Luxury Real Estate Is Booming — Here’s What That Means for You
Karli Pritchard, Knoxville Realtor
If it feels like luxury real estate is having a moment—you’re not wrong. According to a recent update from Realtor.com, million-dollar-plus homes have been the fastest-growing segment of the real estate market for the past 21 months straight. And as someone who lives in, works in, and loves luxury homes, I wanted to break down what all this means in simple terms.
Let’s start with the basics.
Luxury Homes Are Selling Better Than Ever
Back in early 2023, homes over $1 million made up just 5% of the market. Now? They’re 7.6% of all home sales. That may not sound like a big leap, but in real estate terms—it’s huge.
Homes in this price range are also selling faster than other homes. The average high-end listing is staying on the market for just 75 days, compared to 64 days for homes under $1 million (which actually slowed down from 58 days a year ago). In other words, luxury homes are moving.
Prices Are Holding Strong
Another good sign? Luxury home prices have been really steady. Only about 13% of them saw price reductions—compared to more than 22% of homes under $1 million. So while the broader market might be adjusting, luxury homes are holding their value much more consistently.
Inventory Is Tight, and That’s Driving Demand
We’ve actually seen fewer million-dollar listings recently—dropping from 13.6% of all listings to 12.6%. Less inventory + strong demand = a healthy luxury market. It’s competitive, but in the best way.
What About the Big Picture?
Here’s something really interesting: real estate makes up just 18.7% of the assets held by the wealthiest 10% of Americans. That’s down from almost 20% two years ago, while stocks and mutual funds have taken up a bigger piece of their portfolio.
That tells me there’s still a lot of room for growth in luxury real estate investment. Wealthy buyers have the capacity—and likely the interest—to shift more of their money into high-end properties.
What This Means If You’re Buying or Selling
Whether you're already in a luxury home or you're just starting to explore that world, the trends are clear: luxury real estate is strong, stable, and continuing to grow.
If you're thinking about selling a high-end property, now might be a fantastic time—especially with inventory tightening and demand staying strong.
If you’re thinking about buying, I’d love to help you find a home that not only fits your lifestyle, but makes a smart long-term investment too.
Let’s chat about what’s possible!
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Karli Pritchard, Knoxville Luxury Realtor
Realty Executives Associates | 10255 Kingston Pike
