Luxury homes have the potential to make investors and homeowners a lot of money, but as they are so high-priced to begin with, they can also lose large sums when the market turns sour. In high-priced states like California, for example, even a relatively modest percentage loss can translate to a six-figure drop in home value.
Considering how much home prices ran up in the aftermath of the pandemic, luxury home prices have actually held up fairly well on a percentage basis. But the average dollar amount lost in some states still remains staggering.
Here are the 10 states showing the biggest percentage drop in home values from April 2022 to April 2023.
- Year-Over-Year (%) Change in State Luxury Home Values: -2.33%
Hawaii had a relatively modest year-over-year price drop for luxury homes, but it was still big enough to rank in the top 10. Even a relatively small percentage drop still translated to an average $31,900 loss in home values in the luxury Hawaii market, where prices reached $1,370,520 in Apr. 2022.
- Year-Over-Year (%) Change in State Luxury Home Values: -3.55%
Colorado luxury homes had a relatively minor percentage drop over the past year, but it still amounted to an average loss of $31,695 per luxury home. High-value houses in Denver fell $46,832 on average, a drop of 4.87%.
- Year-Over-Year (%) Change in State Luxury Home Values: -3.69%
Luxury homes in Montana had the smallest drop in value in absolute terms over the past year, falling just $27,574. This brought the average luxury home value in Montana to $718,728 as of Apr. 2023.
- Year-Over-Year (%) Change in State Luxury Home Values: -4.11%
Pricey Bend saw luxury home values plummet $100,671 from Apr. 2022 to Apr. 2023, a significant 8.72% drop. Portland also saw a 5.21% fall. Overall, Oregon saw an average drop of $30,731 per luxury home.
6. District of Columbia
- Year-Over-Year (%) Change in State Luxury Home Values: -4.74%
The average luxury home price in the District of Columbia was quite high in Apr. 2022, at $1,178,527. A tumble of 4.74% brought that average home price down to $1,122,617 by Apr. 2023, a fall of $55,911.
- Year-Over-Year (%) Change in State Luxury Home Values: -5.18%
Top-end homes in Utah fell from an average value of $786,825 in Apr. 2022 to $746,064 one year later, a fall of $40,762.
- Year-Over-Year (%) Change in State Luxury Home Values: -5.34%
Nevada luxury home values fell over 5% over the past year, with the biggest culprit being Reno, which had a drop of 8.68%. The average decline of $75,814 in Reno more than doubled the state average of $33,942.
- Year-Over-Year (%) Change in State Luxury Home Values: -7.52%
California luxury homes dropped by over 7% on average over the past year, but many cities in the state fared much worse. Luxury homes in San Francisco, for example, suffered the biggest drop of any city in America, falling a whopping 17.19% on average, amounting to an astonishing $401,997. Numerous other Bay Area cities suffered the same fate, with luxury prices in Berkeley, San Mateo, Oakland, Fremont and Redwood City all falling between 12.68% and 14.99%.
- Year-Over-Year (%) Change in State Luxury Home Values: -8.19%
Bellevue, Redmond and Bothell were the biggest culprit in terms of dragging down luxury home values in Washington, with prices falling between 9.49% and 12.07% over the past year. Overall, the average luxury home in Washington dropped $83,695 from Apr. 2022 to Apr. 2023.
- Year-Over-Year (%) Change in State Luxury Home Values: -8.57%
Idaho saw the largest fall in luxury home values over the past year, from an average to $746,488 to $682,503. That 8.57% drop amounted to an average loss of $63,985 from Apr. 2022 to Apr. 2023.
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