Luxury home prices continue climbing
The average luxury home sale price in the U.S. rose 4.6% year over year to $1.31 million in December 2025. Only two metros saw a decline; Fort Worth, Texas and Portland, Ore. Luxury home prices are not rising because demand is high, but because affluent buyers are competing over the desirable homes on the market.
“Homebuyers are very selective because prices and mortgage rates are high;they want a house that has everything,” said Alin Glogovicean, a Redfin Premier real estate agent in Los Angeles. “Even super wealthy buyers are hesitant to pull the trigger because there’s not a lot of great inventory and they don’t want to settle. We’re seeing bidding wars on the few homes that are desirable, which is driving up prices. If you list your house for $2.9 million and it’s in really good shape and in a desirable location, you might sell it for $3.3 million and get a buyer who pays cash and waives contingencies.”
