The luxury real estate market is showing resilience as we move into summer 2025, with prices remaining firm despite a noticeable slowdown in activity; this reflects stability, not weakness, in a cautious economic environment.

Read the full North American Luxury Review to learn more.

In this month’s report we review:

◆ May, typically a strong month, delivered mixed results—condo and townhome pending sales fell 12%, while single-family home sales were far more stable,  dipping only 2.9% year-over-year and even showing month-over-month gains.

◆ Inventory is up but not dramatically—single-family homes saw a 30.3% year-over-year increase in available listings, but new listings rose just 18.3%, revealing that sellers are testing the market cautiously rather than flooding it. >

◆ Despite slower activity, prices are holding or rising—single-family values are up 2.2% and condos/townhomes by 1.4% year-over-year, twice the rate of the broader market, with demand and limited inventory continuing to apply upward pressure. 

◆ High-net-worth individuals are more sensitive to macroeconomic cues than interest rates, responding to stock performance, currency shifts, and geopolitical signals rather than mortgage costs, leading to a strategic, patient buying approach. 

◆ While luxury real estate isn’t the highest-yielding asset, it remains a cornerstone for wealth preservation, offering diversification, tangible utility, and emotional value that stocks and digital assets simply can’t provide. 

◆ Luxury homes serve not only as investments but as sanctuaries—places to live, work, retreat, and recharge—making them appealing as long-term holds, especially in times of volatility or uncertainty. 

◆ The market is in a holding pattern, not a downturn; with strong fundamentals, tight inventory, and lifestyle-driven demand, momentum may return in the second half of 2025, but decisions will continue to be highly intentional. 

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.