A Russian billionaire recently paid $100MM for a 25,5000 sq ft home in Los Altos Hills, CA – Silicon Valley. The sale demonstrates how some luxury properties are insulated from the overall US housing slump….and contrasts starkly to the state of the national real-estate market. Housing data show that prices continue to fall, and economists have forecast further declines between 5% and 10% for much of this year. While the high end has not been immune to deep discounting and distress sales, industry watchers say it has been relatively insulated, Luxury buyers often pay cash, allowing them to bypass tighter lending restrictions.
By Juliet Chung and S. Mitra Kalita, March 31, 2011, WSJ