The luxury housing market is flashing a surprising signal after 29 months of falling prices

High-end homes may be out of reach for most people, but the price of luxury is slipping a little lower these days. The entry point for buying a luxury home dropped to $1,200,005 during the month of August, according to a new report from Realtor.com. That’s a 4% drop from July 2025, and the latest decline in 29 straight months of falling luxury home prices. For the purpose of tracking the upper tiers of the real estate market, Realtor.com defines a luxury home as anything above the 90th percentile of list prices. Listings priced between the 90th and 95th percentile are categorized as entry-level luxury houses, while listings above the 95th percentile fall into the high-end luxury category. The 99th percentile marks the uppermost tier, defined as ultra-luxury listings that often are rare or custom properties, according to Realtor.com. The top 5% of listings dipped 4.2% in August compared to last year, with the top 1% of listings falling 4.6% during the same time period. In August 2025, high-end luxury homes in the 95th percentile started at $1,894,230, while the uppermost echelon of luxury homes fell to a still stratospheric $5,163,712. With list prices sliding a bit, high-end homes…