-wealth individuals are feeling confident again,” she said.
Confidence seems to be increasing among affluent consumers, in general. This group is feeling more confident about the economy as well.
Forty-six percent of affluent men with a household income of more than $250,000 are optimistic or very optimistic about the U.S. economy, while 21 percent of women express the same sentiments, according to a monthly report from the Shullman Research Center (see story).
With an overall feeling of confidence, it seems that luxury real estate sales are expected to continue in the upward trend.
“I think the future is very bright for the high-end real estate market and real estate, in general,” Ms. Graham said.
“People follow the money and this gives the rest of the market confidence,” she said.
Final take
Erin Shea, editorial assistant on Luxury Daily, New York
Share your thoughts. Click here
