Matrix Blog

Posts Tagged ‘highest list price’

Bloomberg View Column: How Long Before a Home Lists for $1 Billion?

June 25, 2015 | 10:49 pm | | Charts |

BVlogo

Read my latest Bloomberg View column How Long Before a Home Lists for $1 Billion?. This post went #1 on the Bloomberg Terminal and on the public facing BloombergView.com site for about a day and a half. Crazy.

halfbillionBV

Here’s an excerpt…

When a Los Angeles hilltop home that’s under construction was recently priced at a record half-billion dollars, it looked like a one-off in excess. The same thought occurred to me late last year when real estate investor Jeff Greene, who won big betting against the housing market before the financial crisis, priced his renovated Beverly Hills, California, home at $195 million…

[read more]


My Bloomberg View Column Directory

My Bloomberg View RSS feed.

Tags: , ,


Palace: When A $500 Million Asset Is Not A Home

May 26, 2015 | 3:15 pm | |

2015.05_airoletop

When I was called by Bloomberg News about a new Bel Air (LA) listing that was asking $500m and another one down the block by the same architect but different developer at around $400 million, my initial reaction was laughter. I wasn’t doubting that there could be a buyer somewhere out there somewhere…but rather at the absurdity of it. It also seems like a strike against it to have a nearby home done by the same architect, no?

As I told a bank executive/client this morning that it’s clearly a strange world when someone builds spec housing for a handful of buyers worldwide and no houses in the local market have ever sold close to half the proposed asking price (including Jeff Greene’s $195 million listing that has been on the market since December.)

At a combined $100k square feet (main house + 3 smaller houses), it will be bigger than “Versailles” a 90k square foot house outside of Orlando, Florida that was the subject of the documentary “Queen of Versailles.”

According to NAR, the U.S. median home sales price is currently $219,400.

If the Bel Air home is sold, it is doubtful this would end up as someone’s primary residence. Perhaps we should label this type of asset as something else besides a “home?”

How about a Palace?

That’s what the architect suggested:

“It’s very similar to a palace,” he said. “The house is about public functions rather than domestic living.”

Tags: , , , , , , ,