The price of luxury homes in the U.S. rose 8.
8 percent in the second quarter of the year compared to the same period in 2023, —reaching an all-time high that is scaring off potential buyers, especially in states like Florida. The typical U.S.
luxury home sold for a record $1,180,000 between April and June, jumping up almost 9 percent compared to a year earlier—the biggest increase in nearly two years. During the same period, the median sale price of non-luxury homes rose by a more modest 3.8 percent to still reach a record high of $342,500.
Whichever way you turn, it's a tough time for buyers, especially as mortgage rates continue hovering around the 7 percent mark and prices won't come down either. But the pace at which luxury home prices have risen is more than double that of non-luxury homes. According to Redfin's definition, luxury homes are those estimated to be in the top 5 percent of their respective metropolitan area based on market value.
Non-luxury homes, on the other hand, are estimated to be in the 35th to 65th percentile based on market value. In some Florida cities, the high price of luxury homes is discouraging sales. In Fort Lauderdale, where prices increased by 8.
23 percent year-over-year in the second quarter of the year, the number of homes sold fell by 0.8 percent. In Orlando, where prices increased by 9.
7 percent year-over-year in the same time frame, the number of homes sold dropped 3.7 percent compared to a year earlier. In West Palm Beach, prices r.