Compass, Inc. has released its first-ever ultra-luxury market data report. The report, developed by the company’s luxury division, focuses on year-over-year residential real estate sales at $10 million and above within 30 key markets across the country in which Compass operates. The report is inclusive of aggregate market data from each market’s Multiple Listing Service or equivalent. The findings are based on industry-wide data, not just Compass transactions, the company reported.
A host of factors, including tech industry growth, consumer lifestyle changes, and historically low-interest rates, made 2021 one of the most unique years the industry has ever seen, particularly within the ultra-luxury sector, Compass stated.
“The pandemic only accelerated the need for abodes that double as sanctuaries,” said Lena Johnson, co-head of Compass’ luxury division. “Substantial year-over-year increases within this elevated price bracket, where it is not uncommon for people to own multiple homes in prime localities, demonstrates that beautiful homes are always in vogue.”
Transaction volume
Collectively, over 2,300 residential properties transacted at or above $10 million dollars in 2021, across the 30 markets profiled, a 111.6% increase over 2020. Los Angeles was the top market with a total of 628 transactions, accounting for 27.3% of all residential sales at or above $10 million dollars for 2021. Next in line was Manhattan with 326 transactions, followed by Palm Beach with 203 transactions. When looking at 2020 versus 2021 transaction volume changes for $10 million dollar and above sales, Austin experienced the greatest increase at 450%, followed by Suburban Long Island, excluding the Hamptons, at 400%, and Florida’s Coconut Grove, Coral Gables, and Key Biscayne area at 233.3%.
“The majority of the top one percent have seen a dramatic increase in overall wealth,” said Carl Gambino, a Compass agent in Los Angeles. “Many look at luxury real estate as a safe and appreciating asset that’s a hedge against inflation. Furthermore, many buyers are pursuing a very few prime properties which have created a strong seller’s market causing prices to explode.”
Sales volume
Over $40 billion dollars in residential real estate at or above $10 million dollars was transacted in 2021, across the 30 markets profiled, increasing 138% from 2020. Mirroring the top markets based on transaction volume, the markets which experienced the greatest sales volume in 2021 of properties at and above $10 million dollars were Greater Los Angeles with $10.6 billion dollars, Manhattan with $6.31 billion dollars, and Palm Beach with $3.75 billion dollars.
“We are projecting a very strong 2022 overall in Austin and Central Texas,” said Gary Dolch, a Compass agent in Austin. “We already see solid tailwinds for Q1 and Q2 with limited supply and strong demand we’re already receiving multiple offers. As good as it’s been here, we think we’re still in the early days with at least a five-year runway ahead of us, especially in executive estates, waterfront and ranch properties.”
Suburban Long Island witnessed the most significant increase in 2021 sales volume of properties at and above $10 million dollars, with a nearly 854% increase over 2020. The second biggest jump was in Austin with $189 million in sales volume for 2021, representing a 562.3% increase over 2020, followed by Telluride with $186 million in sales volume for 2021, a 319.4% increase over 2020.
Based on residential sales volume from the third quarter of 2021, Compass is number one in market share in 10 major metropolitan markets across the country, including Boston, Denver, Houston, Los Angeles, Nashville, New York City, Philadelphia, San Diego, San Francisco, and Washington D.C.
The Luxury Division at Compass was established in February of 2020 to elevate the level of agent support, enhance the aesthetic of marketing elements, and embolden the presence of exclusive properties within the marketplace. Exclusive offerings from the Luxury Division are tailored to aid Compass agents from the preparation to the promotion, and to the ultimate sale of a luxury property, all curated to meet the standard that luxury commands.
To view the complete report, visit the Compass Luxury Division website.
