Low interest rates and a hot stock market fueled a drive in the luxury housing market this year. Sales priced at or over $50 million rose 35% year over year, according to a report from appraiser Miller Samuel, as reported by Bloomberg. That marks a record high, topping 2020 levels, the previous record.
“This surge in this tier is unprecedented,” Jonathan Miller, Miller Samuel president and CEO, told Bloomberg. “We’ve never seen this kind of growth. … Not enough words have been written on the impact of low rates, even on the uber-wealthy. And one big takeaway in housing is: the lower the rates, the higher the prices. And this is that phenomenon on steroids.”
In 2021, at least 40 residential properties sold for more than $50 million in the U.S. Miller Samuel reported eight properties that were sold for at least $100 million. New York and Florida led in ultra-luxury home sales this year.
The priciest home sale of the year occurred in Montana. Rupert Murdoch spent $200 million on a 340,000-acre ranch, which also marked the largest sale in the state’s history.