Luxury-Home Price Growth Outpaces Non-Luxury Market

Nationwide home prices have moderated in recent months, but that trend isn’t necessarily true for all sectors of the housing market. According to recent data from real estate marketing platform Redfin, luxury home prices rose by 5.5% year-over-year in October to a record high median price of $1.27 million. At the same time, non-luxury home prices grew by just 1.8% to a median of $373,249.

Luxury home sales are also growing, although sales in the luxury sector remain close to their lowest October levels in over the past decade. Even so, the luxury market recorded more sales in October than the rest of the housing market. Luxury home sales grew by 2.9% year-over-year, while non-luxury sales rose by 0.7% over the same period. 

“The luxury market has been a little more protected over the past year, compared to non-luxury or starter homes,” said Jonathan Buch, a Redfin Premier Agent in West Palm Beach, FL. “Affordability challenges have made it more difficult to sell homes priced under $800,000, but high-end properties are still moving.”