Cash Purchases

Well-to-do buyers are avoiding high interest rates with cash purchases, pushing luxury home prices up even more than regular houses. The median luxury home price rose 9% YOY in Q3 2023 to $1.1 million, the highest third quarter on record, according to a new analysis from Redfin. It’s also three times faster than non-luxury prices, which were up 3.3% to $340,000 in the same period. Luxury sales seem to have followed a similar pattern as regular homes, with sales and listings falling last year before reversing course in 2023. Now, limited inventory has increased competition and pushed prices higher. But while mid-tier buyers suffer high rates, high-end buyers bypass them with cash, avoiding mortgages altogether. More than two in five…