#United States #Austin #Realtor.com #Luxury Homes #U.S. Housing Market

The Current State of the U.S. Luxury Home Market

As of late 2025, the luxury home market in the United States is witnessing a notable transformation, characterized by fluctuating prices and varying selling speeds across different regions. According to the November 2025 report from Realtor.com®, the national luxury price threshold has experienced a decline, with the 90th percentile benchmark hovering around $1.20 million, marking a 2.3% dip compared to the previous year.

Interestingly, while the overall market shows a tendency toward price softening, segments categorized as ultraluxury are exhibiting some monthly growth. This paints a complex picture where certain metropolitan areas showcase rapid turnover in luxury listings, contrasting sharply with others that register slower sales.

The nuances of the luxury real estate landscape are further underscored by the performance of the nation’s priciest markets. Notably, eight of the ten most expensive regions observed annual price decreases. Kahului–Wailuku in Hawaii leads the decline with a staggering 21% year-over-year drop in luxury prices. Conversely, Heber, Utah, has reported a nearly 10% growth in its luxury home market, while areas like Key West in Florida have maintained stable pricing, exemplifying the divergent trends shaping this segment.

Antony Smith, a senior economist at Realtor.com®, emphasizes that the dynamics of luxury homes are increasingly influenced by local factors rather than broad national trends. This notion is critical for potential buyers and sellers to grasp as they navigate what can often feel like a fragmented market. In certain high-cost areas, brisk demand translates to fast turnover times, while other locales endure prolonged sales periods.

An Overview of National Luxury Pricing

In terms of stats, November saw luxury homes maintain a median listing time of 78 days on the market, consistent with the previous year. However, variations can be striking from one market to another. For instance, the San Jose–Sunnyvale–Santa Clara area recorded an impressive median selling time of just 56 days, while in stark contrast, Bend, Oregon, saw luxury listings linger considerably longer at 146 days.

A standout market, Naples–Marco Island, Florida, exhibited remarkable resilience, with luxury homes selling 23.5% faster year-over-year, despite a slight decline in the luxury price threshold to $3.50 million. This accelerated pace reflects not only strong consumer demand but also post-hurricane market shifts that have made this scenic locale a hotspot for high-end buyers.

Fast and Slow Luxury Markets

Examining additional rapid markets reveals that Riverside–San Bernardino-Ontario, California, and the Washington, D.C. area enjoy median selling times of 57 to 58 days, reinforcing the notion that localized demand is key. Yet, not all areas are experiencing the same level of enthusiasm. Slow-moving markets include Heber, Kahului–Wailuku, and Santa Rosa–Petaluma, California—each contending with market conditions that can hinder sales in even the most sought-after communities.

Overall, the luxury sector’s November results shed light on an increasingly personalized market landscape, one where success hinges on understanding local pricing strategies, inventory alignment, and buyer insights. The disparities observed in turnover speed and pricing trends will require sellers to carefully strategize their listings while buyers must stay attuned to regional movements to secure desirable properties.

Market Rankings

In terms of ranking markets based on the 90th percentile listing price, Heber, Utah takes the lead at $6,637,500, followed closely by Key West, Florida, at $5,000,000. The data indicates that affluent buyers are gravitating towards certain micro-markets while others lag behind.

In conclusion, as the luxury home market evolves, those involved must remain vigilant and adaptable to local trends and economic indicators. Understanding the nuances that drive pricing and sales in this sector will be imperative for making informed decisions in the months to come.