Why Luxury Single-Family Homes and Condos Are Moving in Different Directions
10/21/2026
For most of 2026, North American luxury real estate has been defined by a single tension: buyers kept buying while the supply of homes kept shrinking.
September offered the clearest sign yet that this tension is easing. According to the October edition of The Institute for Luxury Home Marketing's Luxury Market Report, single-family luxury inventory rose 0.2% year over year, the first comparative increase of 2026.
But the bigger story isn't that the market is rebalancing. It's that single-family homes and attached properties are rebalancing in very different ways.
Single-Family Supply Has Stopped Shrinking. Sellers Still Hold the Advantage.
Single-family luxury sales rose 3.5% compared with September 2025, a clear slowdown from the 9.8% growth recorded in July. Inventory edged up 0.2%, and new listings rose 2.0%.
The third quarter shows the same pattern. Sales were up 5.2% year over year while inventory was 1.4% lower. That gap is much narrower than in the second quarter, when sales grew 11.2% and inventory fell 4.9%.
That looks like a market moving toward balance. A closer look suggests it isn't there yet.
Single-family luxury homes sold in a median of 32 days, three days faster than a year ago. The sales ratio, which measures how much of the available inventory sold during the month, rose to 21.88% from 21.20%. That keeps the segment in seller's-market territory by the Institute's measure. Homes continued to sell for about 98% of their list price, essentially unchanged from last year.
What has changed is the direction of supply, not the balance of power. More owners are listing, and for now buyers appear to be absorbing those listings about as quickly as they arrive.
That difference matters in client conversations. Telling a seller the market is "rebalancing" can suggest a loss of leverage the data doesn't yet show. Telling a buyer that more inventory means easier negotiations can set expectations the most desirable homes won't meet.
The Condo Market Is Softening on the Demand Side
Attached luxury properties, meaning condominiums and townhomes, tell a different story.
September sales fell 7.6% year over year. That decline didn't come from a glut of supply. Inventory was 3.1% lower than a year ago, and new listings fell 3.9%. Fewer buyers acted, and fewer owners chose to sell.
The third quarter was nearly flat, with sales up 0.9% and inventory down 4.2%. The segment's sales ratio slipped to 16.18% from 16.96%, which keeps attached luxury in balanced territory.
Prices have held up. The median attached sale price was roughly 5% higher than last September, properties sold at a median 98.22% of list price, and days on market were unchanged at 32. Some of that price strength may reflect which properties sold rather than broad appreciation. Still, this doesn't look like a segment where sellers are cutting prices to find buyers.
One reasonable reading: the attached market is sorting itself out property by property, and building by building.
In Condos, the Building Is Now Part of the Property
For attached buyers, the decision increasingly extends beyond the unit itself. Association fees, special assessments, insurance costs and the financial health of the building can all change what a condo actually costs to own.
That helps explain the uneven picture. A well-managed building in a prime location, with healthy reserves and predictable costs, may continue to draw strong interest. A comparable unit in a building facing rising fees or major repairs may meet real resistance, even in the same neighborhood and price range.
For agents, headline condo statistics are a starting point, not a pricing strategy. Before listing or advising on an attached property, it pays to understand the building's reserves, recent and planned assessments, insurance coverage and fee history, because buyers and their advisors will ask.
Wealth Doesn't Remove the Cost Question
Affluent buyers have more flexibility than most, but the report notes they are not insulated from borrowing costs, market volatility or economic uncertainty. Even cash buyers weigh what their capital could earn elsewhere.
Ongoing ownership costs are part of the same calculation. Property taxes, insurance, utilities, maintenance, staffing and the expense of running more than one residence rarely stop a purchase on their own. They can, however, shape its timing and terms, and they give buyers more reasons to negotiate on properties that need work.
What This Means for Sellers and Buyers
Single-family sellers still have a favorable market, but rising supply means more competition for attention. Condition, location, land and lifestyle appeal will increasingly separate homes that sell quickly from those that sit, especially if new listings keep growing through the fall.
Attached sellers should expect buyers to examine the building as closely as the unit. Gathering association financials, assessment history and insurance details before listing can remove uncertainty that would otherwise come up in negotiations.
Single-family buyers may see a little more choice, but not necessarily more leverage on the most desirable homes.
Attached buyers may find more room to negotiate and more time for due diligence. Well-run buildings in sought-after locations are still likely to draw competition.
What to Watch as 2026 Closes
Three signals will show whether September was a turning point or a pause:
- Whether single-family new listings keep rising, and whether sales keep pace with them
- Whether attached sales stabilize as buyers adjust to the full cost of ownership
- Whether single-family sales ratios and days on market begin moving toward balanced levels
Luxury real estate isn't one market. Rebalancing isn't happening evenly. It's happening one property type at a time, and in the condo market, one building at a time.
View the October 2026 Luxury Market Report for the full North American data, including trends by property type and local market performance.
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