Tampa, FL – Tampa and Miami posted the highest annual increases in luxury home prices among major U.S. metropolitan areas, according to a new housing market report that highlights continued strength in Florida’s high end real estate market.
The report from Redfin analyzed home sales during the three month period ending May 31st and found luxury home prices nationwide increased 4.7% from the same period one year earlier. During that same timeframe, prices for non luxury homes rose 1.5%.
Tampa recorded the largest increase in luxury home prices, with values climbing 15.6% year over year. Miami followed closely behind with a 14.2% increase.
Meanwhile, prices in the non luxury market moved lower, declining 0.5% in Tampa and 0.7% in Miami.
The report found that higher income buyers continue to support demand for luxury properties even as elevated mortgage rates and affordability concerns have slowed activity among many traditional homebuyers.
Because affluent buyers are often less dependent on financing, the luxury market has remained more resilient than other segments of the housing market.
Florida also ranked prominently in pending luxury home sales.
Tampa placed fourth nationally with a 20.8% increase in pending luxury sales, while West Palm Beach ranked fifth at 18.5%. Miami was seventh, recording a 14.6% increase.
According to the report, the gap between luxury and non luxury home price trends illustrates how demand for premium properties has remained strong even as broader housing market conditions have cooled across many parts of the country.