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Number of US homes worth $1 million or more has hit an all-time high - but the trend is reversing in three 'boomtowns'
There are more homes worth $1 million in the US than ever before, following years of house price rises.
After a decade of rock bottom interest rates, sluggish homebuilding and the lockdown-fueled 'race for space,' home values have rocketed higher.
Yet the recent higher mortgage rates over the past 18 months have not resulted in lower demand as historically low amounts of properties are available, pushing prices even higher.
So much so that now nearly 1 in 10 homes across the country are worth $1 million or more.
The year-on-year rise of 7.6 percent leaves the housing market with the highest share of million dollar homes on record.
Luxury homes have seen an even faster increase in sale prices over the last year
A luxury home for sale in Indianapolis, currently on the market for $1.2 million
It is almost double the 4 percent share of the market before the pandemic, according to data compiled by Redfin.
As of June 2024 there were around 8 million homes worth at least $1 million.
The median sale price for American homes is at a record high, having risen 4 percent in the last year alone.
But prices are rising even faster for more expensive homes.
The median sale price of luxury homes rose 9 percent year-on-year, to a record $1.18 million by June 2024.
This has pushed homes previously on the cusp of a $1 million valuation over the edge, accounting for much of the rise of homes worth more.
The number of homes worth more than $1 million rose across the country, except in three of the biggest cities.
There was a drop in homes worth $1 million in Austin, Texas.
Austin experienced a Covid-era boom as highly skilled workers looked to take advantage of the flourishing tech industry.
Others, priced out of states such as California, were looking for greater value for money.
The boom left 10.1 percent of homes costing more than $1 million, which dropped to 10 percent as of June.
The number of million-dollar or higher homes remained constant in Indianapolis, standing at 2 percent of the city's overall market, and Houston at 3.6 percent.
Texas has seen a recent new-home construction boom. This has increased the supply of available properties and stopped prices climbing as fast as elsewhere.
The amount of houses on the market is around 30 percent lower than before the pandemic as many homeowners who have cheaper fixed-rate mortgages are keen to stay put and keep their lower rates.
Houston is one of the few cities that has not seen a rise in homes costing more than $1 million
Meredith Whitney said that mortgage rates need to hit 6 percent or below in order to kickstart the frozen market
The average 30-year fixed-rate mortgage eased to 6.47 percent this week, according to Freddie Mac figures out August 8
'Home prices, insurance and mortgage rates have shot up so much that many people are either priced out of the market or weary of committing to such a high monthly payment,' Julia Zubiate of Redfin said.
Mortgage rates have fallen to their lowest level in 15 months but the 'Oracle of Wall Street' Meredith Whitney has said rates need to drop below 6 percent before the market will kick start.
Once rates are within the 5 percent field buyers tend to feel encouraged that it is worth taking the plunge.
Whitney, who earned her nickname after predicting the global financial crisis, said house prices must also drop by a tenth in order to make any material difference in affordability.
Decades-high mortgage rates and record house prices mean the average payment on a home loan this year is double what it was in 2000, she said.
The average 30-year fixed-rate mortgage eased to 6.49 percent this week, according to Freddie Mac figures out August 15.