Ultra-luxury sales, or residential sales valued at or above $10 million, totaled $14.6 billion across 838 transactions, an increase of 3.9 percent during the first half of the year.
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Ultra-luxury sales in coastal enclaves and hotspots bolstered sales levels beyond those of last year, according to a report released by Compass on Wednesday.
Ultra-luxury sales, or residential sales valued at or above $10 million, totaled $14.6 billion across 838 transactions, an increase of 3.9 percent during the first half of the year. Ultra-luxury transactions during the same period in 2023 totaled $13.9 billion across 806 transactions, according to Compass’ 2023 Mid-Year Ultra-Luxury report.
Sales increased in 20 markets as ultra-luxury buyers aimed to combat inflation by investing in high-priced properties, despite uncertainty in the real estate market at large and the upcoming presidential election.
“Premium properties remain timeless, and the findings of this report demonstrate a strong commitment from both buyers and sellers to complete transactions,” Felipe Hernandez Smith, head of Compass Luxury, said. “There are exceptional homes nationwide catering to every lifestyle, and it’s encouraging to see that premium real estate is always in vogue.”
Sales have surpassed those in 2023, while the transaction volume on ultra-luxury properties was down 40 percent compared to 2022.
Compass’ 2024 Mid-Year Ultra-Luxury Report identified the top 10 real estate markets with the highest ultra-luxury sales transactions for the first half of the year: Greater Los Angeles; Manhattan, New York; Palm Beach County, Florida; Miami-Dade, Florida; Orange County, California; Southwest Florida, Florida; The Hamptons, New York; Silicon Valley and Peninsula, California; Big Island, Kauai, Oahu, and Maui, Hawaii; and Aspen, Colorado.
Greater Los Angeles led as the top ultra-luxury housing market with 135 sales and a sales volume of $2.67 billion, despite the impact of the ULA or “mansion tax” implemented in the city beginning April 1, 2023.
The ULA tax applied a 4 percent tax to all properties priced above $5 million and a 5.5 percent tax to properties priced above $10 million. The tax brought in only $3.6 million of an anticipated $56 million in tax revenue.
Although places like Beverly Hills and Malibu, California, saw more sales than Greater Los Angeles within a few months of the tax implementation, Greater L.A. quickly rebounded, making many of its top sales less than a year after that.
“Los Angeles’ luxury home market remains resilient with the influx of international buyers looking for more stable investments or second homes they forecast will be needed in a rapidly changing global and political environment,” Ginger Glass, Compass agent in Los Angeles, said. “LA remains a clear destination constantly evolving with new trends, new developments and space in a vibrant environment from the desert to the ocean offering sustainable homes with an emphasis on wellness and security.”
The top 10 markets totaled over 75 percent of all sales.
Compared to the previous year, the top 10 markets featured the same locations, with slight variations in placement. Greater Los Angeles and Manhattan remained at the top of the list, according to Compass.
Greater Nashville, Central New Jersey and Central Florida saw the greatest year-over-year sales increases in ultra-luxury transaction volume of 400 percent or more. Nashville saw the largest surge at 600 percent, followed by New Jersey at 500 percent and Florida at 400 percent.
These markets appeal to ultra-wealthy buyers due to their favorable tax environments.
“Tennessee’s tax-free status attracts relocation, but Nashville’s big appeal lies in its temperate seasons, world-class food, music, and welcoming atmosphere,” Michelle Maldonado, Compass agent in Nashville, said. “Buyers seek a balance of privacy and convenience, desiring acreage near amenities.”
Central New Jersey is undergoing an evolution, as new homes replace traditional styles and markets see an increased demand for waterfront property.
“There is rising demand for luxurious oceanfront condo developments in Long Branch and Asbury Park,” Robert Kilbride, Compass agent in Central New Jersey, said. “This dual trend is reshaping the local real estate landscape, emphasizing upscale amenities and the seamless integration of outdoor and indoor spaces. The demand for prime waterfront properties in these coastal communities remains robust, with buyers seeking exclusive homes that combine elegance with a leisurely coastal lifestyle.”
Compass’ report lists Orange County, California; Telluride, Colorado; and Greater Palm Springs, California, among the markets with 10 or more ultra-luxury sales during the first half of the year.
Orange County leads with 51 transactions, a 96.1 percent increase from the same time last year.
Marcy Weinstein, a Compass agent based in Orange County, shared, “I think we will continue to see gated neighborhoods like Newport Coast still being highly attractive, and we will continue to find buyers from Los Angeles who are choosing to relocate here to Orange County,” Marcy Weinstein, a Compass agent in Orange County, said.
Telluride followed with 11 transactions, an 83.3 percent increase, and Greater Palm Springs trailed behind with 66.7 percent more sales.
“With an increased supply of luxury listings, our sales would undoubtedly climb even higher,” Valery Neuman, Compass Palm Springs agent, said. “Looking ahead, the second half of the year holds great promise as more people discover the allure of Palm Springs.”
If the resilience seen in the ultra-luxury real estate market carries over to the second half of the year, this year has the potential to surpass 2023, which concluded with a 1,560 sales transactions totaling $26.8 billion sales volume. At $14.6 billion, 2024 is already more than halfway there.
Email Richelle Hammiel
