Rise in all-cash transactions turbocharge price gains for luxury homes

Well-heeled home shoppers are increasingly paying cash, helping turbocharge price gains for the most expensive U.S. homes.

The median sale price of luxury homes — valued in the top 5% of the market nationally — hit an all-time high $1.23 million in the first quarter, an increase of 8.7% from the same period last year, according to an analysis by Redfin. That's almost twice the increase seen in non-luxury homes. 

For homes valued in the middle-third of the market, the median sale price rose 4.6% from a year ago to $345,000, according to the report. Redfin didn't factor in price trends for homes with an estimated value in the bottom third of the market.