Sales of Luxury Homes Soar as Low Rates, Stay-at-Home Shoppers Fuel Market

Sales of high-end homes climbed 41.5% year over year in the third quarter, according to online real estate broker Redfin (NASDAQ: RDFN), the largest year-over-year jump since at least 2013.

In a news release Monday, Redfin said that sales of luxury homes, defined as the top 5% of market values, as well as sales of second- and third-tier houses climbed year over year, while sales in the bottom two buckets fell by 4% each. The median sale price of a top-tier luxury home in the U.S. in the quarter was $862,700, up 6.5% year over year, while the median price of a house in the bottom tier was $90,000.

A for sale sign in front of a house.

Image source: Getty Images.

In a typical downturn, it is the luxury market that takes the biggest hit, but as Redfin chief economist Daryl Fairweather noted, “This isn’t a normal recession.” Changes in behavior driven by the coronavirus pandemic are

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Sales are underway for a new luxury home community in Avenir


Kenco Communities has begun selling pre-construction homes in its gated Coral Isles development.

Jodie Wagner
 
| Palm Beach Post

PALM BEACH GARDENS — Sales are underway for a new luxury home community within the massive Avenir development on western Northlake Boulevard.

Kenco Communities has begun selling pre-construction homes in its gated Coral Isles development, which is situated along the lakefront near Avenir’s future 16,000-square-foot private clubhouse.

The luxury home builder will offer six estate home designs that are among the largest at Avenir, ranging from 3,200 to over 5,300 square feet of living space.

More: Jack Nicklaus to design high-end golf course, practice facility at Avenir

More: Palm Beach Gardens in 2030: Rapidly growing city gears up for big-time development

Three designer furnished models that buyers will be able to tour are under construction, and are expected to be completed by the end of the year, Kenco said.

Those models

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Coppell man charged with scamming $17 million in PPP money to buy luxury cars and homes

Federal investigators say a Coppell man fraudulently applied for dozens of federal stimulus PPP grants and received more than $17 million that he spent buying real estate and luxury cars such as a Bentley and a Corvette.



Government prosecutors have now charged dozens of people with fraudulently receiving grants from the Payroll Protection Program.


© Brian Elledge/Staff Photographer/The Dallas Morning News/TNS
Government prosecutors have now charged dozens of people with fraudulently receiving grants from the Payroll Protection Program.

A coalition of federal agencies charged Dinesh Sah, 55, of Coppell, with applying for $24.8 million in PPP loans for 15 businesses that claimed to have more than 500 employees, but in fact, many of the businesses were registered after the CARES Act was passed and did not have any employees, according to court documents detailing the indictment.

“Mr. Sah exploited this terrible pandemic for personal gain – and he should be held accountable to the American people for that behavior,” said U.S. Attorney Erin Nealy Cox in

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South Florida’s luxury market is rebounding. The majority of buyers are paying cash

Lockdown paralysis ended with a roar as luxury home buyers fled taxes elsewhere, creating a third-quarter surge in South Florida.

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After a whopping 55.6% drop in year-over-year luxury sales in the second quarter, third-quarter sales of existing homes skyrocketed by 65.2% for single-family houses and by 18.2% for condos when compared with the same period in 2020, according to the latest Keyes Luxury South Florida Market report. The firm based its findings on data from the Multiple Listing Service for residential sales priced over $1 million across Palm Beach, Broward, Miami-Dade and Martin counties.

“The opening after the shutdown created a surge of pent-up demand that exploded the luxury market. What happened is that the shutdown accelerated the decision-making of everyone that was thinking that they wanted a bigger home or a Florida home. When they were given the chance, they jumped on it,” said Mike Pappas, the

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South Florida’s luxury market is rebounding. Some pay in cash

Lockdown paralysis ended with a roar as luxury home buyers fled taxes elsewhere, creating a third-quarter surge in South Florida.

After a whopping 55.6% drop in year-over-year luxury sales in the second quarter, third-quarter sales of existing homes skyrocketed by 65.2% for single-family houses and by 18.2% for condos when compared with the same period in 2020, according to the latest Keyes Luxury South Florida Market report. The firm based its findings on data from the Multiple Listing Service for residential sales priced over $1 million across Palm Beach, Broward, Miami-Dade and Martin counties.

“The opening after the shutdown created a surge of pent-up demand that exploded the luxury market. What happened is that the shutdown accelerated the decision-making of everyone that was thinking that they wanted a bigger home or a Florida home. When they were given the chance, they jumped on it,” said Mike Pappas, the CEO and

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London Luxury Homes Suffer Worst Rental Slump in Over a Decade

(Bloomberg) — It’s a pretty good time to be renting a posh London pad.

The price to lease a home in the capital’s wealthiest areas slumped by an annual 8.1% in September, the steepest in more than 10 years, according to broker Knight Frank. Landlords are flooding the market with short-term rentals as tourists stay away from the capital, and more owners are opting to rent out properties amid the pandemic uncertainty.

The pain for owners in London’s priciest districts will likely continue into the current quarter, with Knight Frank forecasting a 9% decline for the whole year. Step outside the capital, though, and it’s a different story: nationwide rents are going in the other direction as renters search for homes with more space and larger gardens.



chart, histogram: London's Falling


© Bloomberg
London’s Falling

Rents also slipped as international students snubbed high-end properties in central London, the report said. Less interest from corporate

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Pandemic boosts sales of luxury homes in resort communities

Wealthy Americans are snapping up multimillion-dollar homes in exclusive resort communities as the coronavirus pandemic continues to fuel a work-from-home lifestyle that no longer tethers workers to the office five days a week. 

Sales of expensive homes in places like Aspen, Colorado; the Hamptons; and Palm Beach, Florida have been booming since May, when it became clear the pandemic would upend Americans’ lifestyles indefinitely, according to real estate agents and appraisers across the country. 

“We are seeing greater sales gains in more expensive properties in areas people consider to be retirement destinations and resorts,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR), a trade association representing real estate professionals. “I think this new economy and working from home can also mean working from a vacation home — that is, a larger size home with more elbow room that is in more of a vacation destination.”

For

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Social Distance In Style In This Luxury Former Cold War Bunker In London

Do unusual homes require a different kind of sales marketing? The owner of this converted Cold War bunker in northwest London clearly thinks so.

The sales particulars for this 10,000-square-foot concrete house describes it as a “pandemic refuge”, and says that it anticipates buyers from the following categories: “a secretive businessman, celebrity avoiding paparazzi, young or old playboy, trophy hoarder, car collector, original thinker, eccentric intellectual.”

The owner, rather than the selling agent, came up with the quirky description, according to a spokesperson for FW Gapp, the estate agency selling the grade II listed property, which is on sale for $12.9 million and lies in the suburb of Mill Hill.

The Cold War relic, once part of

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Top Agents Branden, Rayni Williams Launch Luxury Real Estate Firm

There’s a major shakeup coming to the high-end Los Angeles real estate market. Dirt has learned that Branden and Rayni Williams, the married co-founders of the Williams and Williams Estates Group — one of L.A.’s top-producing realtor teams — will soon depart their longtime Hilton & Hyland brokerage home for a new firm they are founding, according to industry sources.

Public records show an entity called the Beverly Hills Estates Inc. filed as a California corporation in late July, with Branden Williams named as CEO and Director. Rayni Romito Williams is listed as CFO. Internet data also shows the Williams and Williams team has registered an accompanying online domain, thebeverlyhillsestates.com. The listed broker of record is Greg LaPlant.

The Beverly Hills Estates lists an address in Pasadena on corporation records. Sources also told Dirt that the Williams and Williams team has already secured office space in prime West Hollywood, on

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Luxury Real-Estate Market Surges In The Hamptons

Nobody knew what was in store at the onset of the Covid-19 pandemic in March, but when schools and offices shut down and the threat of the virus in New York City was greater than ever, many wealthy families beelined to their Hamptons homes. 

Always a sought-after destination between Memorial Day Weekend and Labor Day Weekend, the Hamptons is relatively quiet in March and April and is nearly vacant in the winter months. With Covid-19 still a looming threat, many city dwellers are taking advantage of the seclusion in the Hamptons and renting in the off-season this winter and even up to a year. 

Since March, the market has been fierce, with many bidding wars and sales over asking prices due to low inventory and high demand.

“Once the stay-at-home order

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