Austin Luxury Home Prices Fall 10% as Sellers Grow More Flexible

While some luxury markets such as Los Angeles are heating up, others are cooling down rapidly.

Listings at the luxury level—defined as the top 10% of the real estate market—have declined nationwide to $1,250,750 in July, down 2.7% year over year, the 28th straight month of annual decline, according to the latest Realtor.com® monthly luxury report.

But some metros are sinking much faster than that. Austin, TX, posted the biggest drop in the country, its luxe entry threshold down 9.6% year over year to $1,262,726, more than three times the national pace.

These are the top 10 metros seeing the steepest asking price declines at the luxury level:

The silver lining is that these discounts may mean properties are moving faster. Nationwide, high-end homes took longer to sell in July than in June across every luxury tier—from the top 10% to the top 1%—which is typical for the midsummer season. But all tiers are seeing quicker sales than a year ago.

Austin tops the luxe price cuts

The capital of the Lone Star State has seen the steepest luxe price declines. It was followed by uber-expensive cities San Francisco and Boston, with both entry points down 8.6% year over year—though those markets are moving downward for vastly different reasons.

Austin not only has the highest nationwide luxe price declines year over year at -9.6%, but its 1 million-plus listings have fallen by 17.8%, second only to San Francisco (-20.9%). The eclectic city’s high-end luxury (the top 5%) and ultraluxury (top 1%) tiers are down 9.6% and 5.4%, respectively.

Austin also tops the median days on the market, at 78 days, up 2 days from the same period last year.

It is worth remembering that Austin, like much of Texas, saw a steep run-up during the COVID-19 pandemic years, fueled by historically low interest rates as well as homebuyers’ desire to live with fewer restrictions. That run-up is now coming back down to earth.

On the ground in Austin

Austin-based Compass agent Michael Reisor tells Realtor.com that at the $2 million-plus price point, he is seeing sellers being more flexible, but everyone still leaving the table happy.

“The pricing was grounded in data, and [sellers] wanted to make a deal work,” he says.

At the $5 million-plus price point, he says, most Austin inventory trades off market, so those sales aren’t recorded on the multiple listing service, and therefore not being counted.

“The off-market component is massive,” he says.

But even at that level, “sellers are being reasonable and offering discounts and concessions,” he adds.

However, all bets can be off with particularly hot areas such as Tarrytown or Westlake, or with extremely desirable properties like the $14 million Lake Austin house he represents that just received a verbal offer.

“In the $5 million-plus range, we’re seeing a lot of buyers come out of the woodwork because of Space X,” he says, referring to Elon Musk‘s space technology firm. The firm’s Bastrop County facility is only 45 minutes from Austin.

“We’re seeing people say, ‘We already live in a $2.5 million house in Tarrytown, now let’s move to a $5 million house.'”

San Francisco: Emptying, not stalling

The original tech hub has seen a sharp luxe price decline similar to Austin’s, down 8.6% year over year, tying it with Boston. But the reasons for the drops are as different as could be. In short, San Francisco’s median luxury price point is falling because the most expensive homes are getting snapped up quickly.

On the list, San Francisco boasts the shortest median days on the market at 37. Homes in the Golden City are moving nearly twice as fast as the national level for million-dollar homes, which stands at 66 days on the market.

While the Silicon Valley city’s luxe entry point fell to $2,490,089, the metro’s high-end market is not deteriorating.

“A drop in home prices typically signals softening demand and an overdue recalibration, but homes in San Francisco are still routinely selling above asking price,” explains Realtor.com senior economist Anthony Smith.

In fact, the metro is currently classified as a seller’s market in the second quarter of 2026.

The price declines are more about a lack of inventory than a lack of desirability, says Smith. “The decline is coming from a pool that’s emptying, not one that’s stalling.”

The steep decline in the number of million-dollar-plus listings (-20.9%), combined with the short time on the market, can suggest that more homes are coming off the market as more buyers compete for them, concludes the report.

“Million-dollar properties here are selling faster than new ones are coming on the market,” adds Smith. The area’s AI boom and the wealth it has generated mean there are far more buyers competing at the very top segment of the market.

“What looks like a market marking itself down may be a market clearing itself out,” he says.

Following San Francisco, other Golden State metros in the list’s top seven include San Diego, San Jose, and Oxnard.

Jenna Hoyas of the The Yost Quesada Team at Douglas Elliman in San Diego says brokers are seeing a slowdown at the higher end, along with more seller willingness to negotiate.

“We recently had clients looking at properties above $10 million, and the increased flexibility has been noticeable,” she says.

Now is a prime opportunity for buyers to bag a discount on the luxe end, Hoyas adds.

Her colleague Kristina Quesada agrees, but notes that prices are very property-specific and much depends on seller motivation.

“Some sellers are willing to take a loss simply to eliminate holding costs, particularly those who own multiple assets,” she says.

Boston’s old-money market

In Boston, where the median days on the market is now 53, George Sarkis at Douglas Elliman says that he isn’t seeing a weakening at the top of the luxury market, much of it driven by “old money.”

Here, it’s not about IPO wealth but generational wealth.

He notes that in 2026 alone, his team closed on three $20 million-plus transactions. His team also set a record this year for number of $10 million-plus transactions.

“That doesn’t mean every luxury property is performing equally,” he tells Realtor.com. “There is a major difference between a truly special, turnkey property and a home that is dated, compromised, or simply overpriced.”

He cites Back Bay boutique condos and single-family brownstones along coveted streets like Marlborough Street, Commonwealth Avenue, and Beacon Street as being in hot demand. And homes that check all the boxes will always sell.

Earlier this year, he says the $11.5 million 1890 townhome at 362 Marlborough St. sparked an intense bidding war due to it being the only corner single-family home available at the time, with exposure on three sides, an elevator, and garage parking. 

“When something checks that many boxes and there is nothing comparable available, buyers understand they may not get another opportunity anytime soon,” he says.

And like Austin, Sarkis says, many of Boston’s high-end deals never make the MLS.

“It’s an incredibly private wealth market with a significant amount of old money, and some of the largest transactions simply never become visible to the general public,” he says.

“From what we’re experiencing firsthand, Boston’s high-end market isn’t slowing down. Quite the opposite.”