A recent poll by Fannie Mae found that most young people surveyed think that now is the worst time to buy a house.
But apparently the rich, who got richer during the pandemic (Oxfam found that the wealth of world’s 10 richest men doubled) are going all in on luxury real estate.
“More than $40 billion worth of residential real estate valued at $10 million or higher changed hands in 2021,” according to a report from Compass (COMP) – Get Compass Inc Report, a real estate brokerage.
It also noted that there were more than 2,300 transactions of homes priced at $10 million or higher last year.
That’s more than double the same amount from last year.
Los Angeles had the most high-end transactions, followed by Manhattan and Palm Beach. But even Long Island had $101 million in sales alone, with five properties selling for $10 million or more last year.
The boom in sales was precipitated by a booming stock market and low interest rates engineered by the Federal Reserve to prop up the economy during the pandemic.
With inflation continuing to rise and the stock market acting in unpredictable ways, the wealthy are continuing to view real estate as a safe investment.