Luxury Home Market Trends: Are There Price Reductions Nationwide?

For this article, we’ll be focusing on mid-tier single-family luxury homes between $900K and $1.4 million, and ultra-luxury homes beginning at $5,000,000.

Everyone wants more for their money, including luxury homebuyers, but surprisingly, it’s not high prices or lack of homes to choose from that are holding them back. Most luxury home markets are in a seller’s market or balanced market, indicating high to normal demand, but many of the wealthy are hesitant to follow through with home purchases due to geopolitical anxiety and economic uncertainty.

According to the Luxury Market Report May 2025 by the Institute of Luxury Home Marketing, the median luxury list price was $1,399,900 in April 2025, the same as it was in April 2024, yet the median sold price was $1,350,000, $100,000 more than last year. Days on market are rising and the number of available listings has increased over 25% year-over-year. Yet sellers are not reducing their prices so much as they are accepting lower offers, as indicated by the list-to-sales-price ratio—99.15% a year ago, down to 98.63% in April 2025. With such negligible differences, it seems the mid-tier luxury home market is doing well, but not everywhere.

Consider the difference between Austin, Texas, and Nashville, Tennessee—both popular work and tourist destinations as well as music meccas. The median luxury home price in Austin was $2,295,000, but the median sold price was $1,450,000 in April, making it a buyer’s market (soft market) with a sales ratio (speed of sales) of 10.6% and 20 days on market, which is still quick compared to lower priced homes. Nashville’s median luxury list price was $1,750,000 with a median sold price of $1,400,000—a seller’s market with a sales ratio of 23.8% and only 8 days on market.  

In the ultra-luxury home market, the Concierge Auctions’ 2025 Luxury Homes Index, an annual report that examines the marketing and sales of properties valued at $5,000,000 or more, states that the largest factor in determining the price an ultra-luxury property will sell for is the number of days that it has been marketed for sale. Researchers found that in 2024, ultra-luxury homes in the top 56 U.S. luxury markets took 400% longer to sell than the median-priced home: 319 days to sell compared to 60 days. Many of these homes take years to sell.

Overall, ultra-luxury homes sell slowly, and they depreciate in value for every day they’re on the market. Over half (54%) of ultra-luxury homes sold in 2024 took longer than 180 days to sell and averaged 80% of their original asking or list price, and of the properties on the market 180 days or longer, the average days on market was 569 days. Properties that sold under 180 days sold for 87% of list price. In 2024, sellers consistently sold their properties at 85% of their asking prices, suggesting a growing divide between seller and buyer expectations. 

While the report didn’t specify how many price reductions were made, it did note that luxury homes typically sold for just 87% of their list price. This gap is driven by three key factors: a limited number of comparable listings or recent sales in the ultra-luxury segment, unrealistic pricing expectations from sellers, and a tendency to overestimate demand by underestimating how selective wealthy buyers can be.

In the 10 years that Concierge Auctions have reported on ultra-luxury home sales, the company reported that average sales prices are up 44.2%, or 3.7% annually, despite one in eight properties lagging on the market more than 600 days and 4% taking 1,000 days to sell. Properties that sold within 180 days went for 7% less than the original listing price, while those on the market over 180 days sold for nearly 20% less than the asking price.

The more unique a high-end property is, the more difficulty a seller may have finding a buyer, especially if it doesn’t conform to the ideals held by younger homebuyers. The parameters of what defines a luxury home are everchanging. No longer is it good enough for a home to be lavish. Luxury can be as simple as a sumptuous environment of great ease and comfort or one that includes grand spaces and expensive finishes. Luxury homeowners also cherish exclusivity, security and privacy.

But a new luxury trend report suggests that younger high-end homeowners want accessible, sustainable luxury with thoughtful, authentic, personalized environments, effortless daily task support, and activity-driven experiences more than priceless goods. Gen-Xers and Millennials value “lifestyle, community and meaningful connections…”

Among the features they want in their showplaces include solar tiles, rainwater harvesting systems[AC1] , energy-efficient appliances, intuitive smart technologies, and spacious gathering areas.  

Bedrooms are personal havens for both residents and guests, each featuring a private en suite bath. Wellness and relaxation are prioritized with resort-style bathrooms that include heated floors, steam showers, soaking tubs, aromatherapy systems, infrared saunas, and meditation spaces—all crafted using elegant, sustainable materials.

Today’s affluent homeowners are multitaskers who want their kitchens to match their lifestyles. Double islands allow for separate zones—one for food prep, the other for casual dining or light remote work away from the formal home office. These kitchens often include duplicate sinks and dishwashers, ideal for catered gatherings. Sculleries—modern versions of the butler’s pantry—are making a comeback, offering a discreet space to prep charcuterie boards and manage cleanup out of sight and earshot. Keeping rooms, cozy lounge spaces adjoining the kitchen, provide a spot for short-term relaxation. Beverage stations for coffee, juice, and smoothies are now standard, along with climate-controlled wine and liquor storage.

Indoor-outdoor living areas feature retractable walls of glass that open to landscapes, pools, fountains, and gardens, allowing for year-round enjoyment. These spaces often include built-in fireplaces and cooling fans. Adjacent, a full-service outdoor kitchen and bar supports more casual entertaining.

Dedicated playrooms, billiard rooms, and home theaters provide space for family fun and social gatherings. At the highest end, homes now include game courts for pickleball, bocce, tennis, and basketball. Indoor golf simulators—once the domain of luxury golf retailers—are becoming more common, helping homeowners sharpen their swings between business calls.

Have you noticed the underlying theme? These luxury features aren’t just about aesthetics—they reduce noise and clutter while encouraging genuine, in-person connection. Playing exclusive games and sports well isn’t just a pastime; it’s a social asset, often instrumental in building friendships and business relationships.