Luxury Home Prices Jump 3x Faster Than Average
Luxury housing continued to outperform the broader market in October, with prices up 5.5% — nearly triple the growth of non-luxury homes, according to Redfin. Strong equity markets and cash-heavy buyers are keeping high-end demand resilient, even as typical buyers remain constrained by current mortgage rates. Additional findings:
-
Number of sales: Luxury up 2.9%. Non-luxury sales at 0.7%.
-
Both markets are still near decade-low October levels.
-
-
Inventory: Luxury up 6.4%. Non-luxury up 9.5%
-
Highest October levels in 5 years, but still below pre-pandemic norms.
-
-
Days on Market: Luxury up to 58 days. Non-luxury up to 45 days.
-
Signaling a slower, more cautious market overall.
-
Ralph’s Take
The data in the report points to a market that’s cooling in pace but not in price. Luxury buyers, who often pay cash, are keeping high-end demand stable even as overall activity slows. The slightly higher inventory is giving buyers more options, but supply is still well below pre-pandemic levels, which continues to support upward pricing across the board.
Posted by Ralph Ragette Jr on
Leave A Comment