With just a few weeks left until the new year, analysts are looking back on the record setting year that was 2021. In particular, it was a very strong year for the luxury home market.
According to Redfin, the typical luxury home sold for 25.8 percent more in 2021 than the year before.
The median sale price of U.S. luxury homes jumped to $1,025,000 in the second quarter of 2021, marking record price growth per Redfin analytics. That’s compared to 16 percent year-over-year growth for mid-priced homes and 13.2 percent growth for affordable homes.
While “affordable” homes in California easily surpass the $1 million mark, the record is notable given the stat represents all of the U.S.
Price growth for luxury homes outpaced that of more affordable homes, per Redfin, partly due to affluent Americans reaping the benefits of the year’s strong stock market and gains in home equity.