• Low tax areas and second home markets, including Houston, Phoenix, Martha’s Vineyard, and Wine Country, were among the 13 markets with more sales at $10M and above during the first half of 2023 than at the same time in 2022. Houston and Dallas saw a 200 percent uptick in transaction volume year-over-year

• New Hampshire and Fairfield County, CT (excluding Greenwich) had no ultra-luxury sales January-June of last year but had five combined sales in this category during the first half of 2023

• Greater Los Angeles led all markets in ultra-luxury transactions (160) and sales volume ($3.2B), followed by Manhattan, Miami-Dade, and Palm Beach County

NEW YORK, August 2, 2023 - Compass, the leading technology-enabled residential real estate brokerage, unveiled today its inaugural mid-year Ultra-Luxury Report, providing an analysis of residential transactions and sales volumes at $10 million and above across 76 U.S. markets during the first six months of 2023 [^1]. 

The report reveals compelling trends in the luxury real estate sector, showcasing that unique properties in vacation/second-home and low-tax markets are selling at higher rates than last year despite limited inventory and higher interest rates. At the same time, historically wealthy coastal enclaves like Greater Los Angeles and Manhattan continue to appeal to affluent buyers. Overall, $13.85 billion in ultra-luxury real estate traded across 806 transactions during the first two quarters of 2023, underscoring the resilience of the sector and a testament that ultra-high-net-worth buyers will transact notwithstanding challenging external factor

Ultra-Luxury Market Resilience 

An impressive 13 markets had more transactions at $10 million and above during the first half of 2023 compared to the corresponding period last year, mostly in low-tax areas and historically second-home markets. 

New Hampshire, for instance, emerged as an ultra-luxury destination, where three deals occurred consecutively in the first three months of 2023, following a notable absence of sales at $10 million during January-June dating back to 1996. Fairfield County in Connecticut was another area that went from zero transactions from January to June last year to multiple in the first six months of 2023. 

Moreover, high-net-worth buyers are increasingly choosing low-tax and vacation destinations like Dallas-Fort Worth and Houston, both of which saw transaction totals increase 200 percent year-over-year, and places like Jackson Hole, which witnessed a renaissance during the pandemic and has stayed popular with 60 percent more ultra-luxury sales in the first two quarters of the year compared to the same time last year. Another booming market is the Phoenix area, where self-made "boomer" buyers are increasingly drawn to its tax-friendly environment. The income tax in Arizona is under three percent, and $10M and over sales are up 18.7 percent year-over-year. To view the list of markets that outperformed last year's transactions totals click here.

Inspired Buyers Keep Los Angeles on Top 

One of the primary drivers behind ultra-luxury deals in Greater Los Angeles was the "mansion tax" deadline, which motivated discerning buyers to act, resulting in the closure of a staggering 160 ultra-luxury deals during the first half of the year, amassing a sales volume of $3.21 billion. As a result, Greater Los Angeles secured the top position for total transactions and sales volume in the ultra-luxury segment, followed by Manhattan, Miami Dade, and Palm Beach County. A list of the top 20 markets profiled, ranked by transaction totals can be found here and the list for sales volume can be found here.

"While the traditional coastal markets continue to thrive, we are seeing inspired interest in unique homes and estates in markets that just a few years ago had little to no activity at this level," said Felipe Hernandez Smith, head of the Compass Luxury Division. "What remains true regardless of real estate cycles is that buyers eagerly seek exceptional properties."

The Luxury Division at Compass developed this report. It was established in February 2020 to elevate the level of agent support, enhance the aesthetic of marketing elements, and embolden the presence of exclusive properties within the marketplace. Exclusive offerings from the Luxury Division are tailored to aid Compass agents from the preparation to the promotion and the ultimate sale of a luxury property, all curated to meet the standard that luxury commands.

To view the complete report, visit the COMPASS Luxury Division website: https://www.luxuryatcompass.com/ultra-luxury. 

[^1] All data in this press release is derived from the Compass $10M+ National Luxury Report Mid-Year 2023, Ultra-Luxury, available on the Compass Luxury Division website. Please refer to that report for additional information, including all of the publicly available sources from which each market’s data was derived.

[^2] Sales Volume, in this context, is calculated as the monetary value of exchanges of property rights from one entity to another at and above 10 million dollars during the time periods described.

[^3] Transaction Volume, in this context, is calculated as the number of exchanges of property rights from one entity to another at and above $10 million dollars, during the time periods described.