California luxury home values tumble as million-dollar listings sell rapidly

According to a new Realtor.com study, luxury housing in California became more affordable in July, with four metro areas ranking among the nation’s ten biggest year-over-year price declines. San Francisco led the state, seeing an 8.6% drop that pushed the top-10% listing threshold to roughly $2.49 million, while San Diego, San Jose and the Oxnard-Thousand Oaks-Ventura region fell 7.3%, 6.9% and 6% respectively. The market remains brisk: million-dollar homes in San Francisco sold in a median of 37 days, and San Jose followed at 38 days, making them the quickest luxury markets surveyed.

Los Angeles, still one of the priciest markets, recorded a 3.8% reduction in its luxury entry point, now near $4 million. Across the United States, the luxury threshold slipped 2.7% to $1.25 million, marking the 29th straight month of declines, yet top-10% listings sold three days faster and top-1% listings five days faster than a year ago. Realtor.com senior economist Anthony Smith noted that faster sales and lower thresholds do not necessarily signal weaker demand, as market dynamics differ by region.