Behind an improved economy and increasing home prices many cities are seeing a boom in their luxury real estate market, which came back with a vengeance in 2013.
Luxury homes showed sales levels not seen in over 6 years when 42,506 homes were purchased at a price of $1 million or more. As of year-end 2013 approximated 39,175 homes were purchased costing more than $1 million. This is a 45% increase from 2012 when only 26,993 homes were bought for the same price.
The Los Angeles area dominated the luxury real estate market this past year, boasting the most expensive sale of 2013, which was $74.5 million estate in Malibu. The area’s Santa Monica community saw all of its home sales at $1 million or more.
As usual Southern California was the most desired spot for buyers seeking to purchase luxury real estate. In fact Southern California saw its best year yet with a record 10,602 home sales of $1 million or more. Manhattan Beach, located in L.A.’s South Bay, saw the most luxury real estate sales in the state with 439. Hillsborough was able to post an impressive 436 sales, just 3 sales fewer than Manhattan Beach.
Local realtors familiar with the South Bay real estate market say that standard lots in the area start at $2 million, and when buyers purchase the average 2000 square foot home they usually tear it down and rebuild.