The luxury housing market is flashing a surprising signal after 29 months of falling prices

The useful part

High-end homes may be out of reach for most people, but the price of luxury is slipping a little lower these days. For the purpose of tracking the upper tiers of the real estate market, Realtor.com defines a luxury home as anything above the 90th percentile of list prices. Listings priced between the 90th and 95th percentile are categorized as entry-level luxury houses, while listings above the 95th percentile fall into the high-end luxury category.

How it works

• "August shows a luxury market in recalibration, with mixed signals across measures," Realtor.com senior economist Anthony Smith said in the report.
• The 99th percentile marks the uppermost tier, defined as ultra-luxury listings that often are rare or custom properties, according to Realtor.com.
• The top 5% of listings dipped 4.2% in August compared to last year, with the top 1% of listings falling 4.6% during the same time period.
• In August 2025, high-end luxury homes in the 95th percentile started at $1,894,230, while the uppermost echelon of luxury homes fell to a still stratospheric $5,163,712.
• With list prices sliding a bit, high-end homes also sold more quickly over the last year.

What to take from it

Entry-level luxury homes sold four days faster than they did last August, though they sat on the market a week longer than they did in July of this year. "Listings are moving faster than a year ago, but price thresholds and the share of million-dollar listings are lower, while the market ha...