Sales of luxury homes rose 41.6% year-over-year in the first quarter of 2021, crushing sales of affordable homes (7% increase) and mid-priced homes (5.9%), per a recent report from Redfin.

Luxury homes overlook the Pacific Ocean in La Jolla at sunset on April 21, 2025, in San Diego, California. Kevin Carter/Getty Images This combination of high prices and elevated mortgage rates is ...

According to a new Redfin report, the April year-over-year drop was the largest decline in the luxury homes market since August 2023. April also saw the lowest level of pending sales in over a ...