Luxury home prices are surging, thanks to an influx of wealthy buyers wielding cash, according to a new report from Redfin. A typical U.S. luxury home sold for a record $1.17 million in the fourth quarter of 2023, up 8.8% from the same period a year earlier. The Redfin report defines luxury homes as those estimated to be in the top 5% of their respective metro area based on market value.
Redfin, a real estate brokerage, also showed that although high mortgage rates are having a chilling effect on the rest of the market, luxury home prices are rising because so many affluent buyers can buy homes in cash. In fact, nearly half, or 46.5%, of the fourth quarter’s luxury purchases were made in cash. That’s up from 40% a year earlier.
