Luxury Market Keeps Moving Strong
Daily Real Estate News | March 10, 2008
People with money who can afford to pay big prices for houses continue to do so even though the housing market may be slow for buyers with lesser resources.
Ron Baron, founder of the Baron Funds investment company, last year paid a record $103 million for an ocean-front property in East Hampton, N.Y. He is currently building himself a mansion on the site.
Wall Street financier Philip Falcone recently paid $39 million for a 27-room Manhattan townhouse that was once owned by Penthouse magazine publisher Bob Guccione.
On the West Coast, the 29-bedroom, 40-bath former home of William Randolph Hearst and actress Marion Davies is on the market in Beverly Hills for $165 million, which might be the highest asking price for a home in U.S. history.
“For the ultraluxury market to take a hit, there would have to be serious financial woes that went a lot deeper than what we’re seeing now,” says Rick Goodwin, publisher of Unique Homes, a magazine and Web site about luxury properties. “If they’ve got the money, it’s not going to be a hardship to fork over cash for a $10 million house.”
Source: BusinessWeek.com, Prashant Gopal (03/07/08)