Redfin defines luxury homes as those in the top 5% of local prices.
Luxury market cools as rates stay high
Many affluent borrowers still faced financing and confidence hurdles at the end of the first quarter.
“Many would-be homebuyers, whether they’re high-end buyers or not, are sitting on the sidelines due to 6%-plus mortgage rates and widespread economic uncertainty, including the back-and-forth on the Iran war,” the report said.
Redfin’s national snapshot showed inventory inching higher: active luxury listings rose 1.5% year over year, roughly half the 3.1% increase for non‑luxury homes, while luxury new listings dipped 1.3%.
San Francisco stands apart in the AI boom
Despite that, San Francisco’s luxury housing market is booming. The number of luxury homes sold in the city “jumped 22.2% year over year in March, the fifth straight month of double-digit increases and the third-biggest increase among the 50 most populous U.S. metros.”
