The median price of luxury homes in the United States surged by 9% year-over-year to a record $1.225 million in the first quarter of 2024, according to a report from the real estate company Redfin. This growth significantly outpaced the 4.6% increase in non-luxury homes, which reached a median price of $345,000 during the same period.
Redfin defines luxury homes as those in the top 5% of their metro area based on market value, while non-luxury homes fall in the 35th to 65th percentile.
The report highlights the resilience of the luxury housing market, with affluent buyers being less impacted by high mortgage rates. The weekly average 30-year fixed mortgage rate in the first three months of the year stood between 3.25% and 3.5%, according to Freddie Mac.
“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent, in the report. “They’re ready to buy with more optimism and less apprehension.”
However, despite the strong growth in luxury home prices, new listings for upscale homes surged 18.5% in the first quarter, indicating that supply is still below pre-pandemic levels.
