Luxury Market Softens in September
The luxury sector of the housing market is seeing prices stagnate, as well. According to Realtor.com’s September 2025 Luxury Trends Report, the nationwide benchmark (the 90th percentile across of all home listings) for luxury homes declined by 0.5% and by 2.4% year-over-year to $1.24 million, the fourth consecutive month of softening in that sector.
Luxury homes also stay on the market longer
Luxury homes already take longer to sell than the median priced home, but that timeframe was extended slightly in September, according to the report. Homes in this segment of the market were listed for 79 days before selling, which is one day longer than in August and five days longer than in September 2024.
Some luxury markets are much more expensive than the nationwide benchmark
In September, Santa Ana-Santa Barbara, Calif., claimed the top spot as the most expensive luxury market, with the top 10% of most expensive listings there starting at $8.95 million. That metro was followed by Heber, Utah, and Key West-Key Largo, where the top 10% of listings start at $6.5 million and $4.6 million, respectively.
While the nationwide luxury threshold has lowered, prices across the housing market have only gotten closer to luxury pricing over the past several years
- Home Prices Post Biggest Gains Since 2022: Home prices have largely stagnated across the housing market in 2025, but recent years of growth have caused prices to remain elevated. In December 2024, prices rose once again, further closing the gap between typical and luxury housing.
- The $1M Starter Home Is Becoming More Common: In April, the number of cities with starter homes priced at $1 million or more grew to 233 cities.