Luxury Market Continues to Grow
In early 2025, luxury homes saw stable demand, making up 7.5% of sales, up from 5% in February 2023. Listings under $1M took 64 days to sell and over $1M took 75 days.
NEW YORK — Realtor.com found that in 2024's fourth quarter, the total value of private real estate reached $48.1 trillion, a 7% increase from the previous year and nearly double the value since 2016, according to Federal Reserve data.
Homeowner equity reached $34.7 trillion by the end of last year, a year-over-year increase of 8.8%. Federal Reserve data also show that home mortgages increased to $13.3 trillion. These value gains, however, benefited the top 10% of households the most, even though real estate only accounted for 18.7% of their financial assets in 2024.
According to Realtor.com's report, "In the first quarter of 2025, the market saw not only a new record high, but also a sizable retreat from it as markets grappled with on-again-off-again tariffs and uncertainty over the impact of the Trump administration's policy decisions."
Despite initial volatility at the start of 2025, demand for luxury homes was stable in the first quarter and outperformed the broader market. Houses priced at more than $1 million accounted for a smaller portion of the market but a larger share of sales, with higher-end homes accounting for 12.8% of listings in 2025's first quarter.
That was down slightly from 2024's first quarter when luxury homes accounted for 13.6% of listings.
About 7.5% of sales in February 2025 were luxury homes, up from 5% of sales in February 2023. Homes under $1 million took 64 days to sell in February, up from 58 days, and 22% experienced a price cut this February, up from 20%. Meanwhile, houses priced higher than $1 million took 75 days to sell in February, but 13.6% had their prices cut.
Source: Mansion Global (04/10/2025) Gourarie, Chava
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