Luxury Is Leading on Price
Let’s start with prices. But before we get into it – what actually counts as a luxury home? Generally, these are homes in the top 5% price range for the area, so it varies depending on where you live.
But what’s interesting is that according to the latest data from Redfin, sale prices for luxury houses have risen about three times faster than for non-luxury.
Right now, the typical home’s sale price is up about 1.5% year-over-year. But high-end homes? Their sale prices have gone up nearly 5% since last year (see graph below):
That’s a bigger deal than it sounds like.
Despite all the talk about slowing price growth lately, sale prices in this segment of the market may be rising faster than you’d expect based on the headlines. That’s going to be a good thing if you’re thinking about selling. And rising sale prices are only half the story.
Buyers Are Showing Up, Too
While so many headlines are talking about how buyers are pulling back, that’s not necessarily true when it comes to luxury homes. In fact, right now, it looks like the higher the price point, the more active the buyers.
Lawrence Yun, Chief Economist with the National Association of Realtors (NAR), explains:
"The luxury market has really performed better compared to the lower price point. . . . if we look at price points, any home priced under $250,000, virtually no change in unit sales from one year ago. Then you go into the upper price category, and home sales are up about 10% from one year ago. But the million dollar-plus homes, it is up by 18% from one year ago."
Basically, more homes are selling on the upper end of the market. A big reason is that high-end buyers tend to feel less of the affordability pressure weighing on many households today, so they keep buying even when the wider market slows.
That demand also means that luxury houses don’t stay on the market as long as they used to.
Luxury Houses Are Selling Relatively Quickly
According to the most recent data from Redfin, for luxury homes the median number of days on market is under 50. That’s much faster than pre-pandemic norms going even as far back as 2014 (see graph below):
That means you probably won’t spend a ton of time sitting in limbo wondering when you’ll get an offer.
Bottom Line
Selling a high-end house is a big decision, and you deserve to feel confident going in. With sale prices climbing and buyers active at the top, this is a strong window to make your move.
Ready to cash in? Let’s talk strategy.
