Luxury home sale prices were up by 3.9% year-over-year to a median $1.25 million, a record high for the month of August, according to new data from Redfin.
Luxury home prices grew nearly three times faster than non-luxury home prices, which increased 1.4% to a median $370,000. However, August’s median was below the all-time high of $1.35 million in March.
But while prices were up, luxury home sales dropped by 0.7% year-over-year to the lowest August level since at least 2013, when Redfin’s data tracking began). Still, this mirrored the sales activity of non-luxury homes, which dropped 0.6% for what was also to the lowest August level on record. The year-over-year movement on pending sales of luxury homes (up 0.1%) and non-luxury homes (down 0.1%) were virtually flat in August from one year before.
Sales were stagnant even as the number of luxury homes on the market grew 9.5% last month to the highest level for August since 2020. The number of non-luxury homes for sale grew faster (13.4%) to reach the highest August level since 2019.
“Sales have slowed across all price tiers, and luxury homes are no exception,” said Redfin Senior Economist Sheharyar Bokhari. “Last year was super slow in the luxury market and this year is even slower. High-end buyers often keep the market moving because they’re less tied to mortgage rates, often buy in cash, and can prioritize lifestyle over affordability. But right now, many of those buyers are waiting on the sidelines, holding out for more certainty around the economy and the housing market.”
