The luxury home market is generally defined as the top 5-percent of the most valuable homes in any given region. The range includes homes priced just under $850,000 in Buffalo to homes costing almost $6 million in San Jose. The luxury home market, like the overall housing market, has slowed recently, with overall activity dropping due to economic uncertainty, elevated costs, and higher mortgage rates. But while activity is down, home prices have continued to increase. In fact, according to one new analysis, the luxury market is seeing home price increases nearly double those of the overall market. The data shows luxury home values up 2.7 percent from last year, while the broader market increased only 1.4 percent. But while luxury homes are seeing values grow at a faster pace, regional results still mirror those of the overall housing market, with midwestern cities seeing the fastest growth and southern cities seeing the slowest. The hottest luxury home markets are now in Cincinnati, Columbus, Chicago, Cleveland, and Las Vegas. Nationally, the typical luxury home is worth about $1.8 million. (source)
