In the past few months, the high-end real estate market in the United States has been active, with the median price of luxury homes on the rise. Particularly in the hot California housing market, the volume of homes priced above $2 million has seen the largest increase, driving up overall housing prices.
According to a report from the U.S. real estate platform Redfin on Tuesday (May 26), in the three months ending April 30, the median sales price of luxury homes in the U.S. increased by 3.6% to $1.39 million, more than doubling the growth rate of non-luxury home prices.
At the same time, the number of pending sales in the market increased by 4.3% year-over-year, marking the largest increase since January 2025.
Stacey Bryant, a senior real estate agent at Redfin, pointed out that compared to ordinary home buyers, luxury home buyers are usually not as affected by fluctuations in mortgage interest rates, which may be one reason for the stability of the luxury home market.
“They have the willingness to buy, as well as the financial capability. Whether the interest rate is 6.3% or 6.1%, it doesn’t make much of a substantive difference for these luxury home buyers,” Bryant said.
Redfin’s analysis found that the luxury home market in San Francisco, California, is the most popular among all metropolitan areas in the U.S.: in April, the volume of pending luxury home sales surged by 48.4% year-over-year, marking the largest increase since June 2021. The San Francisco housing market is showing strong growth driven by the artificial intelligence (AI) industry.
The simultaneous increase in luxury home prices and demand has also driven the overall trend in housing prices. The latest report from the California Association of Realtors (C.A.R.) indicates that the statewide median home price in April was close to $915,000, reaching a new historical high and surpassing $900,000 for the first time since May 2025.
The most expensive home prices in California are found in Mono County, an inland area, where the median home price in April reached $2.55 million, marking a staggering 142.9% annual increase compared to March ($1.51 million).
Following closely behind are San Mateo County in Northern California with an average home price of $2.3 million in April, Santa Clara County at $2.1 million, and San Francisco at around $2.13 million.
In Southern California, the median home price in Orange County is $1.47 million, Los Angeles County at $845,000, and San Diego around $1.074 million.
The continuous rise in home prices is making it increasingly difficult for more people to afford homes. Jordan Levine, Vice President and Chief Economist at C.A.R., stated: “Housing affordability has always been a serious challenge in California, especially under the conditions of tight supply and intense competition in many markets, which have led to a new record high median price.”
Below is a summary of the luxury home market in various metropolitan areas in the U.S. as of April 30, as compiled by Redfin.
1) Prices
The largest price increases for luxury homes were seen in Tampa, Florida (17.1%), Las Vegas (16.1%), and Kansas City, Missouri (15.2%). Only four metropolitan areas experienced price declines, including Detroit (-2.4%), Cincinnati (-1.6%), New York (-0.6%), and Denver (-0.6%).
2) Pending Sales Volume
The largest increase in pending luxury home sales was in San Francisco (48.4%), Tampa, Florida (35.8%), and West Palm Beach, Florida (15.8%). The biggest declines were in Nassau County, New York (-27%), Minneapolis (-15.9%), and Seattle (-14.4%).
3) Sold Volume
The largest increase in luxury home sales volume was seen in San Francisco (43.2%), Tampa, Florida (42%), and Kansas City, Missouri (24.8%). The biggest declines were in Cincinnati (-22.8%), Seattle (-20.8%), and Anaheim, California (-19.9%).
This information sheds light on the recent trends in the luxury real estate market in the United States.