U.S. Luxury Home Sales Fall to Lowest Level in Over a Decade
The U.S. luxury housing market reached a median sale price of $1.25 million in August 2025, up 3.9% year over year, outpacing the 1.4% increase seen in non-luxury homes. While prices continued to climb—especially in markets like West Palm Beach, FL (+15%) and New York (+12.3%)—sales activity slowed significantly. Luxury home sales fell 0.7% to the lowest August level since Redfin’s data began in 2013, with non-luxury sales similarly down 0.6%. Homes are also taking longer to sell, with the median time on market rising to 46 days for luxury properties and 40 days for non-luxury. Fewer homes are going under contract quickly, reflecting hesitancy among buyers who are waiting for more favorable economic conditions.
Despite slower sales, inventory is climbing, with luxury home supply rising 9.5% to the highest August level since 2020 and non-luxury inventory up 13.4% to the highest since 2019. Regional trends were mixed: Indianapolis, Fort Worth, and San Francisco posted double-digit gains in luxury sales, while West Palm Beach, San Jose, and Miami saw steep declines. Market behavior indicates that even affluent buyers, often less impacted by mortgage rates, are showing caution—opting to wait out the uncertainty or aggressively negotiate price cuts. With sellers facing longer listing times and higher competition, the luxury segment mirrors broader housing market stagnation, even as values in some metros continue to rise.
