The world’s wealthiest people are moving cash into real estate in bigger numbers as the economy improves and the housing market is once again viewed as a safe haven for cash.
A strong stock market has also helped drive the affluent back into real estate.
Home purchases of $2 million or more jumped 33 percent in January and February from a year earlier to the highest level for the two-month period in data going back to 1988, according to an analysis by DataQuick.
“Last year the stock market broke all kinds of records and when that happens, you’re going to see art and resort real estate break all kinds of records,” Judi Desiderio, chief executive officer of Town & Country Real Estate in East Hampton, told Bloomberg.
Last week, Barry Rosenstein, founder of hedge fund Jana Partners LLC, purchased an 18-acre beachfront property in East Hampton, New York, for $147 million, according to the New York Post.
That surpased the previous record for a new U.S. single-family home of $120 million set last month with the sale of a Greenwich, Connecticut, waterfront estate on 51 acres.
In Los Angeles, a 50,000-square-foot home sold in February for $102 million in cash after a bidding war.
Last month, a Beverly Hills property once owned by William Randolph Hearst went on the market for $135 million, making it the highest-priced residence for sale in California, according to listing broker Hilton & Hyland.
“The next benchmark will be $200 million,” said Kurt Rappaport, who represented owner Suzanne Saperstein in the $102 million sale of the Holmby Hills home in Los Angeles, “This is a very small segment of the market that very few can afford but they rarely change hands, and when they do, it’s an opportunity.”
- Tired of Big Mortgages? This Couple Built a Nice Home for $22,000
- A Shipping Container Can Go for $2,000. Use Them to Build Amazing Homes.