Luxury Home Sale Prices Rose 5.5% in October

Seattle, WA, November 21, 2025-- U.S. luxury home sale prices rose 5.5% year over year to a median $1.28 million, a record high for the month of October, according to Redfin. 

Luxury home prices are growing roughly three times faster than non-luxury prices, which rose 1.8% to a median of $373,249.

That’s according to an analysis of home sales from August through October 2025. Redfin defines luxury homes as those estimated to be in the top 5% of their metro area’s price range, while non-luxury homes fall into the middle 35th–65th percentile. All figures are based on rolling three-month periods and are subject to revision.

Price growth at the high end outpaced the middle of the market again in October, a trend that has persisted for much of the past two years. The difference in price growth between luxury and non-luxury homes underscores how differently wealthy buyers are behaving compared with typical move-up or first-time buyers.

“Luxury buyers are still able to move forward in ways that many typical buyers can’t right now, whether that’s because they’re paying in cash, benefiting from stock-market gains, or taking out smaller loans,” said Redfin senior economist Sheharyar Bokhari. “Those advantages make them less sensitive to high mortgage rates, which helps keep demand at the top of the market steadier. In contrast, a lot of middle-income buyers are holding off until monthly payments come down or their financial outlook improves.”

Closed sales in both the luxury and non-luxury segments rose from a year earlier, but remain close to their lowest October levels over the past decade. Luxury home sales were up 2.9% year over year and non-luxury sales rose 0.7%, but both increases are off historically low baselines as higher mortgage rates and elevated prices continue to suppress overall activity.