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Redfin tracked home sales in more than 1,000 cities across the U.S. (not including
Sales of homes priced at or above
The combination of rising inventory and declining prices and sales suggests that demand for luxury homes is down from last year. While the stock market's shaky performance over the past six months could play a role in hindering demand for high-priced homes, tax reform measures that lowered the limits on deductions for mortgage interest and state and local taxes are largely to blame.
"Because homeowners can't deduct as much mortgage interest as they used to be able to, the calculus has changed when it comes to buying a home, especially an expensive one," said Redfin chief economist
Despite the overall decline, luxury home prices fell in just one-third of cities in this analysis. Below are the major cities in the metro areas where most of the luxury sales in our analysis take place:
City |
Average Luxury Sale Price in Q1 2019 |
YoY Change in Luxury Sale Price |
YoY Change in Sales of $2 Million + Homes |
Boston, MA |
$3,219,000 |
-22.4% |
-10% |
Newport Beach, CA |
$7,910,000 |
-21.8% |
-33.3% |
Miami, FL |
$1,627,000 |
-19.3% |
-12.9% |
San Jose, CA |
$2,348,000 |
-2.7% |
-6.7% |
San Diego, CA |
$2,516,000 |
-1.4% |
-8.3% |
San Francisco, CA |
$4,936,000 |
-0.3% |
-10% |
Los Angeles, CA |
$4,773,000 |
0.6% |
-17.9% |
Naples, FL |
$4,159,000 |
5.3% |
-9.1% |
Seattle, WA |
$2,307,000 |
6.4% |
0% |
West Palm Beach, FL |
$2,851,000 |
89.6% |
-23.1% |
Among those 10 luxury-market driving areas, the city of
Nine of the 10 markets listed above drove the national sales drop in the first quarter, with
Biggest price gains
Although luxury prices are down nationwide, some cities experienced significant increases. For the fourth quarter in a row,
Some less popular luxury markets also experienced price increases. In
"Home prices in
To read the full luxury report, including the methodology and a list of the most expensive homes that sold in the first quarter of 2019, please visit: https://www.redfin.com/blog/luxury-home-prices-sales-decline.
Redfin also issued a blog post showcasing homes across the country currently listed near the average luxury home price of
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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SOURCE Redfin
Redfin Journalist Services: Erin Osgood, 206-588-6863, press@redfin.com