In March we saw the sale of Fleur de Lys, the palatial Los Angeles home that sold for $102 million in cash. Last month we witnessed the sale that at the time was the most expensive U.S. single family home ever sold, a $120 million Greenwich, Connecticut estate. And now we see a new luxury property sell for an astounding $147 million, making it the new record holder for the most expensive piece of real estate ever sold in the United States.
The luxury property sits atop an 18-acre estate in East Hampton, close to actors like Jerry Seinfeld, and other well-known celebrities. The owner new owner of the megahome is Barry Rosenstein who amassed his fortune after founding his own hedge fund.
Why are so many of America’s Top Real Estate Properties trading hands this year? One proposed theory is the success of the stock market, and the increase in wealth among the nation’s top .01%. Others argue that the improved economy had led to an increase in consumer confidence, and the ultrarich simply have a greater desire to invest their money in luxury real estate. Additionally, we’ve seen foreign millionaires and billionaires seek out homes, like Fleur de Lys, as a method of diversifying their investment portfolio, and as a way of moving their assets away from potentially risky foreign economies.
For the affluent few, luxury homes are part of a diversified portfolio. According to DataQuick, an industry leader in real estate analytics and data, there has been a 33% spike in the sale of luxury homes during the months of January and February, bringing the total to the highest level since 1988 when the firm first started tracking the market. During the same time home sales of $250,000 or less fell by 12%.
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