The median luxury home sale price reached $1.31 million in December, a 4.6% year-over-year increase, according to a new report from Redfin. By comparison, non-luxury prices rose 1.4% over the same period to $375,000, marking the slowest growth in records dating back to 2013.
However, Redfin observed that the increase in luxury home prices was not based on growing demand, but because affluent buyers were competing over a smaller supply. Pending sales of luxury homes fell 1.1% year-over-year in December, the biggest decline in six months. By comparison, pending sales of non-luxury homes fell 0.6%, the largest decline in eight months. Closed sales of luxury homes inched up by 0.4% year-over-year, compared to the 0.7% uptick in non-luxury homes.
And while active listings of luxury homes for sale increased 5.6% year-over-year in December, that marked the slowest growth since April. Non-luxury listings rose at a faster pace of 7%, but that was slowest growth since February 2024. New listings of luxury homes climbed 2.9%, compared with a 2.4% decline in non-luxury new listings.
The typical luxury home that went under contract in December took 64 days to do so, up five days from a year earlier and the slowest December pace since 2020. Meanwhile, the typical non-luxury home took 50 days to go under contract, up six days from a year earlier and the slowest December pace since 2019.
