The report shows that in metro areas such as Atlanta, Denver and Houston, luxury homes priced between $1 million and $2 million often offer more than 4,000 square feet – roughly 50% larger than the national average of 2,994 square feet.
Coastal markets, including Honolulu, San Jose and San Francisco, remain limited, with typical listings in that price range offering 1,651, 1,688 and 1,855 square feet, respectively.
“Luxury buyers are increasingly looking for value – and that doesn’t always mean a lower price tag, but rather more home for the money,” said Anthony Smith, senior economist at Realtor.com. “In markets like Honolulu or the Bay Area, buyers pay for proximity, views and prestige – not square footage.
“By contrast, in inland metro areas in the South and Midwest, luxury buyers can often find larger, newer homes with land and amenities that would cost twice or three times as much in coastal metro cities with more supply constraints.”
Luxury benchmark down slightly
The national luxury benchmark, defined as the 90th percentile of listing prices, fell 0.5% month-on-month and 2.4% year-over-year to $1.24 million, the report said.
Data also shows the upper tier of the market moderating, with the 95th percentile down 1.2% to $1.95 million and the ultra-luxury segment at the 99th percentile down 0.2% to $5.41 million.
Danielle Hale, chief economist at Realtor.com, said the modest softening reflects a broader market recalibration.
“We are seeing a healthy rebalancing in the luxury housing market after years of volatility,” she said. “The modest decline in luxury prices reflects a market where buyers and sellers are adjusting their expectations to reflect broader economic conditions. In many cases, demand remains strong for well-priced homes, especially those that offer distinctive space, quality or location.”
Sales of luxury homes remain subdued
Luxury homes also continue to sell slower than the overall market.
In September, homes in the 90th percentile spent an average of 79 days on the market, one day longer than August and five days longer than a year ago.
Ultra-luxury listings in the top 1% took up to 50 days longer to sell, consistent with historical norms given the selective nature of high-end transactions.
Santa Barbara, California, remains the most expensive luxury market in the country – with the top 10% of listings starting at $8.95 million.
Heber, Utah, is in second place, supported by demand from resorts and limited inventory.
There were some minor shifts in the remaining top 10 markets, with Rifle, Colorado, dropping from the list after failing to meet the $500,000 minimum for inclusion.
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