The prices of luxury homes in the United States are higher than they have ever been, with the median-priced home selling for a record $1,225,000 in the first quarter, which is an increase of 8.7 percent from a year earlier, according to a recently released report from Redfin.

Luxury home prices are growing primarily because demand for high-end homes has remained the same unlike with middle-of-the-road homes, partly because most high-end buyers are undeterred by high mortgage rates.

“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent. “They’re ready to buy with more optimism and less apprehension.”

However, the Philadelphia metro area is not following the national trend when it comes to luxury home sales. In fact, the region saw a drop in sales of 23 percent in the first quarter of 2024.

This puts it in second place nationwide among the 50 most populous metros for the biggest sales decrease, behind only Newark, New Jersey (23.6 percent).

The median luxury home price in the Philadelphia metro for the same period was $1,061,600.

To delve deeper into the trends and details behind these shifting dynamics in luxury home sales across the country, click through to read the full Redfin report. Explore how regional variations like Philadelphia’s surprising downturn contrast with the national surge in luxury home prices.