2024 U.S. Ultra-Luxury Residential Real Estate Market Outpaces 2023 Sales for the First Half of the Year

• Greater Los Angeles led all markets in ultra-luxury transactions with 135 sales, achieving a total sales volume of $2.67 billion, despite a mansion tax that made buying a high-priced homes more expensive. Manhattan, Palm Beach County, and Miami-Dade followed, as the report's top 10 markets accounted for over 75% of all sales.

• Sales increased in 20 markets compared to the same period last year, as ultra-luxury buyers invested in high-priced properties to hedge against inflation and relied on all-cash financing to circumvent elevated mortgage rates.

• For the first time, Delaware entered the ultra-luxury sales category.

• Emerging markets and second-home destinations fueled the greatest growth, with Greater Nashville experiencing a 600% increase and Central Florida seeing a 500% uptick, as tax-favorable policies and unique abodes inspired high-net-worth buyers.

• Orange County, CA, Telluride, CO, and Greater Palm Springs, CA, led the markets with the highest growth among those with ten or more transactions.

New York, New York, August 6, 2024 - Compass, the largest residential real estate brokerage in the United States by sales volume, released its second-annual mid-year Ultra-Luxury Report, providing an analysis of residential real estate sales at $10 million and above across 81 U.S. markets during the first six months of 2024 (H1 2024.)

Nationally, the number of ultra-luxury homes sold increased by 3.9% during H1 2024 compared to last year. With 838 transactions totaling $14.6 billion in sales volume, the data reveals that high-net-worth buyers still invest in premium properties despite the uncertainties of a presidential election year, elevated mortgage rates, and inventory challenges in some markets, among other things. While coastal enclaves had the most sales, new markets emerged or reemerged as ultra-luxury hotspots.

"Premium properties remain timeless, and the findings of this report demonstrate a strong commitment from both buyers and sellers to complete transactions," said Felipe Hernandez Smith, Head of Compass Luxury. "There are exceptional homes nationwide catering to every lifestyle, and it's encouraging to see that premium real estate is always in vogue."

Top 10 Real Estate Markets With The Highest Number of $10M+ Sales in H1 2024

Wealthy buyers bet that high-end real estate will safeguard against persistent inflation while enhancing their preferred lifestyles. Nowhere is this more evident than in Greater Los Angeles, where, despite the mansion tax implemented on April 1, 2023, which increased the cost of owning ultra-luxury properties, 134 homes priced at $10 million or more were sold between January 1 and June 30, 2024, solidifying it as the leading ultra-luxury housing market in the U.S.

"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," said Ginger Glass, Compass agent in Los Angeles. "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."

Ultra-Luxury Sales Rose in 20 Markets Year-over-Year

Four of the 20 markets with increases in year-over-year sales experienced triple-digit growth. Greater Nashville saw a 600% surge in ultra-luxury transactions, followed by Central Jersey with a 500% climb and Central Florida with 400% growth. These markets offer favorable tax environments compared to similar markets elsewhere and new and distinctive properties, appealing to discerning ultra-wealthy buyers.

"Tennessee's tax-free status attracts relocation, but Nashville's big appeal lies in its temperate seasons, world-class food, music, and welcoming atmosphere," said Michelle Maldonado, Compass agent in Nashville. "Buyers seek a balance of privacy and convenience, desiring acreage near amenities."

Central New Jersey, which includes highly-coveted beach communities, is undergoing a once-in-a-generation evolution as new homes replace traditional abodes and buyer demand for waterfront property accelerates.

"The luxury real estate market in Monmouth and Ocean County is undergoing a significant transformation, marked by the trend of replacing traditional beach bungalows with upscale, high-end homes in locations like Belmar, Bradley Beach, and Manasquan," said Robert Kilbride, Compass agent in Central New Jersey.

"Concurrently, there is rising demand for luxurious oceanfront condo developments in Long Branch and Asbury Park. 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."

Growth Markets with Ten or More $10M+ Sales in the First Half of 2024

In an analysis of the top real estate markets in the report with ten or more $10M+ sales in H1 2024, Orange County, CA, leads with 51 transactions, reflecting a 96.1% increase from H1 2023. This surge underscores the region's enduring appeal, characterized by its coastal charm and luxury lifestyle offerings.

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."

Telluride, CO, followed with 11 transactions, representing an 83.33% increase, driven by its renowned status as a premier mountain retreat and exclusive second-home destination. Greater Palm Springs, CA, also showed notable year-over-year growth, with 66.67% more sales, highlighting its allure as a luxury desert destination. These markets are establishing themselves as ultra-luxury benchmarks, attracting affluent buyers seeking opulent living spaces and sound investments amid economic fluctuations.

"Prices per square foot on both acquisition and construction of Telluride's single-family homes and condominium offerings continue to move upward," said Bill Fandel, a Compass agent in Telluride. "The launch of the $1 billion Four Seasons Telluride Private Residences project has spurred broader global interest in the region and real estate market, contributing to this strong pricing dynamic."

"With an increased supply of luxury listings, our sales would undoubtedly climb even higher," commented Valery Neuman, Compass Palm Springs agent. "Looking ahead, the second half of the year holds great promise as more people discover the allure of Palm Springs."

The ultra-luxury real estate market has shown remarkable resilience, and a strong second half of the year ahead could help it surpass 2023 in overall performance. What is certain is that high-net-worth individuals recognize the value of investing in premium properties.

To delve deeper into the insights and findings of Compass' 2024 Mid-Year Ultra-Luxury Report, please visit the Compass Luxury website:https://www.luxuryatcompass.com/ultra-luxury.