There are 1.25 million fewer million-dollar homes in America in 2023

According to a recent Redfin report, there were 1.25 million fewer million-dollar homes in America in January 2023.

The number of million-dollar homes fell from a high of 8.6% in June 2022 to about 7% in January 2023, or 6,203,954 homes. However, this number is still up 4.2% from January 2020.

This decline in the number of million-dollar homes is one of the many signs that the market is cooling down. Many homes that were pushed into million-dollar territory at the peak of the market have now dipped back down to six-figures.
However, some of the price declines are likely due to seasonality shifts that are coming back to normal.

For those looking to buy a home, it's essential to consider the current mortgage rates. At today's 6.6% mortgage rate, a buyer with 20% down would have a monthly payment of $5,241 on an $800,000 home. However, at the 3.5% mortgage rate in early 2022, a buyer with a 20% down payment would pay just $5,034 per month for a million dollar home.

How does that translate to our local market?
In the Houston Metro market, the share of million-dollar homes fell from 4.16% (374 of 8,999 single family homes sold) in June 2022 to 3.06% (126 of 4,112 single family homes sold) in January 2023.

But The Woodlands told a different story. The share of million dollar homes increased from 16.04% (34 of 212 single family homes sold) in June 2022 to 19.23% (15 of 78 single family homes sold) in January 2023.

Whether you are looking to buy or sell a million dollar+ home, or you just want to know how your real estate investment is performing in today's market, it's important to partner with a trusted real estate advisor who understands what is happening on a local, as well as a national, level who can advise you with relevant data.