Luxury Real Estate Forecast 2026: Will the High-End Market Stay Hot?

As we enter 2026, many potential buyers are wondering what they can expect from the luxury housing market.

Luxury housing markets can differ based on area. Luxury homes in small towns could have a different market and prices compared to a larger metropolitan area. In most markets, luxury homes are typically valued at $1 million and above.

Some of the features that luxury homes include are a great location, high-end appliances, top-quality interior finishes and exclusive amenities.

To prepare for entering the luxury real estate market, consider applying for a pre-approval today!

It is hard to tell exactly what luxury home inventory will look like in 2026, however viewing the luxury home inventory of the past few years might give us a little insight into how things will look in 2026.

May of 2025 saw inventory of single-family luxury homes reach a two year high, up 40.4% since 2023. While there were significantly more options on the market at this time, many desirable properties were quickly purchased. October 2025 saw slightly less homes on the market, the total inventory of luxury single-family homes was 76,772.

If these trends continue, we could see more luxury homes being listed in 2026, though you shouldn’t expect them to stay on the market too long.

The National Association of Realtors®, NAR, predicts that 2026 will see the median listing price of homes to increase by 4%. While 4% may not seem like a major increase, for any luxury home worth $1 million that is an extra $40,000 buyers will have to pay.

A few things that will help determine luxury home prices in 2026 are locations and markets. If there is a high demand of luxury homes in a certain area, the prices of those homes will increase. With mortgage rates dropping, home prices could also increase as buyers could afford to put more money towards their principal.

One challenge the luxury housing market could face in 2026 is the change in mortgage rates and traffic that will bring to the market.

With the NAR believing mortgage rates will drop to around 6% in 2026, we could see more potential homeowners taking advantage of this decrease and joining the market. With more buyers looking for homes in 2026, we could see the market shift slightly towards sellers, giving them the ability to be more selective with offers leading to higher home prices.

If you are looking to enter the luxury real estate market in 2026, getting pre-approved as early as possible can help you stay competitive during your home search.

A pre-approval will show you how much you could get a home mortgage for, allowing you to focus on luxury homes within your price range. Your pre-approval can also be presented to sellers to show you have the financial backing to buy a property.

Pre-approvals help you say competitive by removing the time between finding a home and presenting the seller with your mortgage approval. Eliminating this time can reduce the chances of someone coming in and out-bidding you for your dream home as you wait for a lender to approve your mortgage.

Most pre-approvals will last from anywhere between 3 and 6 months, giving you plenty of time to find a home.

To prepare for buying a home in the luxury real estate market and stay competitive, start your pre-approval application today!

_{All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate. Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.}

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}