Luxury Home Prices Are Falling Nationally, but Manhattan and Connecticut Are Running Hot

The top of the U.S. housing market is sending mixed signals. Nationally, the price of entry into the luxury market keeps slipping. But in a handful of prime markets, wealthy buyers are signing deals faster than they have in years.

Prices drifting lower nationwide

The national entry point to the luxury market, defined by Realtor.com as the top 10% of listings, fell to $1.199 million in September 2026. That was 3.6% lower than a year earlier and the 30th consecutive month of annual declines, according to the Realtor.com report released Oct. 14.

The "ultra-luxury" threshold, the top 1% of listings, was $5,128,119.

Los Angeles remains the most expensive luxury market, with an entry point of $3.95 million. The Bridgeport-Stamford-Danbury area of Connecticut fell 7.3% to $3.60 million and is now 15.6% below a year ago.

Even so, luxury homes are selling faster than a year ago across every price tier Realtor.com tracks.

Manhattan: busier than usual

In Manhattan, buyers signed 55 contracts for homes priced above $4 million in the first two weeks of October, above the 10-year average of 47 for the same period, according to the Olshan Report cited by Realtor.com News. The top deal was a never-lived-in Park Avenue penthouse that went into contract at about $25 million.

Westchester and Fairfield: strong demand

North of the city, the market is even firmer. In Westchester County, homes priced at $2 million and up saw both higher sales volume and higher prices in the third quarter, with homes selling faster, according to Houlihan Lawrence, as reported by Westfair. In Connecticut's Greenwich, Darien, New Canaan and Rowayton, luxury sales rose from a year ago, even with mortgage rates above 7%.

Florida's bright spots

Naples-Marco Island and Crestview-Fort Walton Beach-Destin, Florida, were the only top-10 metro areas where luxury prices rose from a year ago in September, according to Realtor.com.

Why luxury markets move differently

The broader U.S. housing market is heavily shaped by mortgage rates, since most buyers finance the bulk of a home's price. At the top of the market, a much larger share of purchases are made in cash or financed against investment portfolios rather than through a conventional mortgage, which means changes in interest rates have a smaller, slower effect on what luxury buyers are willing to pay. That's part of why national luxury prices and a handful of elite neighborhoods can tell very different stories at the same time.

Luxury housing data is also naturally choppier than the broader market simply because there are far fewer sales to measure. A single multimillion-dollar estate changing hands can swing a small metro area's median luxury price noticeably, which is why analysts tend to look at trends over several months or a full season rather than reacting to any one data point.

What it means for you

• Buyers in many markets have more room to negotiate than in recent years.
• Sellers in hot prime areas may still see multiple offers, but pricing realistically matters.
• If you're downsizing, a slower luxury market where you sell and a stronger one where you buy can work against you; plan the timing of both.
• Ask about the full cost of ownership, including taxes, insurance and maintenance, which have risen sharply in many coastal areas.

The bottom line

"Luxury" isn't one market. Prices are drifting lower in many places, giving buyers leverage, while a few prime areas remain highly competitive. Local data matters far more than national headlines.

Sources: Realtor.com Economic Research (Oct. 14, 2026), Realtor.com News / Olshan Report (Oct. 12, 2026), Westfair Communications (Oct. 7, 2026)