By Alexander Lee
In Aspen, Colo., an 11 bedroom compound overlooking downtown sold in June for $72.5 million, setting a price record for a single-family home in Pitkin County.
When the sprawling estate on Dragon Peak Drive in Las Vegas hit the market in May with a $28 million price tag, it became one of the most expensive single-family homes ever listed for sale in the city. The luxury residence, built by Blue Heron, spans 15,000 square feet across three stories and includes three swimming pools, 5,000 square feet of deck space, and panoramic views of the Las Vegas Strip and Red Rock Canyon.
Despite concerns about the pandemic's impact on the city's economy and housing market, the estate sold for $25 million just two weeks after listing, setting a record for the most expensive single-family home sale in southern Nevada. The sale reflects a broader trend in the luxury real estate market, with 759 homes priced above $1 million sold in Las Vegas by June 30th, nearly matching the 766 sold in all of 2020.
Data from the National Association of Realtors (NAR) further highlights this surge in high-end real estate transactions, with a 244.5% increase in the number of U.S. home sales priced above $1 million in May compared to the previous year. This growth outpaces the 47.9% increase in sales for homes priced between $250,000 and $500,000.
Aldo Martinez, a Las Vegas real estate broker and president of Las Vegas Realtors, describes the local market's growth as "100% escalation" over the past three years. This boom is evident across various U.S. markets, with record median sales prices hitting $570,000 in the D.C. area in May, according to Bright MLS.
Despite initial concerns that the luxury housing market would be severely impacted by the pandemic, sales of high-end homes have soared, fueled by buyers seeking more space and remote workers relocating to less expensive cities. This surge in sales is not limited to Las Vegas; high-end home purchases increased by 26% in the first quarter of 2021 compared to the same period in 2020, according to Redfin.
The luxury market has also seen record transactions in other parts of the country, with an 11-bedroom compound in Aspen selling for $72.5 million and two condos in Manhattan's 220 Central Park South selling for a combined $157.5 million. In Miami Beach, a six-bedroom apartment at the Continuum condo project sold for $30 million just two months after listing.
The booming luxury real estate market coincides with an overall surge in property prices, with the S&P CoreLogic Case-Shiller National Home Price Index reporting a 14.6% increase in home prices in April, marking the highest annual rate of price growth since the index began in 1987.
However, this skyrocketing growth at the top of the housing market is also raising concerns about an increasing housing gap in the country, as noted by Daryl Fairweather, Redfin¡¯s chief economist. She states, "So far, the economic recovery from the pandemic has disproportionately benefited Americans with bigger bank accounts... many lower-income Americans sit on the sidelines because they¡¯ve been priced out of the housing market due to surging prices.¡±
Reporter Alexander Lee alexanderlee_24@newsyn.co.kr