MID-YEAR MARKET ANALYSIS
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Sold Prices Are Consistently Rising. Luxury single-family median sold prices climbed 1.8% year-over-year and 8.0% over 2023. Luxury attached median sold prices rose 8.4% year-over-year and 16.5% compared to 2023, likely driven by demand for premium condos in trophy locations like New York City and Los Angeles. Median sold prices now stand at $1.7 million for luxury single-family homes and $1.25 million for luxury attached.
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Inventory Reaches Two-Year High. Compared to 2023, luxury single-family inventory is up 40.4% and attached inventory is up 42.6%. This, when measured against rising sold prices, highlights an anomaly: rising inventory is not causing widespread price reductions for high-demand properties, where the majority of sales are happening.
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Strong Fundamentals Bolster the Luxury Market, Led by Single-Family Homes. Sales activity remains healthy: single-family home sales climbed 1.7% year-over-year and 9.0% compared to 2023, reflecting steady demand despite greater supply. The attached segment did show softening in sales, likely due to more rate-sensitive buyers and less new inventory growth.
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Market Trending Toward Balance. Days on Market (DOM) remains stable at 31 days (single-family) and 28 days (attached). Sale-to-list ratios are holding strong at 98.1% (single-family) and 98.6% (attached), while actions pending dipped to 17.2% (single-family) and 13.9% (attached) – signaling more negotiation room but no signs of distress.
CURRENT DRIVERS TO WATCH
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Real Estate Remains a Cornerstone. Over 68% of surveyed Luxury Property Specialists say affluent clients are maintaining or increasing their interest in real estate as an investment strategy. This is particularly true among increasing all-cash purchases — underscoring real estate as a trusted hedge amid stock market volatility.
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Two Buyer Profiles Are Emerging. Market dynamics point to a "tale of two buyers," per surveyed Luxury Property Specialists: the “no-compromise buyer,” who is still willing to pay a premium but only for high-quality properties in prime real estate locations; and the “smart buyer,” more value-conscious and open to trade-offs in location, amenities, or renovation needs — as long as the numbers make sense.
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Behavioral Divides Between Wealth Brackets. When asked about the top trends of the luxury market, a significant number of Luxury Property Specialists noted that buyers across different wealth tiers are navigating the market with different mindsets. Buyers at the upper end of the wealth spectrum — often seasoned investors — appear to be more active and ready to transact, while aspirational wealthy buyers are showing more caution and price sensitivity as they weigh economic factors and long-term value.
FUTURE DRIVERS TO WATCH
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Practicality Prevails. Almost 74% of Luxury Property Specialists expect economic uncertainty to reduce lifestyle-driven or speculative buys, as buyers focus more on practical factors like tax benefits, location, and resale value.
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Equity Gains Are Elevating Luxury Buyers. U.S. home prices have risen 47% over the past five years (NAR, March 2025), generating $12 trillion in homeowner equity and propelling many upper-middle-income buyers into the luxury tier.
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The Generational Wealth Transfer Is Accelerating. About 29.2% of surveyed Luxury Property Specialists see a rise in Gen X activity, while 43.2% reported increased Millennial and Gen Z buying — ushering in new luxury priorities focused on turnkey quality, sustainability, tech, and mental wellness.
