In the Hamptons, sales volume reached $490 million, among the greatest volumes the region has ever traded in the second quarter. This is mostly due to buyer preference for high-value transactions, particularly in turnkey properties, rather than in value properties. Historically, the second quarter usually favors turnkey, in that buyers want to be able to immediately spend the summer in their new property. But the sheer scale of volume this quarter is like nothing we’ve ever seen, demonstrating the insatiable demand for $10 million+ Hamptons homes.
In South Florida, we broke another record. Bespoke facilitated the most expensive sale in the region’s history—18 La Gorce Circle in Miami, which finished the quarter in contract with a last asking price of $132 million. The 3-acre property has 650 feet of uninterrupted views of Biscayne Bay and the Miami skyline. Comprised of four parcels, each featuring its own private dock, together the combined estate is the largest in Miami Beach and one of the largest real estate purchases ever made in the area.
Manhattan trades were down year-over-year in Q2, with 55 trades over $10M compared to 65 in Q2 of 2023. The appeal of turnkey townhouses and high-end condos continues to drive the market, which price higher compared to other property types. Accordingly, the $30-$40 million price segment saw a 28% increase since Q2 2023.
As we look ahead towards the rest of the year, we are focusing on micro and macroeconomic factors. Across all three markets, quality local inventory still lags behind demand, a common theme we’ve seen every quarter since 2020, so much so that we’ve seen a piqued interest in off-market properties. On a macro level, it is still unclear whether there will be a meaningful drop in interest rates prior to the end of the election cycle. If there are, it would further boost trade activity and potentially lead to more record-breaking quarters. As with all economic cycles, this phase of high interest rates will inevitably come down in the near future, though whether that is before the end of the year or in 2025 remains yet to be seen. In any case, the lowering of rates will certainly boost buyer activity across all ultra-luxury $10 million+ markets.
The milestones we’ve reached this quarter feel fitting as we mark our tenth year in business, having focused relentlessly on servicing $10 million+ homebuyers and reaching over $10 billion in sales. With the positive movements we anticipate for the rest of the year, we are optimistic about luxury real estate in 2024 and Bespoke’s role in shaping it.
Hope you enjoy.
Michael Cantwell
Founding Partner and CMO of Bespoke Real Estate
