In fact, a recent poll of 200 agents focused on expensive properties finds that luxury real estate is hot. It continues to hold up under the weight of new and persistent economic headwinds. Even with substantive worries over trade wars and recession, ultra-wealthy buyers are going places. People with a net worth of over $30 million are the ones buying in the millions.
In the first five months of 2025, the median sales price of high-end single-family homes was $1.7 million. At the same time, luxury-attached properties were priced at a median $1.25 million. The underlying data would indicate that the overall luxury home sales market is strong, showing positive sales growth during this time frame. Now, in mid-April, the financial markets are reeling. These factors contributed to a 70 percent drop in sales by May 2025.
Jason Waugh, president of Coldwell Banker Affiliates, noted that more than half of the surveyed agents observed a slight or substantial increase in cash purchases by clients this year. About 3.9% said they had seen a drop in cash transactions, but 45.4% said the number of cash purchases has not changed.
… just look at the real estate deal, interest rates are high and loan money is tight. He stated, “It’s been a roller coaster, and the business is cyclical. I think at the end of the day, real estate is a hard asset that can preserve wealth and is a hedge against inflation.”
High-interest rates are actually a big factor driving luxury home sales, Waugh said. Especially as clients figure out their own path in the new rate environment, they are more deliberate in their purchasing decisions, and rightfully so. Waugh added, “They may be stretching themselves, given the current rate environment, so they’re going to be a lot more discerning in terms of evaluating where they live, the amenities, the condition of the property at move-in.”
The new norm of cash purchases further underscored the benefits buyers see in liquidity. Waugh remarked, “Cash provides a buyer with control. It provides leverage, speed and security.” This feeling really highlights the luxury that rich buyers feel they have in cash as they move through today’s up and down market.
It’s especially important to note that first-time luxury buyers are extremely choosy this year. Agents report seeing an uptick in clients opting to reduce list prices compared to previous years, reflecting a more cautious approach to buying decisions amid economic fluctuations.
While the luxury real estate market is recalibrating to reflect new realities, agents are hopeful about the market’s long-term health. The net increase in luxury home sales is a positive sign, showing that despite the hurdles there are still noteworthy opportunities to grow.