Despite prolonged high interest rates leading to the lowest home transaction volume in 30 years last year, sales of luxury homes priced at $1 million or more approached nearly 300,000 units. Notably, many of these buyers paid the majority of the purchase price in cash, signaling unrelenting demand in the high-end housing market.

According to real estate data firm Realtor.com on the 19th, sales of homes priced at $1 million or more reached 300,000 last year. This represents a 9.1% increase (25,000 units) compared to the previous year’s 275,000 transactions.

The National Association of Realtors (NAR) reported that in over half of 200 major metropolitan areas, both the number of $1 million-plus home sales and their share of total transactions increased last year. Regions leading this luxury home sales trend include California, Seattle, Colorado Springs, Durham, and Chapel Hill.

Hannah Jones, senior economic research analyst at Realtor.com, explained, “In California’s major metropolitan luxury housing markets, $1 million isn’t necessarily a lavish price—it’s become a standard benchmark for typical homes.”

A notable trend in luxury home transactions is the growing number of buyers purchasing properties entirely in cash without taking out mortgages. With 30-year fixed mortgage rates hovering in the high 6% range, potential buyers who already own multiple properties are leveraging their assets to pay in full upfront.

Jay K. Gupta, a broker at Equity Colorado Real Estate, noted, “Buyers of million-dollar-plus homes typically own two or three properties or are actively trading them. By paying a significant portion in cash upfront, they gain greater budget flexibility.” Coastal California cities are at the forefront of this $1 million-plus home transaction boom. In San Luis Obispo, 38.6% of total home sales were priced at $1 million or higher, up 6.5 percentage points from the previous year. In the Greater Los Angeles area, $1 million-plus home sales rose 5.9 percentage points year-over-year, accounting for 47.7% of all transactions. In Seattle, such sales increased by 5.5 percentage points, comprising 27% of the market.

Following California’s lead, other metropolitan areas are also seeing a surge in luxury home sales. In Colorado Springs last year, 14.2% of homes sold exceeded $1 million, a 6.3 percentage-point increase from the prior year. Colorado Springs has gained attention as a tech hub, with companies like Oracle and Hewlett Packard Enterprise expanding operations and creating high-income jobs. Over the past five years, wages for Big Tech workers in the area have surged by 20%, driving demand for upscale housing.

Benjamin Day, managing broker at Sotheby’s International Realty, said, “Colorado Springs consistently ranks high in livability indices, making it an attractive place to live. With abundant trails, open spaces, and strong school districts, it’s a highly appealing location.”

Following Colorado Springs, Durham-Chapel Hill also saw a notable rise in $1 million home sales. Last year, 12.6% of homes sold in the region exceeded $1 million, up 5.5 percentage points from the previous year. Market experts predict that this $1 million home sales trend will continue into this year, fueled by the steady growth of high-paying Big Tech jobs sustaining demand for luxury real estate.

Realtor.com stated, “The $1 million-plus housing market remains the most resilient segment of the real estate industry.”

*By Reporter Park Hong-yong*

<Hongyong Park>