Record US residential sale breaks $100 million mark
The cloud over the current residential real estate market has a silver lining. The upper-tier market continues to boom, as evidenced by the record-breaking sale of a residential property in East Hampton (NY) for $103 million.
The new sale was supposed to be hush-hush. But, the news was quickly out that Schlumberger Oil fortune heiress Adelaide de Menil and her husband Ted Carpenter had sold the ocean front property to Ron Baron, founder of Baron Funds Investment Company. The transaction breaks the previous record for the most expensive home sold in the US which was set in 2004, by the sale of Revlon Chairman Ron Perelmanâ€™s Palm Beach estate.
Although the sale in the Hamptonâ€™s is a new US record, the world record residential sale is still held by Forbes Billionaire Lakshmi Mittalâ€™s purchase of a London estate for $128 million.
â€œBy comparison, the most expensive home sold last year at Lake of the Ozarks was $4,200,000.00 â€ according to Helen Riggins, of RE/MAX at the Lake.
â€œAlthough the US housing market slipped overall in 2006, the luxury market has continued to boom, as a result of rising wealth at the top of the demographic pyramid,â€ said Laurie Moore-Moore, Founder of the Dallas-based Institute for Luxury Home Marketing. â€œSales of homes priced at $5 million and above jumped 18% last year and rose a staggering 31% in the first quarter of 2007, according to new research by DataQuick.â€
â€œAt least five US sellers are so optimistic that the luxury home market will stay strong that theyâ€™ve priced their homes at more than $100 million,â€ said Moore-Moore. â€œThe chances are good that Baron wonâ€™t be king of the residential hill for long, we may see a new record in the next 18 months or so.â€
Leading the pack as the priciest estate is â€œThe Pinnacle,â€ under construction at the members-only Yellowstone Club in Montana, and offered for sale by the clubâ€™s developer, Tim Blixseth, for $155 million. The four other highest priced homes include Saudi Prince Bandarâ€™s estate in Aspen (CO), priced at $135 million; â€œFleur De Lysâ€, a Los Angeles (CA) property priced at $125 million; Donald Trumpâ€™s $125 million Palm Beach (FL) re-do; and the $100 million estate known as â€œTranquility,â€ at Lake Tahoe (NV). The priciest home on the market locally is $3,995,000.00 said Riggins.
â€œOne interesting fact about the record-setting New York sale,â€ added Moore-Moore, â€œis that Baron didnâ€™t want the existing homes on the property. So, they were removed for his convenience, leaving him with a fabulous site for building his custom home.â€ The houses were donated to the nearby community for use as city buildings.
About The Institute for Luxury Home Marketing
The Institute for Luxury Home Marketing works with residential real estate professionals around the world, providing education and training to assist them in delivering exceptional service to buyers and sellers of luxury homes and estates. Institute members have completed specific training and have access to specialized tools to build expertise in marketing upper-tier properties. Members who meet strict performance standards may earn the prestigious Certified Luxury Home Marketing Specialist designation. Information about the CLHMS designation and an international list of members can be found at www.CLHMS.org, which is also accessible via The Wall Street Journalâ€™s RealEstateJournal.com website.