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Luxury home prices climb as demand outpaces non-luxury sales
In the three months ending May 31, the median luxury sale price rose 4.7% year over year to $1.37 million, driven by a 5.2% increase in luxury pending sales.
Luxury home prices in the U.S. are rising much faster than non-luxury prices, according to Redfin’s analysis of MLS data. The median U.S. luxury home sale price increased 4.7% year over year to $1.37 million during the three months ending May 31, more than triple the 1.5% gain in non-luxury sale prices.
Redfin said demand is strengthening for higher-end homes, with luxury pending sales up 5.2% year over year, the largest gain since December 2024. Non-luxury pending sales rose 3.6% year over year, a slower pace than the prior month.
The report attributes the split to differing buyer sensitivity to affordability pressures. Redfin noted overall homebuying demand has been slow because mortgage rates and home prices remain elevated, while economic uncertainty tied to the Iran war back-and-forth, inflation, and the possibility of Fed rate hikes is making some buyers hesitant. By contrast, ultra-wealthy buyers are less constrained and can pursue large purchases even amid uncertainty.
Regionally, Redfin highlighted Florida as a standout area where luxury demand is lifting prices. Luxury home prices rose 15.6% year over year in Tampa and 14.2% in Miami, while non-luxury prices fell 0.5% in Tampa and 0.7% in Miami. Among metros with the biggest luxury pending sales gains, three of the top 10 were in Florida, including Tampa with a 20.8% increase, West Palm Beach with an 18.5% increase, and Miami with a 14.6% increase.