Luxury Market Thrives Amidst Record Low U.S. Home Sales

Despite a 13-year low in overall home sales and an increase in existing home prices, the luxury real estate market remains strong. In the third quarter of 2023, the luxury market grew at three times the rate of the mainstream market, with a record high median price of $1.1 million, up 9 percent from last year. Cash purchases accounted for 42.5 percent of luxury home sales, allowing wealthy buyers to weather high mortgage rates. Affluent Americans continue to spend big due to pandemic savings and resilient housing and stock values.