The luxury real estate market isn’t cooling—it’s recalibrating. Strategic, data-driven decisions will define success in the months ahead.

Read the full North American Luxury Review to learn more.

The report reviews the last six months as we hit the mid-point of 2025 and outlines some trends as well as possible future expectations.

In this month’s report we review:

Despite economic uncertainty and interest rate concerns, the luxury market has remained steady with strong pricing, strategic buyer behavior, and increased inventory as a whole over the last six months. 

◆ January saw single-family sales up 17.6% year-over-year and attached homes up 12.7%. New listings for single-family homes rose 33%, boosting market confidence. 

◆ March marked a rebound with single-family sales jumping 40% from February. 

◆ Sales slowed in April and May, with May single-family sales down 2.9% and attached homes down 11.9%. Inventory increased—up over 30% for single-family and 23.5% for attached homes—while new listings grew more modestly, reflecting seller hesitation. 

◆ In June, single-family sales rose 11% year-over-year; attached sales remained flat at 0.6%. Median sold prices increased: +1.6% for single-family homes and +6.4% for attached. Time on market rose 23%, showing a more cautious, financially strategic buyer mindset. 

BUYER BEHAVIOR:

◆ Buyers are focused on value, location, and long-term lifestyle fit. 

◆ Cash transactions and equity-based financing remain dominant due to high borrowing 
costs. 

OUTLOOK FOR H2 2025: 

◆ Interest rates will be the key market driver—rate cuts could prompt new listings and unlock buyer demand. 

◆ Buyers will continue prioritizing wellness features, flexible layouts, and move-in-ready quality. 

◆ Second-home and low-tax markets remain strong, while Gen X and millennials show renewed interest in urban cores. 

◆ Demand is rising for homes with renovation potential due to high equity and aging inventory. 

◆ Time on market may remain elevated, but pricing is expected to stay firm. 

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.