Luxury home prices were up by 4.9 percent year-over-year in the third quarter to an average of $1.71 million, according to the latest luxury market report
from Redfin. In comparison, the average price for non-luxury homes was $336,000 in the third quarter, up 5.3 percent year-over-year.
While prices were up, inventory was not. The number of homes for sale priced at or above $1 million fell 18.1 percent compared to the same period last year, marking two consecutive quarters of a decline in the number of high-end homes for sale. And the number of homes priced at or above $5 million dropped by 19 percent during the same period. This marked the first quarter in which luxury inventory fell year-over-year in the three years that Redfin has analyzed this sector.
“There is still strong buyer demand for high-end homes,” said Redfin Chief Economist Nela Richardson. “Despite declining inventory, luxury sales soared in the third quarter. Sales of homes priced at or above $1 million were up 11 percent from a year ago, while sales of homes priced at or above $5 million were up almost as much at 10 percent.”