Home prices continue to rise in nearly every segment of the marketplace, including the luxury sector. According to real estate marketing platform Redfin, prices of luxury homes grew by 3.9% year-over-year to a median price of $1.25 million in August. However, this median price is still lower than the all-time high of $1.35 million in March of this year. Still, luxury home prices grew nearly three times faster than non-luxury home prices, which increased by 1.4% to a median price of $370,000.

As prices in the luxury market grow, sales have declined. Luxury home sales fell by 0.7% year-over-year to the lowest August level since at least 2013. Pending sales of luxury homes did increase, however, but by just 0.1%.

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.

New listings of luxury homes were basically flat (0.2%), while new non-luxury home listings fell 0.8%— highlighting that sellers are joining buyers in pulling back from the market.