Greater Los Angeles saw 628 residential sales at $10 million and above in 2021, totaling $10.6 billion, a 90.3 percent increase in transaction volume and a 97.5 percent increase in sales volume, compared to 2020
Suburban Long Island, excluding the Hamptons, saw five residential sales at $10 million and above in 2021, totaling $101 million, a 400.0 percent increase in transaction volume and an 853.9 percent increase in sales volume, compared to 2020
Austin saw 11 residential sales at $10 million and above in 2021, totaling $189 million, a 450.0 percent increase in transaction volume and a 562.3 percent increase in sales volume, compared to 2020
NEW YORK, NY, FEBRUARY 9, 2022 — Compass, Inc. (NYSE: COMP), a leading technology-enabled residential real estate brokerage, recently released its first-ever ultra-luxury market data report. The report, developed by the company's Luxury Division, focuses on year-over-year residential real estate sales at $10 million and above within 30 key markets across the country in which Compass operates. The report is inclusive of aggregate market data from each market’s Multiple Listing Service or equivalent. [^1]
A host of factors, including tech industry growth, consumer lifestyle changes, and historically low-interest rates, made 2021 one of the most unique years the industry has ever seen, particularly within the ultra-luxury sector.
"The pandemic only accelerated the need for abodes that double as sanctuaries," said Lena Johnson, Co-Head of Compass’ Luxury Division. "Substantial year-over-year increases within this elevated price bracket, where it is not uncommon for people to own multiple homes in prime localities, demonstrates that beautiful homes are always in vogue."
Transaction Volume [^2]
Collectively, over 2,300 residential properties transacted at or above $10 million dollars in 2021, across the 30 markets profiled, a 111.6 percent increase over 2020. Los Angeles was the top market with a total of 628 transactions, accounting for 27.3 percent of all residential sales at or above $10 million dollars for 2021. Next in line was Manhattan with 326 transactions, followed by Palm Beach with 203 transactions. When looking at 2020 versus 2021 transaction volume changes for $10 million dollar and above sales, Austin experienced the greatest increase at 450.0 percent, followed by Suburban Long Island, excluding the Hamptons, at 400.0 percent, and Florida’s Coconut Grove, Coral Gables, and Key Biscayne area at 233.3 percent. The complete list of all Compass markets profiled, ranked by sales transactions from 2021, can be found here.
“The majority of the top one percent have seen a dramatic increase in overall wealth," said Carl Gambino, a Compass agent in Los Angeles. "Many look at luxury real estate as a safe and appreciating asset that's a hedge against inflation. Furthermore, many buyers are pursuing a very few prime properties which have created a strong seller's market causing prices to explode."
Sales Volume [^3]
Over $40 billion dollars worth of residential real estate at or above $10 million dollars was transacted in 2021, across the 30 markets profiled, increasing 138.0 percent from 2020. Mirroring the top markets based on transaction volume, the markets which experienced the greatest sales volume in 2021 of properties at and above $10 million dollars were Greater Los Angeles with $10.6 billion dollars, Manhattan with $6.31 billion dollars, and Palm Beach with $3.75 billion dollars. The complete list of markets profiled, ranked by sales volume from 2021, can be found here.
"We are projecting a very strong 2022 overall in Austin and Central Texas," said Gary Dolch, a Compass agent in Austin. "We already see solid tailwinds for Q1 and Q2 with limited supply and strong demand we are already receiving multiple offers. As good as it's been here, we think we're still in the early days with at least a five-year runway ahead of us, especially in executive estates, waterfront, and ranch properties.”
Suburban Long Island witnessed the most significant increase in 2021 sales volume of properties at and above $10 million dollars, with nearly a 854.0 percent increase over 2020. The second biggest jump was in Austin with $189 million in sales volume for 2021, representing a 562.3 percent increase over 2020, followed by Telluride with $186 million in sales volume for 2021, a 319.4 percent increase over 2020.
Based on residential sales volume from the third quarter of 2021, Compass is number one in market share in 10 major metropolitan markets across the country [^4], including Boston, Denver, Houston, Los Angeles, Nashville, New York City, Philadelphia, San Diego, San Francisco, and Washington D.C.
The Luxury Division at Compass was established in February of 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 to the ultimate sale of a luxury property, all curated to meet the standard that luxury commands.
To view the complete report, please visit the Compass Luxury Division website.
[^1] All data in this press release is derived from the Compass $10M+ National Luxury Report 2021, 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] 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.
[^3] 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.
[^4] Based on data from the Multiple Listing Service PIN & BrokerMetrics (Boston, MA), the REColorado Multiple Listing Service & BrokerMetrics (Denver, CO), the Houston Association of REALTORS® Multiple Listing Service & BrokerMetrics (Houston, TX), the Los Angeles Multiple Listing Service & BrokerMetrics (Los Angeles, CA), the Realtracs Nashville Multiple Listing Service & BrokerMetrics (Nashville, TN), Urban Digs (New York, NY), the Bright Multiple Listing Service & BrokerMetrics (Philadelphia, PA & Washington D.C.), the San Diego Multiple Listing Service & BrokerMetrics (San Diego, CA), and the San Francisco Association of REALTORS® Multiple Listing Service & BrokerMetrics (San Francisco, CA) for the periods and locations described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from the sources stated herein.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Compass' current perspective on existing trends and information as of the date of this release. Statements containing words such as "project," or similar expressions constitute forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Compass' current expectations depending upon a number of factors affecting Compass' business, including, but not limited to, expansion into new markets, prevailing market conditions, the impact of general economic, industry or political conditions in the United States or internationally, and risks related to the impact of the COVID-19 pandemic. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For information about other potential factors that could affect Compass' business and financial results, please review the "Risk Factors" described in Compass' Form 10-Q for the quarter ended September 30, 2021 filed with the Securities and Exchange Commission (the "SEC") on November 12, 2021, and Compass' other filings with the SEC. Except as may be required by law, Compass undertakes no obligation, and does not intend, to update these forward-looking statements after the date of this release.
