ML-Implode News - The Vanishing Market For $100 Million Homes

``The quiet disappearance of many of these mega-priced listings from the market underscoresÂ what most brokers have known all along:Â there is no $100 million housing market. Instead,Â what felt like a steady beat of $100-million-plus trades--a $117.5 million deal in Woodside, Calif., in late 2013, followed by a $120 million sale in Greenwich, Conn., aÂ $147 million trade East Hampton, N.Y., thenÂ a $100.5 million Manhattan apartment sale at the end of 2014--were in fact a series of closely spacedÂ anomalies. "All those transactions were one-offs," says appraiser Jonathan Miller of Miller Samuel.Â "It's not that the market has physically changed, it's that there's more visibility. The word is out."
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Now there are plenty of signs that the luxury market has cooled off--and not just at the $100 million price point. In Manhattan, where so many luxury towers are in the pipeline that there is now a glut of supply, a total of 190 apartments priced at $10 million or higher sold in 2015, down from 214 in 2015, according to CityRealty, which tracks co-op and condominium sales in Manhattan. The number of contracts signed at $10 million and above dropped 16% in 2015, according to Oshan Realty, who tracks sales at $4 million and higher. It took two months longer to sell a luxury property in 2015 compared to 2014.
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With the luxury real estate market crashing back to Earth, at least some owners seem willing to price-chop their listings. Just last week Celine Dion cut the price of her Jupiter Island home in South Florida by $30 million to $45.5 million; this week the Wall Street Journal reported that Julia Roberts lowered the price tag on her Kauai retreat for the second time, from $26 million to $21.95 million. They are among several celeb-pedigreed properties, Variety reports, to undergo price chops.
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Some developers of new projects are also getting more realistic with pricing. HFZ Capital Group's paid one of New York City's highest prices ever for a piece of land along the High Line, but the new Bjarke Ingels-designed tower to be built on the site reportedly won't feature $10 million apartments. HFZ plans to build smaller luxury apartments at a lower price point, according to Bloomberg. There are signs of pricing easing in luxury resales as well.

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The Vanishing Market For $100 Million Homes