Palm Springs Experienced the Largest Annual Increase in Ultra-Luxury Sales Volume in 2023
Wealthy buyers showed continued interest in ultra-luxury real estate in America throughout 2023 as annual sales volumes increased in several markets year-over-year with the highest annual increase in Palm Springs, according to the 2023 Ultra-Luxury Report from Compass.
The overall sales volume totaled $26.84 billion across 1,560 transactions, all above $10 million, with vacation and second home markets leading the way. 28 key markets experienced a rise in sales volume despite increased lending values and tight inventory. Of these markets, Palm Springs’s ultra-luxury real estate market experienced the largest increase in sales volume at 227% year-over-year, totaling $678.18 million in sales, with a 114% increase in transactions.
According to the Compass report Jackson Hole’s real estate market increased the next highest increase in their total annual sales volume at 96%, Martha’s Vineyard 67%, and Sun Valley 45%.
Overall, Manhattan had the top market spot for ultra-luxury real estate, with $4.92 billion across 256 transactions in 2023. Los Angeles was moved to the second-highest ultra-luxury real estate market with a 5% decrease in ultra-luxury real estate sales year-over-year. Despite L.A.’s ‘mansion tax’ activation, there was still a total of $4.35 billion of overall transactions in 2023 for the area.
“South Florida, Silicon Valley, Orange County, the Hamptons, and Aspen also remained among the nation’s most robust ultra-luxury markets, with Hawaii and Greater Palm Springs gaining momentum toward joining this notable group.” Says the report.
Additionally, architecturally significant homes and unique properties experienced a notable amount of interest from wealthy buyers. Also noted in the report was an increase in all-cash sales, most likely due to higher borrowing costs.
In conclusion, Compass expects demand for luxury and ultra-luxury real estate to maintain consistent demand from affluent buyers throughout 2024.
“We anticipate another robust performance in 2024. The consistent allure for high-quality properties continues.” Stephen Ferrara, The Hudson Advisory Team, Compass New York.
Visit www.luxuryatcompass.com for the full report.