A million-dollar home used to be the epitome of luxury, but Realtor.com ® ‘s new What is Luxury Report shows that the luxury home threshold has risen from $796,922 in 2016 to about $1.3 million today. While a $1 million home was comfortably above the luxury bar in 2016, buyers now need to spend closer to $1.6 million to reach that same level of luxury status.

“While a million-dollar home still represents an important benchmark, it’s not the luxury marker that it once was nationwide and in many markets,” said Danielle Hale, chief economist at Realtor.com ® . “With or without a seven-figure price tag, luxury is often about exclusivity and relative standing in a local market. In many areas a high-end home can rise many multiples above the area’s typical home price. Further, with a dr

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