A new report from Redfin, covered by The Mortgage Point, tracks exactly where luxury home prices are rising fastest across the country, and the numbers make clear that high end buyers are simply operating in a different economy than everyone else. In the three months ending May 31, the median luxury home sale price rose 4.7 percent year over year to $1.37 million, more than triple the growth rate of non-luxury sales.
Tampa and Miami led the nation in luxury price growth, up 15.6 percent and 14.2 percent respectively, driven largely by wealthy buyers drawn to Florida's tax environment and waterfront lifestyle. San Francisco, meanwhile, saw the largest jump in luxury pending sales nationwide, up nearly 46 percent, fueled in large part by tech wealth flowing back into real estate. The pattern lines up with the Zillow data above. Affluent buyers are largely insulated from high mortgage rates and broader economic uncertainty, and that insulation continues to show up as strength at the top of the market nationwide.
- The median U.S. luxury home sale price rose 4.7 percent year over year to $1.37 million
- Tampa and Miami led the nation in luxury home price growth, at 15.6 percent and 14.2 percent
- San Francisco saw the largest increase in luxury pending sales, up nearly 46 percent year over year
- Luxury new listings actually rose while non-luxury listings declined, as owners take advantage of strong demand
Every luxury market has its own drivers, whether that is tax policy, tech wealth, or lifestyle appeal, but the underlying theme holds true everywhere including here at home. Well positioned luxury inventory continues to attract serious buyers, even in a market that feels slower for everyone else.
