L
uxury home prices hit a new October 2025 peak, rising 5.5 % year‑over‑year to a median of $1.28 million, while non‑luxury homes climbed only 1.8 % to $373,249, per Redfin’s latest data. The report, covering August‑October sales, shows a widening gap between the top 5 % of local price tiers (luxury) and the 35th‑65th percentiles (non‑luxury). All figures are rolling three‑month averages.
**Market performance**
* Luxury prices have outpaced the middle tier for almost two years. Economists attribute this to wealthier buyers’ reduced sensitivity to high mortgage rates, thanks to cash purchases, stock‑market gains, or smaller loans.
* Redfin senior economist Sheharyar Bokhari notes that these advantages keep demand steadier at the top of the market.
**Sales activity**
* Closed sales rose in both segments, yet October 2025 remains near a decade low.
* Luxury sales up 2.9 % YoY; non‑luxury sales up 0.7 %.
* Pending sales increased 2.1 % for luxury and 1.4 % for non‑luxury.
* Redfin Premier agent Jonathan Buch observes that high‑end homes are more insulated from affordability pressures than sub‑$800k properties.
**Inventory trends**
* Luxury listings grew 6.4 % YoY to the highest October level in five years.
* Non‑luxury inventory jumped 9.5 % to the tallest level since 2019.
* Both categories still trail pre‑2020 supply.
* New luxury listings +2.3 %; new non‑luxury listings –1.7 %.
**Time on market**
* Luxury homes spent 58 days on the market; non‑luxury 45 days—six days longer than a year ago.
* Only 26.7 % of luxury listings entered contract within two weeks (down 0.6 pp); non‑luxury fell to 31.3 % (down 2.9 pp).
**Metro highlights (50 largest U.S. metros)**
* **Price gains**: Warren, MI (+14.9 % to $1.09 M); Milwaukee, WI (+13.5 % to $1.14 M); San Jose, CA (+11.9 % to $5.60 M).
* **Price declines**: Tampa, FL (–2.9 % to $1.44 M); Oakland, CA (–2.4 % to $2.93 M).
* **Sales increases**: Nashville, TN (+20.3 %); Kansas City, MO (+16.5 %); Riverside, CA (+16.4 %).
* **Sales drops**: Philadelphia (–15.4 %); Detroit (–14.5 %); Nassau County, NY (–8.7 %).
* **Active listings growth**: Tampa (+36.5 %); Nashville (+17.1 %); Baltimore (+16.4 %).
* **Listings declines**: Philadelphia (–18.3 %); San Jose (–18.3 %); Chicago (–13.1 %).
* **New listings**: Tampa (+31.6 %); Kansas City (+25.2 %); Washington, D.C. (+12.4 %).
* **New listings declines**: Milwaukee (–24.9 %); Anaheim, CA (–19.3 %); Nassau County, NY (–15.0 %).
* **Speed of sales**: Fastest – San Jose (12 days), Oakland (17 days), Seattle (21 days).
* **Slowest – Miami (139 days), West Palm Beach (120 days), Fort Lauderdale (113 days).
