Sales of $US1 million homes are booming in the US market, even as overall sales have fallen in 2014.
It’s further evidence of how the nearly six-year economic recovery has favoured the wealthy.
Those with large stock portfolios, superb credit and cash to spare are snapping up estates, pied-a-terres and beachside cottages.
Some of this shopping spree comes courtesy of the Standard & Poor’s 500 climbing an additional 13 per cent in 2014, while mortgage rates have slid below four per cent and made it much easier to borrow.
The real estate brokerage Redfin recently reported that sales of properties costing more $US1 million climbed nine per cent year-over-year, based on data from the July to October quarters. Overall sales slipped 1.2 per cent.
These luxury homes are ascendant even though they represent less than three per cent of the market. More than 60 per cent of the US homes sold in November cost less than $US250,000 – and their sales have tumbled over the past 12 months, the National Association of Realtors said last week.
But what $US1 million gets you varies drastically across the country. In St Louis, it can secure a Beaux Arts mansion. In Atlanta, it’s enough for a charming craftsman. In Boston, it covers a two-bedroom condominium.