Rich people who have benefited from the Covid-19 pandemic situation are
hunting for luxury properties in America throughout 2021. Last year's luxury
home transactions in this country reached US $ 40 billion.
Based on data from real estate broker Compass Inc, transactions for luxury
homes starting at US$ 10 million last year reached 2,300. That's an 112%
jump compared to 2020.
The most crowded sales transactions for luxury homes occurred in Los
Angeles, followed by Manhattan and Palm Beach.
The total value of residential real estate transactions of US$10 million or
higher changing hands in 2021 of US$40 billion is more than double the value
recorded the previous year.
On New York's Long Island alone, there are five properties that sell for $10
million and over. The transaction value reached US$ 101 million.
The booming stock market and the era of low interest rates over the past two
years have brought benefits to the richest people in the world who make up
0.1% of the world's population. Their wealth is increasing.
The luxury home market in turn is flooded with wealthy people aiming to
trade and at the same time protect their money from rising inflation.
However, amid the prospect of a tighter Fed policy and stock market
volatility, luxury home purchases are starting to show little sign of
slowing down.
"Many see luxury real estate as a safe and valued asset that is a hedge
against inflation," said Kompas agent Carl Gambino in a report quoted by
Bloomberg, Thursday (10/2).
According to Compass data, the fastest-growing markets were in Austin and
suburban Long Island, excluding the Hamptons, with an increase in
transactions of more than 400%.
Texas looks very promising for future sales in 2022, especially the
waterfront properties and farms there. Luxury purchases in Austin totaled
nearly $190 million last year, while Dallas totaled $115 million.
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