Luxury Housing Prices Extend Cooling Streak to 30 Months

The luxury tier continues to retreat from its May 2023 peak of roughly $1.4 million, with the entry threshold now sitting 14.1% lower. Data from the September Realtor.com Luxury Housing Report indicates that price suppression is uniform across the top end of the market, with the 95th percentile falling 3.5% and the ultra-luxury 99th percentile dropping 5.3% compared to last year. While prices are lower, velocity has picked up; homes at the 90th percentile spent a median of 76 days on the market, three days fewer than in September 2025.

Geography remains the primary differentiator for value. Los Angeles currently commands the highest entry point at $3.95 million, pulling away from Kahului-Wailuku, Hawaii. Meanwhile, the correlation between market price and public school quality—a frequent concern for luxury buyers—remains inconsistent. While Naples, Florida, boasts both high school ratings and price growth, other expensive markets like Kahului-Wailuku rank near the bottom for school quality. According to Anthony Smith, senior economist at Realtor.com, while local factors like education influence specific markets, they are not a reliable shield against the broader national trend of price correction.