If a waterfront estate in Naples, Florida, sells for anywhere close to its $295 million asking price, it will set the record for the most expensive residential real estate sale ever in the U.S.
Financier John Donahue paid $1 million for the then-4.3-acre tropical retreat at the far edge of a peninsula in the exclusive Port Royal neighborhood, according to The Wall Street Journal. He continued to purchase nearby land, ultimately acquiring 60 acres.
A 9-acre portion of the property with 1,650 feet of waterfront, three houses and a private yacht basin with a T-shaped dock is being offered for sale. The homes include an 11,500-square-foot house with six bedrooms and a screened-in pool; a 5,500-square-foot residence with five bedrooms and an outdoor pool built in 1990; and a 5,800-square-foot structure built in 2013.
The property “could be an ideal private and gated family compound with a few incredible homes or the potential for several special home sites that feature an incomparable 728 feet of beach frontage and 927 feet of bay frontage for an incredible total of 1,655 feet of water frontage,” according to Coldwell Banker Realty’s Dawn McKenna Group’s listing page.
To date, the record for a home sale was set by hedge fund billionaire Ken Griffin, who paid about $240 million in 2019 for a combination penthouse at 220 Central Park South in Manhattan, New York.
While a $295 million compound is out of reach for most people, luxury homes are available at more reasonable prices — especially for cash buyers.
Luxury home prices increased 9% in the third quarter of last year to $1.1 million as high-end buyers avoided high mortgage rates by paying cash, according to a report from Redfin. Cash buyers purchased 43% of luxury homes, compared to 35% in 2022.
“Wealthy homebuyers have more tools to weather the storm of high mortgage rates,” Redfin Senior Vice President of Real Estate Operations Jason Aleem said. “Many of them can afford to pay in cash, meaning they’re escaping high mortgage rates altogether. Others are choosing to take on a higher rate and refinance later — an expensive option that isn’t feasible for a lot of lower-income consumers. Affluent Americans are still spending big, in large part because of pandemic savings and resilient housing and stock values.”
Housing supply is up 3% in the luxury market but down 21% in the nonluxury market, according to Redfin. One reason for the uptick in inventory is that luxury homeowners aren’t as likely to feel locked into their low mortgage rate — they either don’t have a mortgage, or they have the means to take on a higher rate. Even so, the trend isn’t likely to last.
“While many luxury buyers have the resources to forge ahead even when mortgage rates are elevated, stubbornly high rates and home prices will likely push some affluent house hunters to the sidelines in the coming months,” Redfin Chief Economist Daryl Fairweather said. “High costs, along with the uptick in the number of high-end homes for sale, could cause luxury prices to cool.”
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Property photo courtesy of Dawn McKenna Group/Coldwell Banker Realty
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This article $295 Million Estate Poised To Make Splash As America’s Priciest Residential Sale, Further Boosting South Florida’s Booming Real Estate Market originally appeared on Benzinga.com
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