Luxury housing markets in areas like Aspen, Beverly Hills and The Hamptons are showing no sign of slowing down, and experts believe it’s a sure sign that economic worries aren’t deterring wealthy buyers from snapping up properties.
According to CNBC, the rich still see real estate as a solid investment, even though the recent problems with China’s stock markets and concerns about global growth are worrying experts elsewhere.
New sales data from Douglas Elliman shows that the median price of a single-family home in the Beverly Hills area hit $5.5 million in Q4, a stunning 54 percent rise from the same quarter one year ago.
Douglas Elliman notes that Aspen’s median single-family home price shot up too, by 35 percent to $6.7 million. Meanwhile in The Hamptons, the median home price there hit a record high of $2.39 million. Moreover, The Hamptons saw a record number of homes sell for over $5 million and also $10 million.
“There’s a general perception that the luxury market across the U.S. is weaker than the middle or lower end,” said Jonathan Miller, president of appraisal company Miller Samuel. “But in the most highly regarded areas, like Beverly Hills, the market is strong.”
Miller says it’s pretty normal for the biggest sales to occur in the fourth quarter, so these latest figures aren’t an anomaly.
“I’m not sure why, but ever since the financial crisis, the largest activity has come at the end of the year,” he pointed out.