January 2026 Luxury Market Report: A Balanced Start to the Year

A Resilient Finish for North America’s Luxury Market

December 2025 delivered an unexpected yet compelling close to the year for North America’s luxury real estate market. After November’s data briefly suggested a potential softening, with year-over-year declines compared to November 2024, December decisively reversed that course.

A Strong Finish That Defied Seasonality

Luxury home sales strengthened across both property types in December. Single-family luxury transactions rose 7.8% year-over-year, while attached luxury properties recorded a 4.1% annual increase. Month-over-month performance was even more telling: sales climbed 9.4% for single-family homes and surged 15.9% for attached properties compared to November.

This pattern runs counter to traditional seasonality, when luxury activity typically cools from October through January before reaccelerating in the spring. December’s performance, exceeding even November 2024 sales levels, underscored that buyer demand remained active well into year-end.

Pricing trends reflected healthy but disciplined appreciation. Median sold prices increased year-over-year by 3.9% for single-family homes and 2.7% for attached properties. Month-over-month, single-family prices edged higher by 0.9%, although attached properties saw a modest 2.0% decline.

Inventory Expands as Sellers Stay Selective

Declining interest rates not only supported sales but also inventory growth. Year-over-year inventory levels rose 10.2% for single-family luxury homes and 5.3% for attached properties, giving buyers greater choice and confidence.

However, new listing activity revealed a more nuanced seller mindset. While new single-family listings increased 4.6% year-over-year, they declined month-over-month, indicating that detached homeowners remained cautious despite improved conditions. Attached-home sellers were even more restrained, with new listings down both year-over-year and month-over-month—even as buyers increasingly targeted perceived value opportunities in that segment.

A Market Closing the Year in Balance

Taken together, these indicators confirm that the luxury market ended 2025 with resilience and structural balance. For the full year, single-family luxury sales outperformed 2024 by 6.1%. Attached sales, though still slightly below prior-year levels, steadily closed the gap, narrowing from a 2.7% differential in September to just 1.6% by December.

Market balance metrics reinforced this trend. Single-family luxury remained firmly in seller’s market territory, while attached properties moved closer to the threshold between balanced and seller-favored conditions. Importantly, this shift reflected improving absorption rather than constrained supply, an encouraging signal heading into 2026.

Demand Becomes More Strategic and Purpose-Driven

By the end of 2025, luxury demand across North America had become less homogenous. Ultra-high-net-worth buyers continued to dominate the top tier, using luxury real estate for capital preservation, diversification, and long-term flexibility - often deploying cash to maintain leverage.

Meanwhile, newly affluent and move-up buyers reshaped the mid-luxury segment. Highly informed and value-conscious, these buyers prioritized design quality, location, and lifestyle functionality over headline pricing.

Across generations, demand increasingly favored pragmatic luxury; homes supporting hybrid work, multigenerational living, and everyday quality of life rather than symbolic excess. 

Local Nuance Meets Global Influence

Luxury market performance diverged meaningfully at the local level in 2025. Inventory levels, pricing power, and buyer urgency varied by region, driven by local economic conditions, migration patterns, and lifestyle appeal.

Simultaneously, global forces played a larger role. Cross-border capital flows, geopolitical uncertainty, currency dynamics, and lifestyle mobility shaped buyer and seller strategies.

Technology further amplified this reach, with digital marketing, virtual experiences, and remote transactions expanding access to international buyers and intensifying competition for well-positioned assets.

Entering 2026 from a Position of Strength

As the market moves into 2026, luxury real estate decision-making is guided by a blend of macroeconomic awareness, lifestyle priorities, and strategic planning. Balanced sales, expanding inventory, and resilient pricing provide a foundation for measured growth rather than speculative momentum.

Luxury real estate has evolved beyond transactional dynamics. It now sits at the intersection of lifestyle optimization, investment strategy, and experiential value, where the most compelling properties deliver far more than square footage and price alone.

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