In Philly and Delco, listings and sales of luxury homes are down from last year, but prices are up
In the Philadelphia area and nationwide, luxury home prices are outpacing prices in the rest of the market. “The people buying at the top end are playing by different rules,” a Redfin economist says.
In Philly and Delaware County, listings and sales of luxury homes are down from last year, according to an analysis by the real estate brokerage Redfin.
The luxury home market in the counties is relatively small, “so it can be somewhat volatile,” said Chen Zhao, head of economics research at Redfin.
In the combined market of Philadelphia and Delaware Counties, 285 luxury homes sold between July and September of this year. That’s down about 16% from the same time last year.
Redfin defines luxury homes as those in the top 5% of an area’s prices. The median luxury sale price in this region was about $1.3 million, according to Redfin.
A low supply of homes for sale is helping drive luxury trends. At the end of September, the number of active listings of luxury homes — 503 — was down about 23% from last year, the sharpest drop out of the 50 populous metro areas that Redfin analyzed.
Zhao noted that luxury home owners are less likely to need to sell their properties, and decisions to hold onto multiple luxury homes during a time of economic uncertainty may be contributing to the tight supply.
Faster price growth for luxury homes
Prices for luxury homes have grown faster than prices for other homes both in the Philadelphia region and nationwide.
In the combined market of Philadelphia and Delaware Counties, sale prices grew by almost 8% for luxury homes and about 6% for homes in the middle-price range over the last year.
Nationally, luxury prices increased by about 5%. Prices for homes in the middle range increased by about 2%.
“Luxury prices are outpacing the rest of the market because the people buying at the top end are playing by different rules,” Sheharyar Bokhari, senior economist at Redfin, said in a statement.
Unlike middle-income homebuyers, people purchasing homes at the highest price points don’t need mortgage interest rates or prices to fall before they can afford to buy. They’re more likely to pay in cash or take out smaller loans. Some are choosing real estate as a more stable investment.
“That demand, even at a smaller scale, is enough to keep pushing luxury prices up faster than the broader market,” Bokhari said.
How other metros compare
Between 2024 and 2025, luxury sales rose the most — almost 31% — in the pricey market of San Francisco. The median luxury sale price was more than $6 million.
Luxury homes sold the fastest — in a median of 14 days — in the San Jose, Calif., region and the slowest — in a median of 130 days — in the Miami metro area.
Florida is home to the areas where luxury prices rose and fell the most over the last year. They increased by about 15% in the West Palm Beach metro, and decreased by about 3% in the Tampa area.