What’s Driving Stability in Today’s Luxury Real Estate Market

The North American luxury real estate market has entered a period of calm confidence. One defined not by surges or slumps, but by balance and maturity.

The Institute’s November Luxury Market Report underscores this stability. Both single-family and attached luxury home sales rose year-over-year and month-over-month, signaling healthy demand. Listing inventory continues to expand gradually, giving buyers more choice, while sellers remain disciplined on pricing.

Together, these factors tell a clear story: luxury real estate has settled into a healthy, more sustainable rhythm.

Single-Family Homes:

Steady Growth and Seasonal Balance

Luxury single-family homes continued their steady climb in October, with sales up 9.9% year-over-year and 6.5% month-over-month, reinforcing 2025’s stronger momentum in comparison to 2024. Inventory rose 14.6% from last year but eased slightly from September as faster sales absorbed supply.

Despite recent rate cuts, new listings dipped 7.3% month-over-month, showing sellers remain strategic. Yet confidence has improved substantially from last year, with new listings up over 14% in October. Prices held firm, with the median down just 0.7% and the sales-to-list ratio edging from 98.2% to 97.8%. These minor shifts reflect seasonality, not softness. The result is a balanced, mature market marked by steady demand and disciplined pricing.

Condos/Townhomes/Apartments:

Gradual Rebound

Condos and townhomes are also regaining traction. Luxury attached sales rose 3% year-over-year and 2.2% month-over-month in October, narrowing the sales gap from earlier in the year. Inventory rose 10.5% from 2024, but just 0.3% since September, showing a similar pattern of stronger sales absorbing new supply.

Prices saw more variation, with the median sold price down 7.35% year-over-year - though this likely reflects a shift in the types of properties being sold rather than a decline in value. With interest rates easing, more buyers are transacting in the lower range of the luxury segment, rebalancing a market that had been dominated by ultra-luxury sales.

Encouragingly, the sales-to-list ratio ticked up slightly to 98.3%, showing that sellers are still achieving near-asking prices. Confidence is clearly returning, even if not yet at full strength.

A Tale of Two Markets

While the overall picture is one of balance, performance remains uneven across regions. Some luxury markets continue to experience tight inventory and strong demand, while others see longer days on market and more cautious buyer behavior.

This “tale of two cities” dynamic underscores that demand in today’s luxury market is increasingly local.

Key Drivers Behind Divergent Outcomes:

Wealth Migration 

continues to reshape demand patterns. High-net-worth individuals are relocating for lifestyle, tax efficiency, and opportunity. Markets with inbound wealth flows see firm prices and active demand, while those losing affluent residents face softer conditions as their value proposition no longer aligns as strongly with the priorities of today’s luxury buyers.

Lifestyle evolution

continues to be a powerful driver. Today’s affluent buyers increasingly prioritise markets that offer wellness, climate stability, nature, and flexibility over traditional ties to corporate hubs. The surge in demand for branded residences, resort-style amenities, and truly distinctive properties - alongside growing sustainability expectations - has permanently raised the bar of luxury buyer expectations and impacted their choice of location.

Supply and Product Quality

Supply-constrained areas maintain price strength, while those with abundant new developments, especially in the condo segment, are seeing slower absorption. Cities that have reinvested in cultural and lifestyle amenities are drawing affluent residents back, while resort and suburban enclaves continue to thrive.

Confidence 

Finally, Confidence remains the intangible but decisive element. Affluent buyers have the means to purchase at any time, but sentiment dictates when and where they act. Markets that project economic and political stability, safety, and long-term value are more likely to inspire trust and, therefore, transactions.

North America’s luxury real estate market has matured into a stable, segmented, and confidence-driven environment. Broadly, it is balanced and sustainable, however, beneath that stability lies the nuance of local dynamics, lifestyle shifts, and evolving buyer psychology.

Click here to see the Institute’s full report. 

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