The luxury housing boom is unraveling. These are the only markets still getting more expensive

Luxury home prices have largely declined from their pandemic-era peaks, with most markets failing to surpass previous highs, according to a new report from Realtor.com. Only Minneapolis-St. Paul and Boise have seen their luxury housing markets exceed their pandemic price points, with Minneapolis-St. Paul luxury homes now 5% above their peak and Boise luxury homes 4% higher. Boise experienced an 87% surge in luxury home prices during the pandemic boom, while Minneapolis-St. Paul saw a 17.6% increase. Other markets, such as Boston and Bend, Oregon, have retained approximately 89% of their pandemic-era price gains and have not yet reached their previous peaks. Realtor.com Senior Economist Anthony Smith noted that Boston's luxury market is supported by demand from wealthy individuals in financial services and life sciences, while Bend attracts affluent buyers with its outdoor lifestyle. Smith also stated that markets retaining their gains have fundamental buyer appeal beyond pandemic-driven factors like low mortgage rates and remote work. In contrast, the Bay Area has experienced a significant correction, with its luxury home price threshold falling nearly $700,000 below its pre-pandemic baseline.