The median sale price for luxury homes in the United States increased by 4.6% year over year to $1.31 million in December 2025, according to a new report from Redfin. This growth contrasts with a 1.4% rise in non-luxury home prices, which reached $375,000, marking the slowest growth recorded since 2013.
Redfin, a technology-driven real estate company and part of Rocket Companies, noted that luxury home prices experienced declines in only two metropolitan areas: Fort Worth, TX, and Portland, OR. The report suggests that the increase in luxury prices is not primarily driven by high demand but by affluent buyers competing for a limited number of desirable properties on the market.
Alin Glogovicean, a Redfin Premier real estate agent in Los Angeles, commented on the market dynamics, stating, “Homebuyers are very selective because prices and mortgage rates are high—they want a house that has everything. Even super wealthy buyers are hesitant to pull the trigger because there’s not a lot of great inventory and they don’t want to settle.” Glogovicean added that desirable homes are experiencing bidding wars, which is driving up prices, with some properties selling above their initial asking price with cash offers and waived contingencies.
Pending sales of luxury homes declined by 1.1% year over year in December, marking the largest decrease in six months. In comparison, pending sales for non-luxury homes fell by 0.6%, which was the biggest decline in eight months. Conversely, closed sales of luxury U.
S. homes, a more backward-looking metric, saw a 0.4% increase year over year, while non-luxury homes experienced a 0.7% decrease.
Active listings for luxury homes increased by 5.6% year over year in December, representing the slowest growth since April. Non-luxury listings grew at a faster rate of 7%, though this was the slowest growth observed since February 2024. This slowdown in supply growth is attributed to sluggish homebuyer demand. New listings of luxury homes climbed by 2.9%, in contrast to a 2.4% decline in non-luxury new listings.
The typical luxury home that went under contract in December took 64 days to sell, an increase of five days from the previous year and the slowest December pace since 2020. Non-luxury homes, on the other hand, took an average of 50 days to go under contract, six days slower than a year prior and the slowest December pace since 2019.
At the metro level, luxury prices saw the most significant increases in Milwaukee (20.6%), Orlando, FL (16.8%), and Nashville (13.6%). Pending sales for luxury homes rose most notably in West Palm Beach, FL (28.6%), San Francisco (16.1%), and Tampa, FL (12%). Active listings for luxury properties increased most in Tampa (40.6%), Detroit (19.2%), and Nashville (17.7%). Luxury new listings climbed most in Detroit (29.4%), Kansas City, MO (22.4%), and Tampa (22.1%). The fastest-selling luxury homes were found in San Jose (13 days), Oakland (16 days), and St. Louis (23 days).
These findings are based on a Redfin analysis of MLS home sales data from October through December 2025, referred to as “December” throughout the report. All figures cover rolling three-month periods. Redfin defines luxury homes as those estimated to be in the top 5% of their metro area’s price range, with non-luxury homes falling into the 35th–65th percentile.
