The typical luxury home sold for a near-record $1.34 million in April, according to data from Redfin (NASDAQ: RDFN). While this is up 6.5% from one year ago, pending sales of luxury homes in April fell 9.9% year-over-year, the largest annual decline since August 2023 and the lowest level for any April since 2014.
In comparison, non-luxury home prices grew 4.1% to a record high median of $374,598. Pending sales of non-luxury homes fell 3.4% to also hit the lowest April number since 2014.
The median sale price of luxury homes rose most in West Palm Beach, Florida (25.8% increase to $4.13 million), Miami (22% increase to $4.36 million) and San Jose (20.8% increase to $5.5 million). It fell in just two metros, in San Francisco (-2.2% to $6.09 million) and Sacramento (-1.1% to $1.65 million, and stayed flat in Kansas City.
The number of luxury homes on the market grew 7% last month to the highest level for April since 2021 while the number of non-luxury homes for sale grew more than twice as fast (14.7%) to reach the highest April level since 2020. The number of new listings of luxury homes increased 7.3%, growing at more than three times the speed of non-luxury homes (2.3%).
The typical luxury home sold in 52 days in April, virtually unchanged from 51 days a year ago. More than one in four (25.3%) luxury homes went under contract within a week in April, a scant uptick from one year arlier, while the share that went under contract within two weeks also increased a little year over year, rising to 36.4% from 35.7%.
“Many luxury buyers are adopting a wait-and-see approach because of volatility across financial markets and shifting tariff policies,” said Redfin Senior Economist Sheharyar Bokhari. “These high-end buyers often sell stock to help with down payments, but many pressed pause on their home search when the stock market tumbled in April. As a result, what is usually a fiercely competitive space is cooling.”
Redfin defined luxury homes as those estimated to be in the top 5% of their respective metro area based on prices of homes sold over a rolling 12-month period, and non-luxury homes as those estimated to be in the 35th-65th percentile.
