Luxury market booming thanks to celebrities, say real estate experts
{{#rendered}} {{/rendered}}Beyoncé and Jay Z’s $26 million mansion. Jennifer Lopez’s $10 million dream home. Madonna’s $32 million townhouse.
It's safe to say celebrity real estate is booming, and thanks to the top 1-percent's purchasing spree, even regular folks are seeing the benefits.
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{{#rendered}} {{/rendered}}“The luxury market throughout the country, especially New York City, is red hot,” Tom Postilio, Douglas Elliman real estate agent, tells Fox News.
And Mickey Conlon, another Douglas Elliman real estate agent, adds that all these luxury purchases are good for the neighboring residents.
“Without question, when you have a pricey sale in the neighborhood, there is a halo effect, that does trickle down,” says Conlon.
{{#rendered}} {{/rendered}}CHIP WADE ON THE BEST WAYS TO ADD VALUE TO AN INCOME PROPERTY
In the second quarter of this year, luxury homes rose to an average of $1.79 million (up 7.5 percent). And while inventory is dropping, prices continue to rise. The sales of $1 million-plus homes were up 22.6 percent, and sales of $5 million-plus homes were up 19.6 percent, according to Redfin.
Those numbers might even continue to skyrocket thanks to big-name celebrities who keep buying and selling properties across the country, according to Postilion and Conlon, two heavy-hitters with a combined $1 billion in real estate sales.
{{#rendered}} {{/rendered}}Recently, Tom Cruise sold his estate for about $40 million, LeBron James sold his Miami home for $13.4 million and Adele bought a Beverly Hills home for $10.75 million.
“That’s going to help — over time the values will increase for everyone in that area,” says Postilio. “Prices are set to go up,” echoes Conlon.
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{{#rendered}} {{/rendered}}Be sure to learn more from the real estate gurus in the video above.