The typical U.S. luxury home sold for a near-record $1,348,065 in April, up 6.5% from a year earlier, according to a report from Redfin.
For the three-month period ended in April, luxury home prices grew the most in West Palm Beach (+25.8%) and fell the most in San Francisco (-2.2%) — which also saw the biggest increase in sales of the 50 most populous metros, according to the firm’s data.
The luxury home market, however, is off to a rocky start this spring season due to record prices, elevated mortgage rates and economic uncertainty.
“Many luxury buyers are adopting a wait-and-see approach because of volatility across financial markets and shifting tariff policies,” says Sheharyar Bokhari, senior economist for Redfin, in the report. “These high-end buyers often sell stock to help with down payments, but many pressed pause on their home search when the stock market tumbled in April. As a result, what is usually a fiercely competitive space is cooling.”
Redfin defines luxury homes as those estimated to be in the top 5% of their respective metro area based on prices of homes sold over a rolling 12-month period, and non-luxury homes as those estimated to be in the 35th-65th percentile.
Pending luxury sales dropped nearly 10% in April, the largest decline since August 2023 and the lowest level for any April since 2014, according to Redfin.
Pending sales of non-luxury homes fell 3.4% to also hit the lowest April number since 2014.
Closed — or finalized — sales fell for both categories in April, with luxury home sales down 6.5% and non-luxury sales down 4.3%.
“Buyers looking at homes from $1.2 million up are almost non-existent right now,” says Meme Loggins, a Redfin Premier agent in Portland, Ore., where luxury sales are down more than 5% from a year ago. “Even in nice areas, high-end homes are selling really, really slow. If I have a buyer who finds the perfect house and is ready to make an offer, they tend to sleep on it for a little, and then they come back to me and say ‘nope, I think we’ll wait and see if the price comes down.’”
The number of luxury homes on the market grew 7% last month to the highest level for April since 2021.
“Even though luxury sales are down overall, the most desirable homes are still being snapped up relatively quickly,” Bokhari adds. “That’s because many wealthy buyers have the means to weather economic uncertainty and make large purchases without overextending themselves.”
“In comparison, non-luxury home sales took considerably longer than a year ago, with the median days on market increasing to 45 from 39. The share that went under contract within a week fell 3.5 points to 26.1 percent, while the share going under contract within two weeks fell 4.1 points to 38.5 percent.”
Photo: Laurel and Michael Evans