Luxury Market Sees Largest Dip Since Pandemic Began

In yet another sign of a moderating market, luxury home sales fell 17.8 percent during the three months ending April 30, according to Redfin. That marks the largest dip for high-end homes since the pandemic began.

his report defines luxury homes as those estimated to be in the top 5 percent based on market value, and non luxury homes as those estimated to be in the 35th-65th percentile based on market value.

By comparison, sales of non-luxury homes fell 5.4 percent during the same three month period.

However, context is key: Luxury sales consistently set new highs—and records—throughout much of 2020 and early 2021, surpassing expectations in the seller’s market.

According to Redfin, there are only two instances in the past decade when there were steeper declines: the three months ending June 30, 2020 ( down 23.6 percent) and the three months ending May 31, 2020 ( down 21.6 percent).

The median sale price of luxury homes rose 19.8 percent year-over-year to $1.15 million during the three months ending April 30.