Luxury Real Estate Market 2025: Stability, Selectivity, and Buyer Trends

In this month’s Luxury Market Report, The Institute explores the evolving landscape of North America’s high-end real estate. The findings reveal a market neither rushing ahead nor retreating but refining itself - where quality takes precedence over quantity, and both buyers and sellers are engaging with greater precision and purpose.

Stability Meets Selectivity

Single-family estates are holding strong, showing modest gains, while the attached market of condominiums and townhomes is moving at a slower, more deliberate pace. Affluent buyers are still active, but they are taking their time, scrutinizing every detail, and prioritizing lifestyle alignment over speed. Sellers, in turn, are learning that success depends on delivering homes that truly meet these exacting standards.

Single-Family Homes Hold Their Ground

July sales outperformed the past two years - up nearly 4% from 2023 and more than 15% from 2024. Inventory is up, offering more choice, but prices remain stable around $1.3 million, underscoring the enduring value of properties that meet luxury expectations. The shift lies in the pace - homes are taking 20% longer to sell, giving buyers room to evaluate multiple options.

Attached Properties: Selective Demand

In contrast, attached luxury properties have seen sales dip just over 9% year-over-year. Inventory is higher, but new listing growth has slowed as sellers wait for clearer signals of demand. Prices, however, have remained steady, with buyers still willing to pay for the right home, while those that miss the mark linger on the market.

A Market in Balance

The luxury market is in what could be called a refined equilibrium. Single-family properties are likely to maintain demand, supported by stable prices and growing inventory, even as timelines lengthen. The attached market may face continued sales headwinds, but values are holding.

In 2025, quality will remain the ultimate differentiator. Sellers who align their offerings with the evolving tastes and lifestyles of affluent buyers will be best positioned for success.

Why Inventory Doesn’t Tell the Whole Story

More listings do not automatically mean better opportunities – especially in the luxury market. Today’s high-net-worth buyers expect exclusivity, architectural distinction, sustainability, and exceptional craftsmanship. Homes that fall short are now recognizing that they need to be repositioned, either through strategic pricing or enhanced presentation, before attracting serious interest.

Prices Hold Firm Despite More Supply

In many markets, more inventory pushes prices down. Not so in the luxury sector. According to Zillow, the top 10% of the market saw a year-over-year 2.7% rise in median sold price in June, even with inventory in some areas up 35%. In July, well-positioned homes sold for about 98% of their list price, proof that demand for the right property remains strong.

The New Buyer Mindset

Today’s luxury buyer is both strategic and emotional. They expect expert market insight, innovative marketing, and technology-driven previews to streamline their search. For them, a home is not just a financial investment, it’s a sanctuary and a statement of their lifestyle choices.

Click here to see the Institute’s full report. 

Ready to Sell or Buy Your Luxury Home?

Now more than ever, working with a trusted luxury real estate agent is essential. A seasoned advisor can help you navigate this multifaceted market, set realistic expectations, and make informed decisions that align with your goals. Click here to find a qualified luxury real estate professional in your area.