1. Luxury Sales Are Leading the Market
Luxury real estate has consistently outpaced broader market segments. U.S. property sales above $1 million held the title of the fastest-growing sales category for 21 consecutive months as of February 2025. Sotheby’s International Realty reported a 9.4% sales volume growth in 2024, nearly doubling the 5.2% growth pace of the general housing market reported by NAR.
Ultra-luxury homes, priced at $10 million and above, are seeing an especially sharp rise. Between February and May 2025, sales in this category jumped by 50% in Palm Beach and 48% in Miami, as reported by The Wall Street Journal. This signals not just demand, but serious buyer confidence in the long-term value of luxury property.
2. Sales Records Continue to be Set in our High-Demand Market
While inventory levels are stabilizing in some markets, luxury home supply remains tight, especially for highly desirable properties. In Aspen, for example, the median sale price for a single-family home reached $13.4 million in 2024, up from $9.97 million in 2020. Bidding wars are common for prime properties across New York City, and even San Francisco’s high-end market is seeing strong price support due to limited supply.
3. Wealthy Buyers Remain Financially Strong
Despite market volatility earlier this year, the S&P 500 ended mid-May just 4.2% below its February record high. As a result, many affluent households are shifting capital into real estate—an asset class known for long-term stability and security.
In fact, in 2024, the top 10% of U.S. households (earning $250,000 or more) accounted for roughly 50% of all consumer spending, according to The Wall Street Journal. These financially resilient buyers are increasingly viewing real estate as a strategic hedge against economic unpredictability.
4. Cross-Border Investment Is Growing
A weaker U.S. dollar is helping reignite interest from international buyers. Realtor.com reports a notable increase in foreign searches for U.S. real estate in Q1 of 2025. At the same time, U.S.-based buyers continue to explore global opportunities, purchasing properties in Portugal, Italy, France, Spain, and tax-advantageous markets like Dubai and Switzerland.
Whether driven by lifestyle upgrades, investment diversification, or long-term security, luxury buyers are leaning into the market and reshaping it in the process. With constrained inventory, increased demand, and global interest on the rise, 2025 is proving to be a strong year for luxury real estate.
For a deeper dive, explore the full 2025 Mid-Year Luxury Outlook report by Sotheby’s International Realty here.
