Luxury Housing Market Surges While Middle-Market Buyers Stay Sidelined

Luxury homebuyers are continuing to drive housing activity despite elevated mortgage rates, highlighting a growing divide between affluent borrowers and mainstream buyers still struggling with affordability pressures.New data from Redfin shows pending sales of luxury homes rose 4.3% year over year during the three months ending April 30 — the largest increase since January 2025. Non-luxury pending sales also rose, climbing 4% annually for the strongest gain since December 2024.