Home prices have risen steadily in recent years, but houses classified as “mansions” and “luxury homes” are not doing well. Such properties sell for an average of 20-30% below the estimated value.
As the housing market in prime areas of large cities cools down, larger houses and mansions in these regions find it difficult to sell or rent. This can impact their value tremendously and has led to some significant price drops.
Palazzo di Amore in California
This mansion is known to be so expensive that even some of the wealthiest Americans can’t afford it. It has a level of luxury that seems a bit excessive and may be why it can’t find a new owner. Billionaire Jeff Greene put the mansion up for $195 million.
While waiting for the mansion to sell, Greene rented it out for $475,000 monthly. There were no takers at that price, so Greene had to drop the price to $129 million. The rent also went down to $295,000 per month.