U.S. Luxury Market Splits: Price Cuts Ignite Sales While Select Metros See Rapid Price Growth

Rhea-AI Summary

Realtor.com (NWS) reports a bifurcated U.S. luxury housing market for October 2025: the national 90th-percentile luxury threshold eased 2.2% year‑over‑year to $1.22M, while localized metros show divergent trends.

High‑velocity metros (e.g., North Port‑Bradenton‑Sarasota +19.3% YoY to $1.67M; Heber +8.4% YoY) combine price gains with faster sales. Correction markets (e.g., Bridgeport −7.5% luxury price with days on market −42.5% YoY; Kahului −19.9% YoY) show price cuts clearing inventory and shortening time on market.

Positive

• North Port luxury threshold +19.3% YoY to $1.667M
• Heber luxury prices +8.4% YoY with faster sales
• Ultra‑luxury month‑over‑month +1.0% to $5.411M
• Bridgeport days on market −42.5% YoY after price declines

Negative

• National 90th‑percentile luxury threshold −2.2% YoY to $1.224M
• Million‑dollar listing share down 0.4 percentage points YoY
• Kahului luxury threshold −19.9% YoY to $3.791M
• Ultra‑luxury segment −3.3% YoY despite monthly stabilization

Insights

Real Estate Market Strategist

National luxury prices eased to $1.22 million, but sharp metro-level divergence creates localized buying opportunities and faster turnover.

Luxury pricing softened at the national 90th percentile to $1,224,164 (a -2.2% year-over-year decline), while the ultra-luxury 99th percentile showed month-over-month stabilization at $5,411,354. This dual signal means listing-price benchmarks moved lower broadly even as the top-tier held some footing; in practice, sellers in many metros re-priced to clear inventory, while a small group of metros — led by North Port-Bradenton-Sarasota with a 19.3% YoY rise to $1,667,143 — saw both rising entry thresholds and faster sales, indicating concentrated buyer competition in those markets.

Outcomes depend on local inventory and buyer willingness to transact at listing prices. Markets with meaningful price declines, for example Bridgeport with a -7.5% change and a -42.5% drop in days on market, illustrate that price alignment is restoring turnover. Conversely, high-velocity metros such as Heber (8.4%) and Boise (3.1%) show limited supply pressure despite national softening. Watch changes in median days on market and the 90th/99th percentile spreads over the next three months to six months as the clearest short-term indicators of whether these local trends persist into Q1 2026.

• Realtor.com^® data shows national luxury prices ease to $1.22 million, but localized hotspots such as North Port, Fla., surge 20% year over year
• Price corrections in markets such as Bridgeport, Conn., are successfully reigniting buyer activity

AUSTIN, Texas, Nov. 24, 2025 /PRNewswire/ -- The U.S. luxury housing market is showing two distinct personalities, according to the October Realtor.com^® Housing Market Luxury Report. While the national entry point for luxury softened, falling 2.2% year-over-year to $1.22 million, a deeper dive into metro trends reveals a split between local hotbeds of intense competition and markets where price corrections are effectively re-engaging buyers and boosting sales.

The report identifies a group of metros, including Heber, Utah; Boise City, Idaho; and Minneapolis, Minn. where rising prices are coupled with a faster sales pace, signaling strong buyer competition for limited inventory. Conversely, markets such as Bridgeport, Conn; Charleston, S.C., and Atlantic City, N.J. are witnessing significant price drops that are successfully clearing inventory, leading to dramatically shorter days on the market.

"The national average for luxury pricing is overshadowing a more dynamic, city-by-city story," said Danielle Hale, chief economist at Realtor.com^®. "In markets where prices are accelerating and homes are selling faster, buyers are clearly competing. But the most compelling trend this month is the effective price correction in other high-end metros. A market where prices ease and time on market drops sharply—like we see in areas of Connecticut and Charleston—is a sign that a new equilibrium is being established, which bodes well for transaction volume."

National Luxury Statistics Show a Continued Softening in the Luxury Market
The national luxury benchmark, defined by the 90th percentile of listing prices, slipped to $1.22 million in October, marking a 2.2% decline from one year ago. While most luxury tiers followed this trend, the ultra-luxury segment (99th percentile) showed signs of stabilization, rising 1.0% month over month to $5.41 million, even though it remains 3.3% lower than last year.

In terms of market speed, the overall median time on market for typical listings lengthened by five days year-over-year. However, the historical gap between luxury and typical sales times remains tighter than normal, indicating relative strength in luxury buyer demand, with the ultra-luxury tier bucking the trend entirely by selling three days faster year over year.

The High-Velocity Markets: Price Growth Meets Speed
While the national trend is a slowdown, several metros are experiencing robust, accelerating demand. North Port-Bradenton-Sarasota, Fla., led the nation as the clear price leader, surging with a nearly 20% year-over-year increase in its luxury entry point to $1.67 million, demonstrating a strong draw to Gulf Coast Florida for high-net-worth buyers. Beyond raw price growth, only three top-growth metros qualified as highly competitive hotspots, seeing both rising prices and a faster sales pace, a clear signal of intense buyer competition: Heber, Utah, experienced an 8.4% rise in luxury prices coupled with faster sales, followed by Boise City, Idaho (+3.1% YoY price, faster sales) and Minneapolis (+2.7% YoY price, faster sales).

"While North Port-Bradenton-Sarasota, Fla. saw the fastest price growth, places like Heber, Utah, Boise City, ID and Minneapolis are seeing luxury demand that is shrugging off national headwinds," said Anthony Smith, Realtor.com® senior economist. "These are the nation's true high-velocity markets right now. When prices rise year-over-year while homes are simultaneously selling faster, it means buyers are not just willing to meet the price—they are competing for limited inventory. This suggests that for many high-net-worth individuals, location-specific desirability and value are outweighing broader concerns about cost."

Fastest Price Growth Markets

Rank	Area	10% Most Expensive Listings Start at:	Price for top 10% Listings YoY	Median Days on Market top 10%
0	USA	$1,224,164	-2.2 %	4.0 %
1	North Port-Bradenton-Sarasota, Fla.	$1,667,143	19.3 %	10.0 %
2	Heber, Utah	$6,500,000	8.4 %	-10.6 %
3	Tampa-St. Petersburg-Clearwater, Fla	$1,054,960	8.0 %	9.8 %
4	Bend, Ore	$1,896,863	7.1 %	17.8 %
5	Boise City, Idaho	$1,339,526	3.1 %	-14.4 %
6	Minneapolis-St. Paul-Bloomington, Minn - Wis.	$995,404	2.7 %	-10.4 %
7	Dallas-Fort Worth-Arlington, Texas	$990,350	1.9 %	0.8 %
8	Atlanta-Sandy Springs-Roswell, Ga.	$933,364	1.8 %	3.3 %
9	Key West-Key Largo, Fla.	$4,824,500	1.7 %	12.7 %
10	Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$1,592,687	1.2 %	9.9 %

The Correction Markets: Price Alignment Re-ignites Sales
In several high-end metros, price drops are proving successful in re-establishing market balance by aligning seller expectations with buyer demand. Bridgeport, Conn., saw a 7.5% luxury price decline accompanied by an immense 42.5% drop in days on market year-over-year, indicating a highly effective price correction.

Other markets following suit include Charleston, S.C., and Atlantic City, N.J., which saw luxury prices drop over 13% while sales accelerated, signaling that effective price recalibration is reigniting transaction volume in these metros. At the extreme end, Kahului–Wailuku, Hawaii, recorded the most significant year-over-year decline in its luxury threshold, falling nearly 20% to $3.79 million.

Luxury Metros with the Largest Price Declines (YoY)

Rank	Area	10% Most Expensive Listings Start at:	Price for top 10% Listings YoY	Median Days on Market top 10% YoY
0	USA	$1,224,164	-2.2 %	4.0 %
1	Kahului-Wailuku, Hawaii	$3,791,000	-19.9 %	-4.3 %
2	Charleston-North Charleston, S.C.	$1,994,500	-13.1 %	-13.9 %
3	Atlantic City-Hammonton, N.J.	$2,324,950	-13.0 %	-20.6 %
4	Austin-Round Rock-San Marcos, Texas	$1,332,650	-11.0 %	-5.2 %
5	Port St. Lucie, Fla.	$1,011,473	-9.0 %	21.4 %
6	Cape Coral-Fort Myers, Fla.	$1,057,360	-7.8 %	3.7 %
7	New York-Newark-Jersey City, N.Y.-N.J.	$3,017,194	-7.7 %	-8.9 %
8	Bridgeport-Stamford-Danbury, Conn.	$4,249,600	-7.5 %	-42.5 %
9	Oxnard-Thousand Oaks-Ventura, Calif.	$2,999,999	-6.5 %	15.9 %
10	Los Angeles-Long Beach-Anaheim, Calif.	$3,996,297	-6.3 %	4.0 %

(Among metropolitan and micropolitan areas that averaged at least 500 million-dollar listings over the 12 months through October 2025)

National Luxury Market Overview

Pricing	October 2025	Monthly Change	YoY Change
Luxury Threshold 90th Percentile	$1,224,164	-1.6 %	-2.2 %
High-End Luxury Threshold 95th Percentile	$1,954,598	0.1 %	-2.1 %
Ultra Luxury Threshold 99th Percentile	$5,411,354	1.0 %	-3.3 %
Million-Dollar Listing Share	12.8 %	-0.2pp	-0.4pp

Top 10 Luxury Markets by 90th Percentile Listing Price

Rank	Area	Metro/Micro	10% Most Expensive Listings Start at:	10% Most Expensive YoY	Average Annual Million- Dollar Listing Count	Multiple to Median Listing Price
1	Heber, Utah	Micro	$6,500,000	8.4 %	928	4.5
2	Key West-Key Largo, Fla.	Micro	$4,824,500	1.7 %	718	3.8
3	Bridgeport-Stamford-Danbury, Conn.	Metro	$4,249,600	-7.5 %	614	5.3
4	Los Angeles-Long Beach-Anaheim, Calif.	Metro	$3,996,297	-6.3 %	9,795	3.6
5	Kahului-Wailuku, Hawaii	Metro	$3,791,000	-19.9 %	677	3.4
6	San Jose-Sunnyvale-Santa Clara, Calif.	Metro	$3,750,400	-6.2 %	1,095	2.7
7	Naples-Marco Island, Fla.	Metro	$3,443,693	-2.1 %	1,946	4.9
8	New York-Newark-Jersey City, N.Y.-N.J.	Metro	$3,017,194	-7.7 %	12,310	4.0
9	Oxnard-Thousand Oaks-Ventura, Calif.	Metro	$2,999,999	-6.5 %	697	3.0
10	San Diego-Chula Vista-Carlsbad, Calif.	Metro	$2,894,369	-2.8 %	2,336	3.1

(Among metropolitan and micropolitan areas that averaged at least 500 million-dollar listings over the 12 months through October 2025)

Methodology
All data in this report are sourced from Realtor.com® listing trends as of October 2025, reflecting active inventory of existing homes, including single-family residences, condos, townhomes, row homes, and co-ops. Listings reflect only those posted on MLS platforms that provide listing feeds to Realtor.com®. New-construction listings are excluded unless actively listed on participating MLSs.

Luxury segmentation is based on market-specific price percentiles, with the 90th percentile representing entry-level luxury, the 95th percentile marking high-end luxury, and the 99th percentile indicating ultraluxury. All calculations are based on listing prices, not final sales prices.

Metropolitan and micropolitan areas are defined using the Office of Management and Budget's OMB-2023 delineations, with Claritas 2025 household estimates used for relative comparisons. Where appropriate, we limited analysis to metros or micros with a minimum threshold of active million-dollar listings on average over the past year to ensure meaningful comparisons. Historical listing trend data extends to July 2016, but year-over-year comparisons in this report use October 2024 as the baseline.

About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Emily Do, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/us-luxury-market-splits-price-cuts-ignite-sales-while-select-metros-see-rapid-price-growth-302623585.html

SOURCE Realtor.com

FAQ

What did Realtor.com report for the national luxury threshold in October 2025 for NWS?

The national 90th‑percentile luxury threshold was $1.224M, down 2.2% YoY.

Which metro had the fastest luxury price growth in October 2025 (NWS)?

North Port‑Bradenton‑Sarasota, Fla. led with luxury prices up 19.3% YoY to $1.667M.

Which metros show price declines that shortened days on market in October 2025?

Bridgeport, Conn. saw luxury prices −7.5% YoY and days on market −42.5%; Charleston and Atlantic City also showed large declines with faster sales.

How did the ultra‑luxury (99th percentile) perform in October 2025?

The ultra‑luxury threshold rose 1.0% month‑over‑month to $5.411M but remained 3.3% lower YoY.

What defines a high‑velocity luxury market in the October 2025 report?

Markets with year‑over‑year price increases paired with faster median days on market, signaling buyer competition.

How might NWS investors interpret the October 2025 luxury split?

A mixed signal: national softening versus localized strength or effective corrections, indicating uneven risk and opportunity across metros.