A record number of European homes have been sold for more than 10 times the asking price.
The European interior design show revealed Friday that an astonishing 20,000 homes were sold for a staggering $4.4 million apiece in Paris, Munich, Barcelona, Helsinki, Brussels and Rome.
While the record is not as high as some analysts had predicted, the number of homes sold at a price tag of nearly $2.5 million, or nearly 10 times what a typical buyer would pay for an average home in the U.S., shows that the European interior market is thriving and growing.
“The world of interior design is on fire right now, with a lot of excitement and excitement for this new era,” said David Stadler, chief executive of the design firm Wigmore.
“There’s a lot going on in the space.
The markets are opening up and they are opening their doors to the world.
We’re seeing that with these incredible prices.”
A record number…
A record amount of homes were purchased by an average buyer in France and Germany, and the rest of Europe, for a whopping $4,521,000.
The record price is a record high for the European markets, according to a statement from the European Interior Design Association (EIDA).
The average sale price in the region is $3.7 million.
“It’s a record number for the EIDA, and a new record in the industry, and it reflects the popularity of the concept,” said Stadlers.
“We have been seeing the trend for a while, with the average price going up by about 25 percent every year.
The average price in France is $4 million, so it’s definitely not surprising.”
Some analysts have questioned whether the new high prices reflect a healthy market or simply a trend of higher demand.
“This market is in a state of extreme expansion,” said Charles Lipsitz, a managing director at D.E. Jones & Wolfson.
“It’s clearly the best part of the market right now.
But I also think the fact that we’re seeing prices go up is a good sign.
People are looking for value and they’re not satisfied with what they have right now.”
In a recent survey, the European home buyer’s association found that the average cost of buying a home in Europe has risen by an astounding 33 percent over the past decade.
“The trend in European home prices is now a new benchmark for all consumers,” said EIDO chief executive Michel Goude.
“Our survey showed that the cost of a home is growing faster than inflation.
This is a major reason for the surge in home prices.”
The average home buyer in Europe now spends $7,500 a year on average, which is an increase of 36 percent from 10 years ago, according a report by German magazine Der Spiegel.
The typical price of a typical European home is now about $4 Million.