Luxury Housing Prices Decline for 29 Consecutive Months

The entry point for purchasing a luxury home decreased to $1,200,005 in August, according to a new report from Realtor.com. This figure represents a 4% decline from July 2025 and signifies the 29th consecutive month of falling luxury home prices. Realtor.com defines a luxury home as any property listed above the 90th percentile of market prices. Listings falling within the 90th to 95th percentile are classified as entry-level luxury homes, while those above the 95th percentile are considered high-end luxury. The uppermost tier, the 99th percentile, denotes ultra-luxury listings, often characterized as rare or custom-built properties.

In August 2025, the top 5% of luxury listings experienced a 4.2% price decrease compared to the previous year. The top 1% of listings saw an even more significant drop of 4.6% during the same period. Specifically, high-end luxury homes at the 95th percentile had a starting price of $1,894,230 in August 2025. The ultra-luxury segment, at the 99th percentile, saw its price threshold fall to $5,163,712. Despite the overall price slide, high-end homes have been selling more rapidly over the past year. Entry-level luxury homes sold an average of four days faster in August 2025 compared to August 2024, although they remained on the market for approximately one week longer than in July 2025.

Realtor.com senior economist Anthony Smith characterized the August luxury market as being in a state of "recalibration, with mixed signals across measures." He noted that while listings are moving faster year-over-year, the price thresholds and the proportion of million-dollar listings have decreased. Smith also observed that the market has slowed down from its midsummer pace, describing the situation as "adjusting in several directions at once." The report highlights that the cost of luxury real estate is not uniform across all locations. For instance, Los Angeles remains the most expensive market for entry into the top 10% of luxury homes, though specific figures for this comparison were not detailed in the provided text. The data suggests a nuanced market shift, with declining price ceilings and increased sales velocity for certain segments of the high-end real estate sector, indicating a broader market adjustment rather than a uniform trend across all luxury property types and locations.