In the first quarter of 2019, U.S. luxury home sale prices dropped for the first time since Q2 2016, posting the largest annual decrease since 2010.
The average sale price for luxury homes was down 1.6 percent to $1.55 million in Q1. Homes priced at or above $2 million dropped 16 percent YoY in that time, the second quarter in a row of falling sales, and the biggest decline in nearly a decade, according to Redfin's data. The supply of homes in this price range grew 14 percent over the previous year, and was the fourth consecutive quarter of inventory growth.
For this analysis, Redfin tracks home sales in more than 1,000 cities across the U.S. (not including New York City) and defines a home as luxury if it’s among the 5 percent most expensive homes sold in the quarter. In the other 95 percent of the market, home prices rose 2.7 percent year over year to an average of $300,000 in the first quarter, following six straight years of increases.
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