As rising mortgage rates cool the market, the share of U.S. homes worth at least $1 million has fallen from an all-time high last year, according to a new Redfin report. 

Today, just over 7% of U.S. homes are worth $1 million or more, down from June 2022’s record 8.6%. Despite the drop, million-dollar homes are still up from 4.2% before the start of the pandemic. 

While the national decline is partly due to seasonality, Redfin found the June to January drop to be much larger than usual. 

Locally, however, the share of million-dollar homes continued to rise. Phoenix homes worth a million or more rose 0.5% to 6.9% from 6.4% in 2022.

Redfin economics research lead Chen Zhao says even though home values are coming down from their peak, and fewer sellers are getting seven figures, buyers aren’t necessarily getting a break. 

“The typical homebuyer’s monthly mortgage payment is even higher than it was when home values peaked in the spring because rates are so much higher, and although home prices have come down, they certainly haven’t crashed,” Zhao said. “Now isn’t the time for buyers who need to take out a loan to get a good deal: Buying an $800,000 home today would cost more per month than buying a million-dollar home a year ago.”