[From the archives: Manny Ramirez penthouse for sale at $8.5M boston.com]
Luxury homes have an international wanderlust. Why else would they be throwing themselves at foreign buyers? Luxury housing has not only outpaced all other segments in the Massachusetts market, but also the nation as a whole, according to two reports by real estate companies.
McCluskey of the Globe explores this phenomenon. In the first half of the year, luxury home sales in Massachusetts jumped nearly 15% from the same period in 2013, compared with a 4% increase nationwide. For sales of homes in all price points, there was a 3% decline in Massachusetts, according to a report by RE/MAX.
From April to June, homes sales of $2 million or more jumped 52%, compared to the same period in 2013.
The buyer profile is interesting. We're not necessarily talking about the folk who are taking out the ever-increasing number of jumbo loans. These people are paying with cash, more often than not.
While a healthy number of buyers are local, a growing force hail from abroad. As reported in the Globe, "...90% of my buyers are from China," said Susan Piracini, a broker at RE/MAX Leading Edge in Boston. "Five years ago it was more like 30-40%." This trend is real: Zillow is making moves to translate its app to Chinese as well, in light of the buying power in that market.
The average price of a downtown Boston condo soared to $851,199 last quarter, according to the estate tracking firm Link.
· Luxury home sales soar in state [Boston Globe]
· Zillow to Offer Real Estate Listings to Chinese Portal [Wall Street Journal]
· More Proof Boston Condo Prices Are Never, Ever Dropping [Curbed Boston]
· Rising prices, falling rates give boost to jumbo loans [Boston Globe]