Tags: high-end | real | estate | currency

'High-End Real Estate ... the New Global Currency'

By    |   Monday, 26 May 2014 08:48 PM

It's shaping up to be quite a year for the ultra-luxury home market.

Three homes in the United States have sold for $100 million or more this year, up from one last year, according to Jonathan Miller, CEO of Miller Samuel, a real estate consulting firm.

So why the huge sales?

"Wealthy investors are searching for a safe haven to invest their funds," Miller told Yahoo. "High-end real estate has become the new global currency."

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The sales don't have anything to do with trends in the U.S. housing market, he said. "It's a global phenomenon." And these homes won't be primary residences for their new owners, Miller noted. "It's just an asset class."

The $100 million sales include:

  • A $147 million property in East Hampton, N.Y. bought by Barry Rosenstein, a hedge fund manager at Jana Partners. That's the record price for a U.S. home.
  • A $120 million farm in Greenwich, Conn. bought anonymously.
  • A $100 million mansion in Los Angeles, thought to be purchased by a Russian buyer, Miller said.

As for the housing market as a whole, new-home sales surged 6.4 percent in April, the biggest increase in six months.

"The deep freeze is over, and I think we can expect new home sales to continue to rise," David Berson, chief economist at Nationwide Insurance, told Bloomberg. But he injected a note of caution. "It’s better; it’s still not strong."

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Three homes in the United States have sold for $100 million or more this year, up from one last year, according to Jonathan Miller, CEO of Miller
high-end, real, estate, currency
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2014-48-26
Monday, 26 May 2014 08:48 PM
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