A new report reveals that luxury home prices declined in eight of the 10 most expensive U.S. markets in November, with dramatic drops in Hawaii and Utah defying national trends as regional demand reshapes high-end real estate.

By yourNEWS Media Newsroom

NEW YORK — The luxury housing market in the United States is splintering, with prices falling in eight of the nation’s 10 most expensive markets in November, according to a new report from Realtor.com. The shift underscores how local factors—rather than broad national trends—are now driving dynamics in high-end real estate.

The 90th percentile threshold for luxury housing—the price point marking the top 10% of the market—dropped to $1.20 million, a 2.3% decline from November 2024. High-end luxury thresholds fell 2.7% year-over-year to $1.93 million, while ultra-luxury pricing dipped 2.4% to $5.49 million.

The most dramatic decline occurred in Kahului-Wailuku, Hawaii, where luxury home prices plunged 21% compared to the previous year. Yet, in Heber, Utah, prices surged by nearly 10%, illustrating the stark contrast in regional performance.

“Luxury home dynamics are increasingly driven by local factors rather than national trends,” said Anthony Smith, senior economist at Realtor.com. “Some high-cost metros are experiencing brisk demand and fast turnover, while others face slower sales even at elevated price points. Understanding these local dynamics is key for both buyers and sellers in today’s luxury market.”

Fast-Moving vs. Stagnant Markets

Some of the fastest-moving luxury markets include:

  • San Jose-Sunnyvale-Santa Clara, California, where the top 10% of listings start at $3.79 million.
  • Naples-Marco Island, Florida, where luxury homes begin at $3.49 million and are selling 23.5% faster than last year.
  • Washington-Arlington-Alexandria, D.C.-Virginia-Maryland, with luxury listings starting at $1.47 million.
  • Boise, Idaho, where the luxury threshold is $1.34 million.

Nationally, luxury homes spent a median of 78 days on the market in November, unchanged from 2024. The San Jose-Sunnyvale-Santa Clara area recorded the fastest sales, with homes moving in just 56 days, while Bend, Oregon, had the slowest turnover at 146 days.

Other sluggish markets included:

  • Crestview-Fort Walton Beach-Destin, Florida (luxury threshold: $2.89 million).
  • Portland-Vancouver-Hillsboro, Oregon-Washington (luxury threshold: $1.29 million).
  • San Antonio-New Braunfels, Texas (luxury threshold: $766,548).

Why the Slowdown?

A December report from the Institute for Luxury Home Marketing attributed the decline in sales to a 33.7% drop in new single-family home listings and a 29.5% decrease in attached properties in October.

“Seasonal slowdown explains part of the decline, but seller psychology also played a role,” the report noted. Many homeowners adopted a “wait-and-see stance” amid uncertainty over interest-rate decisions.

While luxury buyers remain less sensitive to affordability concerns, higher rates have made them more selective, prioritizing properties with privacy, sustainability, customization, and wellness-centric design. The institute predicts the luxury market will remain stable in 2026, though regional disparities are expected to persist.

“Overall, November’s results illustrate a luxury market defined less by national trends than by localized pricing, inventory alignment, and buyer urgency,” the Realtor.com report concluded.

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