In a sign that the nation’s home buying market is clearly vibrant for at least one important segment of the industry, a new report is showing that the median luxury home price has now reached the $1.37 million mark.
According to the real estate brokerage site Redfin, that March to May figure represents a 4.7% gain over where the market was exactly a year ago. Even more, the 4.7% jump was more than triple the 1.5% increase seen in the non-luxury market.
According to Redfin, high-end homebuyers have become more active because “they’re less sensitive to the affordability pressures and financial instability facing many Americans today.”
Pending sales of luxury homes, at the same time, are up 5.2% over last year at this same time, representing the largest such gain since December of 2024.
The latest figures come as a group called the Institute for Luxury Home Marketing in its July review has noted that the “luxury market has spent the past six months demonstrating steady sales growth, stable pricing, and increasing competition for desirable properties.”
The cities that have seen the highest median sales prices include San Francisco, where the average this spring reached $2.7 million; Park City, Utah, at $2.3 million; and Naples, Florida, at $2.2 million.
The luxury home sales boom particularly stands out given the more sluggish figures seen in the median price market, reports Redfin, where the “economic uncertainty stemming from the back-and-forth on the Iran war, inflation, and the possibility of the Fed hiking interest rates is making some prospective buyers think twice about making a huge purchase.”
July 16, 2026
By Garry Boulard
Image courtesy of Unsplash
