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Insights for Mid-Year 2025 Report

Insights for Mid-Year 2025 Report

 

  • A Market Holding Strong. Despite continued economic uncertainty, luxury real estate showed notable resilience in the first half of 2025 — with prices continuing their steady climb. Median sold prices for single-family luxury homes rose 1.8% year-over-year and 8.0% over 2023, while attached homes saw an 8.4% year-over-year gain and a 16.5% jump compared to 2023.
  • More Inventory, More Opportunity. Luxury home inventory has reached a two-year high — up 40.4% for single-family and 42.6% for attached properties since last year. This increase is giving buyers more choice and negotiating room, but well-prepared, high-quality listings continue to command high prices.
  • Single-Family Homes Lead. Luxury single-family sales rose 1.7% year-over-year and 9.0% over 2023, confirming healthy buyer demand even as supply grows. Attached home sales softened slightly, reflecting more rate-sensitive buyers and fewer new listings.
  • Real Estate Remains a Wealth Cornerstone. Luxury real estate continues to be viewed as a safe, tangible investment. 68% of surveyed Luxury Property Specialists report that their clients are maintaining or increasing their real estate holdings, and 96% say all-cash purchases are holding steady or rising — highlighting real estate’s trusted role as a hedge during volatile times.
  • A Tale of Two Buyers. Surveyed Luxury Property Specialists are seeing two distinct buyer mindsets emerge: the “no-compromise” buyer who will pay top dollar for turnkey quality in prime locations, and the “smart” buyer who’s value-conscious and willing to consider location trade-offs or renovations if the numbers make sense.
  • Different Behaviors Across Wealth Tiers. The ultra-wealthy remain active and well-insulated by cash reserves and diverse portfolios. Meanwhile, aspirational affluent buyers are becoming more selective and price-sensitive, weighing market shifts carefully before making a move.
  • Practicality Takes Center Stage. Nearly 47% of surveyed Luxury Property Specialists expect economic uncertainty to reduce purely lifestyle-driven purchases. Buyers are focusing more on tax strategy, liquidity, and long-term value than on indulgent extras.
  • Equity Gains Create Fresh Wave of First-Time Luxury Buyers. U.S. home prices have jumped 47% in five years, generating trillions in new homeowner equity and pushing more move-up buyers into the luxury tier for the first time — a trend echoed by the growth of the so-called “Everyday Millionaire,” per UBS.
  • Generational Wealth Transfer Accelerates. A new wave of younger buyers is making its mark: 43% of surveyed Luxury Property Specialists report a rise in Millennial and Gen Z purchases, while 29% report stable or growing Gen X activity. These buyers want homes that are move-in ready, sustainable, tech-forward, and flexible for modern living.

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