As Prices Rise, Luxury-Home Sales Fall

Buyers across all segments of the housing market, including luxury homebuyers, are feeling bogged down by high prices. In April, the average U.S. luxury home sold for about $1.35 million, a 6.5% increase from the previous year, according to recent data from real estate marketing platform Redfin. At the same time, pending luxury-home sales dropped nearly 10% year-over-year, the sharpest decline since August 2023 and the weakest April since 2014. By comparison, pending sales of non-luxury homes fell by 3.4% during the same period. However, luxury homes are still selling at about the same pace as in 2024, spending an average of 52 days on the market. 

The spring homebuying season is off to a rocky start across all price points, with homebuyers facing record prices, elevated mortgage rates and economic uncertainty—and the luxury market is no exception.

“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.”