2024 may have been one of the slowest years for home sales in decades, but it was one to remember for the country’s priciest zip codes.

The number of homes sold for more than $1 million surged 7.1% year-over-year and at least seven single-family homes sold for $100 million or more.¹

While the overall housing market faces challenging costs and rising mortgage rates, the luxury real estate market is thriving. Annual luxury home prices grew by 7.6% — over twice the rate of the traditional market at 3%.² In December, luxury single-family homes experienced a 30.9% increase, while condos and townhomes recorded a 27.6% boost compared to December 2023.³

Meanwhile, pending sales in the housing market at large fell 4.5% month-over-month —the most since 2022 — as mortgage rates started edging up in mid-December.⁴ The weekly average 30-year-fixed mortgage rate now sits at 7.04%, the highest level since May, after hitting an early-December low of 6.6%.⁵

All cash, no contingencies

High-end buyers, undeterred by interest rates or market fluctuations, are fueling an all-cash buying boom. The share of home buyers paying all cash hit 34% through September 2024.⁶

Now, high-net-worth individuals are hunting for luxe primary residences in locales with lower taxes, economic opportunity, increased sense of safety, desirable climates, and better value for money spent, Coldwell Banker reports.⁷ Some of America’s most-coveted cities are Miami; West Palm Beach, Florida; Scottsdale, Arizona; Austin, Texas; and Houston.

Who’s in the market? 

First-class first timers

Last year saw a flurry of high-end sales to first-time buyers. Of the 300 global luxury property specialists surveyed by Coldwell Banker, 47.9% reported an increase in first-time luxury home buyers.⁸

The “She-Elites”

The number of female luxury homeowners is also increasing. Women with a net worth of $5 million or more now own 15.2% of luxury real estate in the U.S. and 13.1% globally.⁹ That number is expected to grow in the coming years, as women in the United States are poised to control $34 trillion in financial assets.

Generation X

Members of Gen X are set to become the first beneficiaries of the “Silver Tsunami” and are ready to upgrade. Gen X luxury homeownership grew by 10% over the past five years, outpacing all other age groups.¹⁰

The so-called “sandwich generation” — often sandwiched between aging parents and their own children — are also at the forefront of a growing trend of multigenerational living: 45% of agents reported that flexible layouts were a top design feature among their clients, alongside first-floor in-law suites, lofts or alcoves, open floor plans and extended family spaces, as well as accessory dwelling units (ADUs).¹¹