The turbulence of the housing market over the past three to four years continues to impact the upper slices of the market, according to a new study.
Research by GOBankingRates has found that owners of multimillion-dollar properties in some parts of the U.S. are finding it tough to sell their homes for a profit.
"Considering how much home prices ran up in the aftermath of the pandemic, luxury home prices have actually held up fairly well on a percentage basis," GOBankingRates said. "But the average dollar amount lost in some states still remains staggering."
To identify the luxury home markets where prices are dropping the most, GOBankingRates used data on Zillow to calculate the typical luxury home value in each of 100 major metropolitan markets, as well as the change in home prices from April 2022 to April 2023.
Here, in ascending order, are the 10 states where luxury home prices are falling the most.
10. Hawaii
Hawaii’s luxury home market prices dropped an average of $31,900. Year-over-year percentage change: 2.33%.
9. Colorado
Colorado’s luxury home market prices dropped an average of $31,695 statewide, and an average of $46,832 in Denver alone. Year-over-year percentage change statewide: 3.55%.
8. Montana
Montana’s luxury home market prices dropped an average of $27,574. Year-over-year percentage change: 3.69%.
7. Oregon
Oregon’s luxury home market prices dropped an average of $30,731. Year-over-year percentage change: 4.11%.
6. District of Columbia
Washington D.C.’s luxury home market prices dropped an average of $55,911. Year-over-year percentage change: 4.74%.
5. Utah
Utah’s luxury home market prices dropped an average of $40,762. Year-over-year percentage change: 5.18%.
4. Nevada
Nevada’s luxury home market prices dropped an average of $33,942 statewide, and an average of $75,814 alone in Reno, which had a drop of 8.68% in the YOY percentage change. Year-over-year change statewide: 5.34%.
3. California
California’s luxury home market prices fell in many of the state’s major metropolitan markets, especially in San Francisco, where luxury home market prices dropped an average of $401,997, and the YOY percentage change was 17.19%. Year-over-year percentage change statewide: 7.52%.
2. Washington
Washington State’s luxury home market prices dropped an average of $83,695 statewide, but hardest hit were Bellevue, Redmond, and Bothell, where the YOY percentage change plummeted between 9.49% and 12.07%. Year-over-year percentage change statewide: 8.19%.
1. Idaho
Idaho’s luxury home market prices dropped an average of $63,985. Year-over-year percentage change: 8.57%.
The full report can be viewed here.
