Coldwell Banker today announced that its 2005 total sales volume of U.S. and Puerto Rico homes valued at $1 million or more hit a record high of $55.9 billion, up 24 percent from a previous record of $45.2 billion set in 2004.
Coldwell Banker-affiliated companies nationwide participated in more than 31,000 luxury transaction sides in 2005. There are two sides to every real estate transaction: a buy side and a sell side. The average sales price for luxury-home transactions listed and/or sold by Coldwell Banker affiliated companies in 2005 was $1.79 million, according to the announcement.
Among the findings in the latest annual Coldwell Banker Luxury Home Sales Report:
- In California, the Coldwell Banker organization reported more than six times more sales volume of luxury homes than any other state, at almost $31 billion, representing 55 percent of all Coldwell Banker luxury sales.
- The top eight cities with the highest total Coldwell Banker luxury-home sales volume were all in California, with Los Angeles boasting the highest luxury sales volume in the United States.
- A $39.3 million home sale in Beverly Hills, Calif., was the largest closed transaction side by a U.S. Coldwell Banker sales associate in 2005.
- California featured 13 home sales priced between $20 million and $25 million in 2005.
- Florida ranked second in the nation with $5 billion in Coldwell Banker luxury-home sales volume.
- Massachusetts, New Jersey, Illinois, Connecticut, Arizona and New York joined California and Florida as states reporting more than $1 billion in Coldwell Banker luxury-home sales volume.
- Arizona featured two cities in the top 10 in luxury-home sales volume: Paradise Valley ranked ninth with more than $637 million in sales volume, while Scottsdale ranked 10th, reporting over $593 million in sales volume.
- In 2005, Kansas (309 percent), Idaho (189 percent) and Arizona (177 percent) reported the highest percent increases in luxury-home sales volume.
The top five cities reporting the largest increases in luxury-home sales volume in 2005 over 2004 are:
- Paradise Valley, Ariz., increased 251 percent and jumped 43 places in the ranking.
- Scottsdale, Ariz., increased 205 percent, rising 37 places from the 2004 standings.
- Glencoe, Ill., climbed 90 percent and is ranked 44th in total luxury-home sales volume, and Glencoe rose 28 places in the 2005 Coldwell Banker luxury market report.
- Naples, Fla., increased 82 percent and now is ranked 27th in total sales volume. Naples climbed 17 places from 2004.
- Phoenix rose 79 percent and is now ranked 69th in total sales volume. Phoenix jumped 44 places in the ranking.
The Coldwell Banker brand reported 30,412 transaction sides in luxury homes priced between $1 million and $5 million. This was the brand’s most active luxury segment. The brand also reported 640 transaction sides in the $5 million to $10 million segment.
In 2005, the Coldwell Banker system reported 118 transaction sides between $10 million and $30 million.
“The demand for luxury homes continues to be fueled by Baby Boomers who remain in their prime home-buying years,” said Jim Gillespie, president and CEO of Coldwell Banker Real Estate Corp., in a statement. “This group has amassed great wealth through investments, inheritances and equity and appreciation of their homes. Their strong buying power, coupled with the historically low mortgage interest rates we have enjoyed over the last few years, have spurred the luxury-home-buying segment, which also includes second homes and new construction.”
The Coldwell Banker franchise system has about 4,000 residential and commercial real estate offices and 126,400 sales associates in 30 countries and territories. Coldwell Banker Real Estate Corp. is a subsidiary of Cendant Corp. Each office is independently owned and operated except for offices owned and operated by NRT Inc., a brokerage company subsidiary of Cendant.
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