The luxury real estate market in North America is evolving rapidly, driven by demographic shifts, changing buyer preferences, and economic factors. As we step into 2025, industry experts foresee a dynamic landscape shaped by new affluent demographics, increased inventory, and a moderation in price appreciation.

In this month’s report we review:

The report is a guide to the luxury real estate market in North American. It provides an overall analysis with trends and highlights comparative data on the top residential markets throughout Canada and the United States. 

∙This month’s report displays the market statistics for North America month over month as well as the 13-month trend. 

∙Sales are increasing, with January 2025 seeing a 17.6% rise in detached home sales and a 12.7% increase in condos and townhomes.   

∙More inventory is becoming available as sellers capitalize on pent-up demand.   

∙The market is expected to polarize, with ultra-high-net-worth individuals driving high-end demand while mid-tier buyers remain cautious due to high interest rates.   

∙Major cities like New York, Miami, Los Angeles, Toronto, Vancouver, and Montreal continue to attract affluent buyers.   

∙However, regional dynamics will play an increasingly significant role as factors such as environmental concerns, affordability and high-tax markets shift buyer preferences. 

∙Affluent millennials are investing in luxury real estate as both a lifestyle choice and financial asset.   

∙Women are playing a growing role in high-end transactions, prioritizing resale value, security, and modern amenities.   

∙Gen-X buyers are increasingly focused on asset diversification and view real estate as a hedge against economic instability.   

∙Luxury home inventory is rising, with a 14.4% year-over-year increase in detached homes.   

∙The market is stabilizing, with price appreciation slowing and creating a more balanced environment.   

∙Cash buyers are dominating the high-end market as high interest rates make borrowing more expensive.   

∙The industry will continue adapting to evolving buyer preferences, economic shifts, and regional dynamics throughout 2025. 

∙For homeowners looking to sell or buy their luxury home in today’s market we recommend working with a realtor who can provide you with critical knowledge about your local market, maintain a high level of security during the transaction and knows how to leverage technology to provide maximum exposure and assistance.   

∙It is my responsibility as your REALTOR to ensure that when others around you are lowering their expectations, that this becomes the time for us to switch gears and discover how to leverage the market effectively to achieve your goals.