Luxury Properties

Quick Takeaways

The luxury home market is a unique slice of the real estate market that encompasses the top 10% of the most expensive homes in the real estate market. Currently the threshold for luxury falls at about $1.3 million.
There is no checklist for labeling a property as luxury, in terms of features, but many are common among upscale properties, including prime location, high-end interior finishes, customized closets, and hotel-like amenities.
CWorking with luxury buyers requires its own set of skills and knowledge. Familiarizing yourself with luxury trends, brands, and even hobbies will set you up for success in the luxury sector.

Source: 7 Luxury Real Estate Market Trends & How to Buy a Luxury Home in 2022 (2022)

Luxury homes are those at the top of the real estate market, both in terms of price and features. Currently the luxury threshold nationally is $1.3 million, but luxury prices can vary significantly in different metros and regions. For example, $1.3 million in the San Francisco Bay Area may be the entry point for a starter home, whereas in Columbia, SC it may be the top 10% of listings. It is important to know your market and to know what defines luxury, presitige, and exclusivity in your region.

Even with rising or uncertain mortgage rates, luxury buyers continue to drive the market. This growth and proliferation of luxury buyers continues to highlight the growing divide between middle-market buyers struggling to find affordability and luxury buyers with cash to spend. The floor for luxury homes may have leveled out, but the ceiling continues to grow.

Working with luxury buyers requires its own set of skills and knowledge. Familiarizing yourself with luxury trends, brands, and even hobbies will help set yourself up for success in the luxury sector. Luxury buyers are looking for vacation-like backyards, at home offices, and restaurant worthy kitchens.

See References for more information.

Featured

Luxury Homes Certification (LHC)

Luxury Homes Certification is for agents looking to hone their skills in the ever-growing luxury home market.

References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

The Luxury Property Market

How to Sell Luxury Real Estate in a Slow Market (RIS Media, Jun. 22, 2023)

“The luxury real estate market ebbs and flows. That’s simply the nature of the industry. Finding success as a luxury real estate professional means being able to ride the waves and always coming out on top. By putting these strategies into practice, you’ll be able to continue selling luxury real estate—even in a stagnant market. “

Luxury Housing Market Surges While Middle-Market Buyers Stay Sidelined (National Mortgage Professional, May 27, 2026)

“Luxury homebuyers are continuing to drive housing activity despite elevated mortgage rates, highlighting a growing divide between affluent borrowers and mainstream buyers still struggling with affordability pressures. New data from Redfin shows pending sales of luxury homes rose 4.3% year over year during the three months ending April 30 — the largest increase since January 2025. Non-luxury pending sales also rose, climbing 4% annually for the strongest gain since December 2024. The report suggests that while lower mortgage rates earlier this spring helped improve buyer demand broadly, wealthier borrowers remain far less sensitive to financing costs than middle-market consumers facing stretched monthly payment calculations.”

Luxury Housing Market Trends and Outlook 2026: Prices Stabilize (realtor.com®, Apr. 22, 2026)

“The luxury segment of the real estate market has entered a phase of stabilization in 2026. The national entry point to the luxury market, defined as the top 10% of listings, has leveled, holding steady near $1.2 million, which represents a fractional 0.6% decline from the previous year.While entry-level luxury has found a reliable floor, the ultraluxury segment (the top 1% of the market) is showing signs of renewed momentum. Although the threshold for the top 1% of listings remains slightly lower than it was a year ago, it has climbed consistently for five consecutive months, rising from $5.4 million in September 2025 to $5.6 million to start 2026. This sustained momentum suggests that while the broader high-end market is normalizing, the most exclusive properties are regaining ground and continue to command premium pricing, a trend expected to continue in 2026.”

High-End Homes Sell Before They’re Built (Florida REALTORS®, Mar. 30, 2026)

“Ultrawealthy home buyers are increasingly securing properties before they are built, relying on private waitlists and broker relationships rather than traditional house searches… Limited supply and stronger demand for customization are pushing more buyers to commit early. Many top-tier deals are now taking shape before a property is ever publicly listed. REALTOR® Alin Glogovicean said, "Home buyers are very selective because prices and mortgage rates are high – they want a house that has everything. Even super wealthy buyers are hesitant to pull the trigger because there's not a lot of great inventory and they don’t want to settle."”

Marketing to the Millionaire: Profile, Preferences, and More

The Multimillion-Dollar Condo Fit the Bill—But It Was the Faux Plants That Sold It (The Wall Street Journal, Sep. 26, 2023)

“Staging no longer ends with couches, bedroom furniture and fresh flowers; it has to include display luxury candles, branded blankets and oversize coffee-table books that aim to give listings an aspirational feel. They incorporate labels such as Diptyque and Assouline, known to the most discerning clients.”

Quiet Luxury is Out and Living Large Is In – Luxury Real Estate Trends (Forbes, Jan. 27, 2026)

“Living large is back, but maybe not in the way that you think. “Living large today is less about showing off, and more about showing who you are,” Michael Altneu, vice president of the Coldwell Banker Global Luxury Program, says. As buyers make longer-term decisions, he explains that homes have become a real expression of identity and lifestyle. “People want space that supports how they actually live — working, hosting, prioritizing wellness, and spending meaningful time with family.” As a result, he says there’s a strong demand for larger, more flexible homes. “They want everyday usability, personal expression, and long-term value, not just visual impact,” Altneu explains.”

Personal Styling and Property Staging for Luxury Listings (NAR REALTOR® News, Dec. 3, 2025)

“Selling luxury listings is an art. No matter how high spec the property, or how high net worth the potential buyer, you can’t leave anything to chance. Ideally, a luxury listing should look the part and sell itself. It’s almost always possible to elevate the look and feel of a listing, though, and it could be worth investing in personal styling and property staging to make the right impression on buyers. Elevating your style or listing doesn’t need to cost a fortune. A relatively small outlay between $500 and $2,500 (based on an aggregate of costs you might have to upgrade your listing, wardrobe and car for luxury viewings) could generate an impressive ROI if it helps you close your first luxury listing deal.”

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

12 Secret Luxury Home Buyers Know (Audiobook, eBook)

The Luxury Strategy (Audiobook, eBook)

Luxury Brand Management (Audiobook, eBook)

Selling Luxury (Audiobook, eBook)

Selling Luxury Homes (Audiobook, eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Selling Luxury Homes: Become the Preferred Real Estate and Trusted Advisor to High-end Clients in Your Market (Windsor, CT: Tide-Mark Press, 2010)

The World of Luxury Real Estate (CreateSpace, 2007)

Rich Buyer, Rich Seller: The Real Estate Agents Guide to Marketing Luxury Homes (Institute for Luxury Home Marketing, 2003)

Trading Up: The New American Luxury (New York, NY: Portfolio, 2003)

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