Luxury Real Estate Market Outlook 2025 | Why the Wealthy Are Still Buying
- Sarah Breck
- Jul 18
- 3 min read
Updated: 2 days ago
By Sarah Breck — Boise real estate agent helping buyers, sellers, and relocators make confident moves with strategy, savvy, and a human touch.
Despite ongoing geopolitical tension and economic uncertainty, the luxury real estate market in 2025 is proving surprisingly resilient—and even outperforming other residential sectors.
Sotheby’s International Realty just released their Mid-Year Luxury Outlook Report, and the takeaway is clear: high-end homes are still commanding top dollar, attracting global wealth, and offering stability in an unstable world.
In this post, we’ll break down the most important insights for buyers, sellers, and investors watching the luxury market this year.
Luxury Home Sales Are Outpacing the Rest of the Market
According to Realtor.com, homes priced over $1 million were the fastest-growing sales segment for 21 consecutive months as of February 2025. That trend mirrored Sotheby’s own success—reporting a 9.4% sales volume increase in 2024, compared to the 5.2% market-wide average cited by NAR.
Even ultra-luxury homes—$10 million and up—are seeing major momentum. In Florida, sales jumped 50% in Palm Beach and 48% in Miami year-over-year (Wall Street Journal, May 2025).
Low Inventory Means Higher Prices
While some metro areas are seeing more listings, luxury housing inventory remains tight in many major markets. That scarcity is helping push prices even higher.
In Aspen, the median single-family home price rose to $13.4 million in 2024, up from $9.97 million in 2020.
In New York City, bidding wars are happening for homes from $2M to $10M+.
Even San Francisco, which saw a slowdown in previous years, is experiencing price stability due to limited supply of prime properties.
Wealthy Buyers Remain Active (And Confident)
In 2024, the S&P 500 surged 23%, giving high-net-worth individuals more room to play—and they’re spending some of that wealth on real estate.
Though the stock market dipped in April 2025, it bounced back by mid-May, recovering most of its losses (Associated Press). That kind of volatility only fuels the appeal of real estate as a stable, tangible investment.
Global Buyers Are Coming Back
A weaker U.S. dollar in 2025 has reignited interest from foreign buyers, who had pulled back during 2024’s stronger-dollar phase. Realtor.com reports international searches for U.S. property spiked in Q1 of this year.
Meanwhile, American luxury buyers are scooping up homes overseas—in Italy, Portugal, Spain, the U.K., and tax-friendly destinations like Dubai, Malta, and Switzerland.
Why the Luxury Real Estate Market 2025 Remains a Safe Haven
Here’s the big picture: luxury homes aren’t just lifestyle purchases—they’re wealth preservation tools. Whether it’s the limited inventory, ongoing global interest, or market resilience, the luxury real estate market in 2025 continues to attract serious investment.
Philip White, CEO of Sotheby’s International Realty, put it best:
“High-net-worth buyers remain actively engaged, particularly in the ultra-luxury real estate segment where unique properties command premium prices.”
Thinking About Buying or Selling Luxury in Boise?
The national numbers are compelling, but what does it mean for luxury homes right here in Boise and the Treasure Valley?
If you're considering listing a high-end home, or looking for your own investment property or dream home, let’s chat about how to position you for success in this competitive space.
📥 Download my free Boise Home Seller Guide here
About Sarah – With over 16 years of entrepreneurial experience, Sarah blends grace, grit, and expert guidance to create a real estate experience that’s as strategic as it is personal. Passionate about empowering her clients—especially first-time buyers and women—she’s dedicated to turning complex market moves into confident, seamless transitions in Boise and the Treasure Valley.