The majority of the housing market has seen steady growth lately, but luxury home values have been unpredictable.
While the vast majority of house prices have grown over the last two years, luxury home values have been all over the place.
A quarterly analysis of more than 1,000 cities from Redfin noted that the prices of luxury homes, defined as the top 5 percent most expensive homes sold in each city, was up 0.8 percent in the second quarter compared to last year. The average luxury home is now worth $1.6 million.
Last quarter, though, luxury prices were down 1.1 percent compared to the previous year. Price growth has slowed considerably since Q1 of 2014, when luxury homes registered a 15 percent year-over-year increase. Meanwhile, the value of non-elite homes, the lower 95 percent of the market, has had a steady 5 percent increase each quarter for the last two years.
Redfin also found that the luxury home markets are faring well in cities like Boston, Portland, and Miami Beach, Fla., and that prices are declining in a number of California cities, like San Francisco and Long Beach.