Ultra-Luxury Home Sales Increase in Second-Home and Low-Tax Markets in the First Half of 2023
Overall ultra-luxury real estate sales were down, but certain markets experienced an increase in ultra-luxury home sales, priced at $10M or higher, during the first half of 2023, according to Compass’ 2023 Mid-Year Ultra-Luxury Report.
While there was no change to the top 10 ultra-luxury markets year-over-year, with Greater Los Angeles, Manhattan, Miami, and Palm Beach at the top, according to Compass, high-net-worth buyers have recently gravitated to second-home and low-tax markets, due to higher interest rates and limited available inventory.
The report outlines several areas that experienced significant increases in ultra-luxury sales. Houston and Dallas-Fort Worth both experienced a 200% increase in ultra-luxury home sales in the first half of 2023. Ultra-luxury sales increased by 60% in the first half of 2023 for the Jackson Hole area, compared to the first half of 2022. Connecticut and Phoenix also had multiple $10M+ sales, with sales increasing 18.7% year-over-year for Phoenix.
The area with the most ultra-luxury sales out of all markets analyzed in the report was Greater Los Angeles with 160 deals $10M+ in the first half of 2023, totaling a sales volume of $3.21 billion. Most sales were attributed to the “mansion tax” deadline, which motivated buyers to make their purchases, according to the report.
Overall, ultra-luxury real estate sales across the United States in the first two quarters of 2023 summarized to 806 ultra-luxury real estate transactions, totaling in $13.85 billion sales, and displaying a continued demand for luxury properties and a resilience in ultra-luxury buyers.