Second Quarter Luxury Real Estate Numbers Strong

Luxury home prices climbed and closings on some of the world’s most beautiful properties picked up in the second quarter, bringing good news to those offering premium real estate  in the U.S. and abroad.

“The luxury real estate market appears to be vibrant in many places domestically and internationally,” said Robbie Briggs, president and CEO of Briggs Freeman Sotheby’s International Realty in Dallas. “In my experience, buyers are coming in with strong offers of cash or heavy down payments. For the first time in a long time, I see homeowners with renewed  confidence in the second quarter, thanks to lower interest rates.”

The improvements in the luxury home market kept pace with reported gains in the domestic real estate  market overall in recent months. Sales of existing homes of more than $1 million improved by nearly 17 percent  in some regions in April over the same period in 2011, according to the National Association of Realtors. And new home sales at the high end of the market remained  strong through May, according to statistics from the U.S. Department of Housing and Urban Development.

•         In Manhattan, people are buying co-ops and condos at top prices, and a penthouse on 57th Street  just sold for more than $90 million- a record sale for New York City, according to Royce Pinkwater.

•         Attracting buyers from around  the U.S., Brazil and other countries, the Miami market has seen price per square  foot rise 18 percent over the past year, and sales were up 66 percent  in the first quarter, said Mayi de la Vega.

•         Michael Rankin reported the demand for luxury homes has grown so much in Washington, D.C., that many are being offered as “private exclusives,” and kept off of the multiple listing service.

•         Even with the uncertainty in the stock market and a teetering global economy making buyers nervous, Gloria Smith in San Francisco said homes in the $5 million range continue to sell quickly.

And that’s just the domestic luxury real estate  report.

“In talking to many associates in Europe, I’m hearing about record-setting sales prices in Sweden and increased  interest from Americans and Russians looking at villas in Italy,” Briggs said. “On top of that, the European debt crisis has driven the world’s super-rich to seek stable investments in high-end properties in London.”

“It all tells me that global prospects for luxury home sales are gradually strengthening.”

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