Although the U.S. housing market was relatively weak in 2024, experts say the luxury sector is the outlier and expects even better conditions in 2025.
The brand’s luxury real estate experts expect more luxury buyers to re-enter the market in 2025, according to a trend report released Monday by Coldwell Banker’s Global Luxury Program. . Overall, agents surveyed say the outlook for this year is positive, supported by renewed confidence in the market. , more choice of desirable properties and more purchasing power.
The report, produced by Coldwell Banker Global Luxury in collaboration with Luxury Home Marketing Institute, Wealth-X, and Barton Consulting, defines luxury homes as properties priced in the top 10% of a given housing market. There is.
On the buyer side, 85.5% of agents surveyed said they would rate buyer market conditions in 2025 as “fair” or “good.” On the seller side, 74.5% of respondents reported a positive outlook for 2025.
Supporting this optimism, especially on the buy side, is increased inventory. According to the report, as of the end of October 2024, the inventory of luxury single-family homes increased by 14.4% year-on-year. Additionally, experts predict that inventory levels will rise further in 2025 if mortgage rates continue to fall.
The report also found that home price growth for single-family luxury properties rose 7.6% in 2024, while home prices in other markets rose 3%, supporting the 2025 outlook. It became. Properties are selling just below the asking price, and the list price sales ratio for single-family luxury homes is expected to reach 97.9% in 2024.
Agencies surveyed also reported expecting an increase in first-time luxury buyers, with 47.9% of respondents reporting an increase in first-time luxury buyers entering the market. I am. In recent years, many of these buyers have included Gen Xers. According to data from Wealth-X, luxury home ownership among Gen Xers increased by 10% between 2014 and 2024, more than any other age group.
Additionally, according to the Federal Reserve’s 2023 study, 53.4% of wealthy homebuyers in 2023 will be Generation X. However, baby boomers still control more than 50% of the luxury home ownership market share.
Coldwell Banker luxury experts report that Gen X buyers are prioritizing location and turnkey properties in their home search. We’re also interested in properties that offer access to experiences, such as walking distance to cultural centers or beautiful scenery.
For generations, luxury buyers have prioritized indoor/outdoor living, with more than 60% of agents surveyed citing indoor/outdoor living as one of the most popular luxury design features among their clients. Masu. This is an increase of 10 percentage points compared to a year ago.
Many luxury buyers are also interested in multigenerational living. According to the report, 45% of agents surveyed said flexible layouts were the most important design feature among their clients. Desirable amenities include a first-floor in-law suite, loft or alcove, open floor plan, extended family space, and accessory dwelling unit (ADU).
According to Coldwell Banker Luxury Specialists, other popular design features include minimalist aesthetics (39.2%), unique architectural details and statement elements (21.9%), and sustainable/eco-friendly design ( 20.8%).
While Gen X may be changing generational trends, women are also buying luxury goods more frequently, bucking trends from previous generations. Women with a net worth of $5 million or more currently own about 15% of luxury real estate in the United States, according to data from Wealth-X. Additionally, 95% of wealthy buyers reported that women, whether married or single, share decision-making or take the lead when purchasing luxury real estate.
While typical destinations for second homes and luxury properties, such as New York and London, remain popular, many wealthy individuals are now bypassing these cities to places such as Miami, Dubai, Singapore, Melbourne, and Lisbon. We are aiming for
Buyers are drawn to these cities for a variety of reasons, including lower taxes, a more desirable climate, economic opportunities and lifestyle preferences, according to data from Coldwell Banker and Burton Consulting. Nationally (in addition to Miami), Austin, Houston, and Scottsdale, Arizona are becoming increasingly popular among luxury buyers because they offer better value than other destinations.
When it comes to lakeside living in particular, Alabama-based Lake Homes Realty also predicts a strong market in 2025. In a report released Tuesday, the brokerage said it expects lakefront homes to grow at least 15% year over year. The company attributes this optimism to demand remaining strong and more owners preparing to sell after many markets suffered from high prices in 2024. are.
Lake Norman, North Carolina, has so far reported that Lake Norman, North Carolina, is leading the way in the market offering buyers the most selection of properties for the 2024-2025 winter season. Followed by Puget Sound, Washington. Lake Tahoe, Nevada. Lake Washington, Washington. and Lake Michigan, Illinois.
