Luxury Home Prices Rise as the Rich Dodge High Mortgage Rates

Luxury home prices rose 9% in 2023, hitting the highest third-quarter level on record in 2023, Redfin reports, growing nearly three times faster than non-luxury prices.

A rich woman sits on a couch.
(Image credit: Getty Images)

The median sale price of luxury U.S. homes rose 9% to $1.1 million in the third quarter of 2023 versus a year ago, as a growing share of high-end buyers dodged high mortgage rates by paying in cash, according to a new report from Redfin. The median sale price of non-luxury homes also climbed 3.3% to $340,000, the highest level of any third quarter on record.  

Up from 35% last year, 43% of luxury home purchases are now paid for in cash.

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Kathryn Pomroy

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.