I hear around town and read articles on the web, that like to portray the luxury market as flying high. So I decided to dig into the numbers to get to the truth about or high end housing market. Here’s some of what I found:
- In 2011, there were 25 homes sold priced above $3 million
- There are presently 97 homes for sale priced $3 million and above
- The highest priced home sold in 2011 was the $10 million home of mega star Russell Simmons (Saddle River). And the next highest priced home sold for $6.2 million. After that it was a steep decline that rivaled any Vail double black diamond ski run.
The ultra luxury home market for 2012 won’t be any better, especially when the market for homes in this price range are selling at a record pace in New York City, and even a bit out in the Hampton’s. This is where wealthy people are putting their money. Not in the suburbs.
And the demographics are working against ultra luxury home sales in our area. There just aren’t enough wealthy young buyers who want massive homes, with massive taxes on the other side of the Hudson River.
However, there is one interesting thing happening in Tenafly, that’s worth a mention:
It’s weird that we’re once again seeing homes being sold, then torn down in Tenafly. There are a few builders who are taking the risk and building large (6,000-8,000sf) and expensive spec homes, and there are buyers who are building their own large and very custom homes here as well. This in turn hurts sales in the ultra luxury existing home market, because it takes buyers away from the existing homes.
Buyers seemingly want new over something older and more dated, even if they can buy an existing home for a steep discount. Gotta love American capitalism.
Let us know what you think