The Mid-Year Report 2025

The Mid-Year Report 2025 picks up where The Trend Report left off, adding fresh insights and a real-time check on how the year’s predictions are playing out. Backed by new market data from the Institute for Luxury Home Marketing and an exclusive survey of Global Luxury Property Specialists worldwide, the Mid-Year Report sheds new light on January’s forecasts and highlights key trends to watch — both in the coming months and beyond.

What's inside the Mid-Year 2025 Report: 

• A Market Holding Strong. Despite continued economic uncertainty, luxury real estate showed notable resilience in the first half of 2025 — with prices continuing their steady climb. Median sold prices for single-family luxury homes rose 1.8% year-over-year and 8.0% over 2023, while attached homes saw an 8.4% year-over-year gain and a 16.5% jump compared to 2023.

• More Inventory, More Opportunity. Luxury home inventory has reached a two-year high — up 40.4% for single-family and 42.6% for attached properties since last year. This increase is giving buyers more choice and negotiating room, but well-prepared, high-quality listings continue to command high prices.

• Single-Family Homes Lead. Luxury single-family sales rose 1.7% year-over-year and 9.0% over 2023, confirming healthy buyer demand even as supply grows. Attached home sales softened slightly, reflecting more rate-sensitive buyers and fewer new listings.

• Real Estate Remains a Wealth Cornerstone. Luxury real estate continues to be viewed as a safe, tangible investment. 68% of surveyed Luxury Property Specialists report that their clients are maintaining or increasing their real estate holdings, and 96% say all-cash purchases are holding steady or rising — highlighting real estate’s trusted role as a hedge during volatile times.

• A Tale of Two Buyers. Surveyed Luxury Property Specialists are seeing two distinct buyer mindsets emerge: the “no-compromise” buyer who will pay top dollar for turnkey quality in prime locations, and the “smart” buyer who’s value-conscious and willing to consider location trade-offs or renovations if the numbers make sense.

• Different Behaviors Across Wealth Tiers. The ultra-wealthy remain active and well-insulated by cash reserves and diverse portfolios. Meanwhile, aspirational affluent buyers are becoming more selective and price-sensitive, weighing market shifts carefully before making a move.

• Practicality Takes Center Stage. Nearly 47% of surveyed Luxury Property Specialists expect economic uncertainty to reduce purely lifestyle-driven purchases. Buyers are focusing more on tax strategy, liquidity, and long-term value than on indulgent extras.

• Equity Gains Create Fresh Wave of First-Time Luxury Buyers. U.S. home prices have jumped 47% in five years, generating trillions in new homeowner equity and pushing more move-up buyers into the luxury tier for the first time — a trend echoed by the growth of the so-called “Everyday Millionaire,” per UBS.

• Generational Wealth Transfer Accelerates. A new wave of younger buyers is making its mark: 43% of surveyed Luxury Property Specialists report a rise in Millennial and Gen Z purchases, while 29% report stable or growing Gen X activity. These buyers want homes that are move-in ready, sustainable, tech-forward, and flexible for modern living.