$40 million, the new price of luxury?

A report in today’s Wall Street Journal says new luxury home listing and sales at the $40 million mark are popping up across the country including right here in Santa Barbara. The article titled “The New Price of Luxury: $40 Million,” explains how this once unthinkable sum has become a standard asking price for high-end real estate.
“We’ve had this creation of a new market category unlike anything that’s ever been seen before,” said Jonathan Miller, a Manhattan-based appraiser. “Five or 10 years ago, a $40 million sale or listing was an outlier. And today it’s almost commonplace.”
According to the real estate website Trulia, more than 300 homes were listed over the last year at $35 million to $49 million, which is an increase of 24% from the prior year.
What is fueling these super-luxury home sales? One factor is the creation of global wealth. Overseas and domestic buyers today are looking to invest in hard assets. That demand is resulting in high prices of land, especially in prime locations. In return for the high price, these buyers are asking that the home comes fully furnished, because they often have other homes and don’t want to spend time picking out furniture. I heard of one Hollywood Hills house that was not just fully furnished, but the sellers also stocked it with wine in the wine cellar and even toothbrushes in the bathrooms. Basically, these buyers are asking for sellers to go the extra mile.
If you are ready to list your home at $40 million or are looking for a luxury property in any price range in Santa Barbara, Hope Ranch, Montecito or the other surrounding upscale communities, please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. With more than 25 years in the industry, I have the experience and knowledge to find you the perfect home!