The United States luxury real estate market has experienced a surge in 2024 and a Newsweek map shows where seven properties have sold for over $100 million.
The bulk of these high-profile deals took place in billionaire-favored locations such as New York, Malibu, California, and Palm Beach, Florida. However, one significant transaction took place in Aspen, Colorado, where casino mogul Steve Wynn made headlines with his $108 million purchase.
It the second-highest year on record for such big sales. Making waves in the luxury market this year are three deals nearing $90 million, including Jeff Bezos's acquisition of his third mansion on Indian Creek Island in Miami, Ellen DeGeneres's sale of a sprawling Montecito estate for $96 million, and Laurene Powell Jobs's $94 million purchase of a Malibu teardown.
Why It Matters
The U.S. luxury housing market is thriving amid broader market challenges, with luxury home sales increasing by 5.2 percent in the first half of 2024 and median prices rising by 14.2 percent.
Affluent buyers' ability to pay in cash reduces the impact of elevated mortgage rates, contributing to this resilience. Additionally, the stock market's strong performance has bolstered the wealth of potential buyers, further supporting the luxury segment.
What To Know
Drawing on data from Mansion Global, Newsweek has created the map showing the most expensive real estate deals in 2024 in the U.S.
James Jannard, the founder of Oakley, has set a new real estate milestone with the sale of his 10-acre estate in Malibu for $210 million, making it the only U.S. home sale this year to exceed $200 million. This deal stands as one of the rare transactions at such a high price.
Jannard originally purchased the property, located on the Encino Bluffs, for $75 million in 2013. The estate, which includes an eight-bedroom residence spread across three separate parcels, has now shattered Malibu's previous price record of $200 million, held by Jay-Z and Beyoncé since 2022.
However, the sale has not yet appeared in public property records, and Newsweek was unable to independently confirm the transaction.
A private two-acre island off Palm Beach has been sold for $152 million, setting a record for the town, which boasts the highest concentration of billionaires globally, according to Mansion Global. Todd Glaser, a spec developer, sold the island, which he and his partners acquired for $85 million in 2021. The property, called Tarpon Island, offers more than 28,000 square feet of living space and features the original 1930s home, now repurposed as a guest pavilion.
Investor Daren Metropoulos, who bought the former Playboy Mansion in 2016, recently spent $148 million on a historic Palm Beach estate designed by renowned architect Addison Mizner. The Mediterranean Revival-style residence, constructed in 1919, covers nearly 23,000 square feet and boasts 225 feet of oceanfront. The 3.2-acre property, known as Casa Amado, was sold by the Canadian Pencer family, who had renovated it after acquiring it in the early 2000s.
What People Are Saying
"For the year ahead, we expect continued slowing in house prices," Matthew Walsh, an economist at Moody's Analytics, previously told Newsweek. "To put some numbers to it, by the end of 2025, we expect somewhere between 1 to 1.5 percent-year over-year price appreciation," he said.
What's Next
Outlooks from expert bodies indicate there is general optimism for the U.S. economy in the coming year. Goldman Sachs has said there is a low 15 percent chance of a recession occurring in 2025 and that the economy will grow at a 2.5 percent annual rate.
Homes are anticipated to stay on the market longer due to increased inventory, providing buyers with more options.
The market is projected to stabilize, with fewer homes selling above the asking price compared to previous years, potentially resulting in a decrease in house prices.
English (US) ·