Why the Luxury Housing Market Is Moving Differently — And Why Now May Be a Great Time to Sell

Hello, this is Sang Han with Chicago Real Estate.

Lately, we've been hearing that the housing market has slowed compared to the past few years. Inventory has increased, buyers have more choices, and some areas are seeing price adjustments.

However, not every segment of the market is performing the same way. In fact, the luxury housing market continues to show much stronger performance than the broader market.

According to a Keeping Current Matters report published on July 27, 2026, luxury homes are experiencing both stronger price appreciation and higher sales activity than typical homes. If you're considering selling a luxury property, this may be an opportunity worth taking advantage of.

What Qualifies as a Luxury Home?

Many people assume a luxury home simply means a property worth more than $1 million. In reality, luxury homes are generally defined as the top 5% of homes by price within a local market.

That means the definition varies depending on location.

In the Chicago area, neighborhoods such as Gold Coast, Lincoln Park, and North Shore communities including Winnetka, Glencoe, Wilmette, and Lake Forest, as well as suburbs like Hinsdale, Oak Brook, and Naperville, each have their own luxury price points and buyer demographics.

When selling a luxury home, analyzing recent sales within your specific neighborhood and price range is much more valuable than relying on national averages.

Luxury Home Prices Are Rising Faster

According to recent Redfin data:

• The median sale price of typical homes increased approximately 1.5% year over year.

• Luxury home prices increased approximately 5% year over year.

That means luxury home values have appreciated at more than three times the pace of the overall housing market.

[Insert Chart Here]

Year-over-Year Home Price Growth

• Typical Homes: +1.5%

• Luxury Homes: +5%

Source: Redfin, Keeping Current Matters (July 2026)

Many headlines suggest that home price appreciation is slowing, leading some homeowners to believe it's not a good time to sell. However, for luxury homeowners, the story may be very different.

Luxury Buyers Are Still Active

Many buyers today are feeling the pressure of higher mortgage rates, rising home prices, and increasing living costs.

Luxury buyers, however, are often less sensitive to mortgage rates and monthly payment increases, allowing them to remain active even as the broader market cools.

According to Lawrence Yun, Chief Economist for the National Association of Realtors:

• Sales of homes priced below $250,000 remained relatively flat compared to last year.

• Sales of higher-priced homes increased by approximately 10%.

• Sales of homes priced above $1 million increased by approximately 18% year over year.

This shows that the housing market hasn't slowed equally across all price ranges. Buyer activity remains strong in the luxury segment.

Luxury Homes Are Selling Faster Than Many People Think

According to Redfin, the median time on market for luxury homes is currently under 50 days, which is still relatively fast compared to the pre-pandemic luxury market.

Median Days on Market for Luxury Homes by Year

Source: Redfin, Keeping Current Matters (July 2026)

Luxury homes have traditionally been viewed as taking longer to sell because the buyer pool is smaller.

While location, condition, and pricing always matter, today's market shows that well-prepared and competitively priced luxury homes are attracting serious buyers.

Marketing Matters Even More for Luxury Homes

A strong luxury market doesn't mean every luxury home will sell simply because it's expensive.

Luxury buyers are highly informed and carefully evaluate pricing, quality, and value.

Successful luxury home sales require:

1. Accurate Pricing

Price your home based on comparable luxury properties—not average neighborhood sales.

2. Professional Presentation

High-quality photography, cinematic video, drone footage, and professional staging help showcase not only the home's architectural features but also the lifestyle it offers.

3. Targeted Marketing

Listing on the MLS alone isn't enough. Effective luxury marketing also reaches qualified buyers and experienced agents through targeted networks and strategic promotion.

4. A Premium Showing Experience

Luxury buyers value privacy, convenience, and personalized showings. Managing these details professionally can significantly improve the selling experience.

A Final Thought from Sang Han

While the overall housing market has slowed, the luxury market continues to outperform in both pricing and buyer activity.

That said, every luxury market is unique.

In Chicago and the surrounding suburbs, factors such as neighborhood, school district, lot size, architectural style, and renovation quality all influence a home's value and marketability.

Rather than making decisions based solely on national headlines, it's important to evaluate your home's position within its specific local market.

If you're considering selling your luxury home, start by understanding its current market value, your competition, and the best timing and strategy for today's market.

A well-prepared luxury property can take full advantage of the strong demand we're seeing today.

If you're thinking about selling a luxury home in Chicago or the surrounding suburbs, I'd be happy to help you develop a customized strategy based on today's market conditions.

Sang Han

Chicago Real Estate

📞 773-717-2227

📧 ChicagoBDB@gmail.com