The trend of Ultraluxury homes, priced at over $5 million, tells two different stories. On one hand, they rose month-over-month in November, but on the other, they fell year-over-year. Also, the national share of multi-million-dollar homes dropped by 0.4%. These are the findings of Realtor.com’s December report on trends in the luxury home market.
Homes in the top 10% price range fall into the 90th percentile, representing entry-level luxury, with starting prices at almost $1.2 million, a 2.3% price drop year-over-year. Homes are considered high-end luxury if they fall into the 95th percentile, starting at $1.93 million, down 2.7% year over year.
Ultraluxury defines homes in the 99th percentile, often rare or custom properties, starting at $5.49 million, down 2.4% year over year. Plus, eight of the nation’s top 10 markets saw prices fall. Kahului–Wailuku, HI, plunged by 21.0% YoY and was the worst affected.
“The national benchmark for luxury homes slipped by 2.0% to $1.20 million in November, leaving prices 2.3% lower than a year ago. Similar year-over-year declines were observed across all luxury tiers,” Realtor stated.
Among its 858 luxury listings, Heber, UT boasted the home with the nation’s highest list price, at $6.64 million. The city also had the highest share of luxury listings – accounting for 9.9% of the total. Runner-up Key West-Key Largo, with a $5 million starting price, was the only top-10 metro not to experience a price drop.
Others in the top 10 recorded lower prices, including Los Angeles (price $4 million), Bridgeport ($4 million) San Jose ($3.8 million), Kahului-Wailuku, HI ($3.66 million), Santa Rosa ($3.5 million), Naples ($3.5 million), Oxnard ($3 million) and New York ($3 million). They suffered price declines ranging from 3.1% in Naples to the 21% recorded in Kahului–Wailuku, which took 119 days to sell.
“Whether driven by inventory composition, pricing at the top end, or shifts in buyer activity specific to each region, the variation suggests that the nation’s highest-priced markets are not moving in a unified direction,” the report stated.
Similarly, there is not necessarily a correlation between the highest price and the speed at which it sells. The median number of days a luxury home spent on the market was unchanged at 78 days in November. However, luxury homes in San Jose sold in a median of 56 days, at a 5.1% discount. Homes in Naples sold 23.5% faster year-over-year, though at 3.1% below the asking price.
The slowest-moving luxury markets were Bend, OR, staying 146 days on the market. In Heber, UT – where the nation’s highest luxury home price was achieved – it took 136 days to sell.
“This reveals a luxury landscape defined less by cost and more by buyer urgency, inventory alignment, and local market momentum,” the report noted.
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