Luxury Home Prices Are Now Outpacing the Annual Price Growth of Typical Homes
In the luxury housing market, home prices have grown by 3.9% year-over-year, compared with the 3.2% increase seen in the rest of the housing market
Aug. 1, 2024
Image: pics721 / stock.adobe.com
The luxury housing market is seeing higher rates of price growth than the typical housing market.
For the past several years, the luxury housing market has seen home prices remain relatively stable, but that's changing. According to housing market platform Zillow, luxury home values have seen more annual growth than typical home values for five consecutive months. Luxury home prices across the U.S. are 3.9% higher than they were a year ago, compared with typical home prices, which have increased by just 3.2% year-over-year. Currently, the average luxury home nationwide is worth about $1.62 million, but that varies based on location. In San Jose, Calif., luxury homes are valued at $5.3 million, while in Buffalo, N.Y., a luxury home can be purchased for $750,000.
Luxury home inventory has been slower to recover than inventory overall, helping keep prices climbing. Inventory in the luxury segment is up 15.7% year over year and is 46.9% below pre-pandemic norms. By comparison, total inventory is 22.7% higher than last year and about 32.6% below pre-pandemic averages.
