Despite a slight cooling in the overall luxury housing market in the United States in November, prices in high-demand areas continue to rise while prices in other regions are seeing a decline.
In the “Luxury Housing Report” released on December 22nd, Realtor.com stated that the threshold for the top 10% of homes in the luxury housing market had dropped to $1.2 million, a 2.3% decrease from November 2024. Prices for high-end luxury homes decreased by 2.7% year over year to $1.93 million, while prices for ultra-luxury homes dropped by 2.4% to $5.49 million compared to November 2024.
Among the top 10 most expensive markets in the United States, luxury home prices fell in 8 markets, with a drastic 21% year-over-year decline in luxury home prices in the Kahului-Wailuku area of Hawaii. However, during the same period, luxury home prices in the Heber area of Utah saw nearly a 10% increase.
Realtor.com’s chief economist, Anthony Smith, noted in the report that “the dynamics of the luxury housing market are increasingly being driven by local factors rather than national trends.”
He further explained, “Some high-cost metropolitan areas are experiencing strong demand and quick turnover, while in other areas, sales remain slow even at higher price points. Understanding these localized dynamics is crucial for both buyers and sellers in today’s luxury housing market.”
Some of the fastest-moving luxury housing markets in the U.S. include the San Jose-Sunnyvale-Santa Clara area in California, where the top 10% of homes start at $3.79 million. In the Naples-Marco Island area of Florida, luxury homes start at $3.49 million. In the Washington-Arlington-Alexandria, DC-Virginia-Maryland area, luxury homes start at $1.47 million, and in the Boise, Idaho market, luxury homes start at $1.34 million.
The report highlighted that “Naples-Marco Island stood out as a market with a 23.5% increase in the speed of luxury home sales.” Despite a slight decrease in price thresholds compared to 2024, the report indicated that the top 10% of home listings still moved quickly, reflecting strong demand in that region.
According to the report, the median number of days luxury homes stayed on the market in November across the country was 78 days, unchanged from the previous year. The San Jose-Sunnyvale-Santa Clara market in California topped the list with the shortest listing time of 56 days, while luxury homes in Bend, Oregon had the longest listing time at 146 days.
In the Riverside-San Bernardino-Ontario area of California and the Washington, D.C. area, homes had a median sales time ranging from 57 to 58 days. Meanwhile, Heber City in Utah remains one of the slower luxury housing markets, as well as the Kahului-Wailuku area in Hawaii and the Santa Rosa-Petaluma area of California.
Other luxury housing markets with slower transactions include Crestview-Fort Walton Beach-Destin, Florida, with a luxury home price threshold of $2.89 million; the Portland-Vancouver-Hillsboro area of Oregon and Washington, where luxury homes start at $1.29 million; and the San Antonio-New Braunfels area in Texas, where luxury homes start at only $766,548. The report concluded that “overall, the results for November indicate that the characteristics of the luxury housing market are no longer primarily defined by national trends but are more dependent on local pricing, inventory matching, and buyer urgency.”
In Realtor.com’s December report, the Institute for Luxury Home Marketing attributed the decline in sales to a reduction in new listings in October, with detached homes seeing a 33.7% decline and attached or accessory homes experiencing a 29.5% decrease.
The report stated that “seasonal slowdown can explain some of the declines, but seller psychology also played a role. Similar to the pause in August, many homeowners took a wait-and-see approach amid expectations for interest rate decisions.”
While the report indicated that luxury home buyers are less concerned about affordability, higher rates often lead them to be more discerning when selecting properties. This year, affluent buyers have shown a preference for homes offering privacy, sustainability, customization, and health-centric design. Looking ahead to 2026, the institute predicts that the luxury housing market will remain stable.