Ultra-Luxury Real Estate Market Booms with Record Sales

Sales of $100 million homes are set to double this year. The ultra-luxury real estate market is booming, driven by surging financial markets and hopes for rate cuts. Six homes in the U.S. have already sold for over $100 million as of July 15. If this pace continues, it will more than double last year's total and likely surpass the record of nine homes sold in 2021.

Manhattan saw two blockbuster deals recently. A penthouse at Central Park Tower sold for $115 million. Another penthouse at the Aman New York went for $135 million to a Russian-born billionaire. Palm Beach's Tarpon Island fetched $150 million in May. A Malibu mansion sold for $210 million, the most expensive home ever sold in California.

Even San Francisco is seeing ultra-luxury activity. Laurene Powell Jobs, the billionaire widow of Steve Jobs, bought the most expensive home ever sold in the city for $70 million.

Sales of homes priced at $5 million or more are up 13% compared to last year. High-end markets in Naples, Florida, and Montana are also seeing strong demand. The artificial intelligence boom has boosted sales in the San Francisco Bay area.

The ultra-luxury market is largely disconnected from the broader housing market. It's driven by global financial markets and the stock market's continued success. The surge in inheritances from the $80 trillion Great Wealth Transfer is also helping sales. Millennial and Gen Z buyers are purchasing condos with family trusts, often sight unseen.

Wealthy buyers now want all their favorite lifestyle amenities in their homes. This includes gyms, spas, offices, entertainment spaces, and displays for their art and car collections. The price per square foot for luxury condos in South Florida is up 33% this year, to $3,451. Per-square-foot prices for single-family homes are up 11% to $2,485.