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tonyberkman
2 years ago
The New Price of Luxury: $40 Million

"Once extremely rare, $40 million price tags are now popping up across the country," writes Candace Taylor of the All Street Journal.

Her article discussed how "$40 million became a standard asking price for luxury real estate?"  In it she says that "Over the past year, there were more than 300 homes for sale across the country priced from $35 million to $49 million—an increase of 24% from the prior year, according to data from real-estate website Trulia."

While $40 million is a lot of money for a home,  it's difficult to support a statement that say $40 million has become a "standard asking price for luxury real estate" when there were a total of 300 homes in the USA sold for $35 million to $49 million.  Perhaps it is at the high end of luxury though there certainly exists a much larger number of luxurious homes for far less than $35 or $40 million.

Near the end of the article she qualifies her claim that $40 million has become the new price for luxury when she more accurately describes these homes as "super luxury."  This gets closer to reality about what these $35 million+ homes represent however it fails to recognize that their are substantially more "super luxury" homes available for $1 million to $5 million in parts of the country other than NYC  - though it's easy to easy to understand why an analyst focused on NYC would conclude that NYC is representative of the entire country.   

 

http://www.wsj.com/articles/the-new-price-of-luxury-1429796883