According to the Institute for Luxury Home Marketing’s October’s 2025 Luxury Market Report the luxury real estate market is one of balance, maturity and steadily rising confidence.
A market holding steady—by design
October’s performance underscored that the luxury sector is neither overheating nor cooling. Instead, it is functioning with a level of equilibrium that suggests sustainability.
Luxury sales rose year-over-year and month-over-month across both single-family and attached segments. Inventory is expanding gradually, offering clients more choice without eroding price integrity. The sales-to-list ratio remains near 98%, signaling that pricing discipline on both sides of the transaction is holding firm.
For industry professionals, this environment rewards data-driven pricing strategies and client education rooted in market fundamentals rather than short-term sentiment.
Single-family luxury: stable strength with natural seasonality
The single-family luxury segment delivered another month of healthy growth:
- Sales up 9.9% YOY and 6.5% MOM
- Inventory up 14.6% YOY
- Median price nearly flat at –0.7% YOY
While new listings declined month-to-month, the drop reflects typical seasonal moderation rather than a structural slowdown. On an annual basis, seller confidence remains higher than last year, and buyers continue to transact at market-aligned pricing.
Professionals should highlight to clients that the slight cooling in new inventory is not indicative of weakening conditions but of cyclical patterns in a fundamentally resilient segment.
Attached luxury: rebalancing and recovering confidence
The luxury condo and townhome market is also steadily regaining ground. October marked its second consecutive month of sales growth, narrowing the year-to-date gap with 2024.
A notable shift is taking place in buyer composition: with interest rates easing, more consumers are entering the lower end of the luxury attached market. This has pulled median prices down 7.35% YOY, but this reflects mix, not weakness, as the sales-to-list ratio actually ticked up.
For agents, this presents a tactical opportunity: renewed activity at the entry-luxury level often precedes broader momentum. Buyers who were price- and mortgage rate-sensitive months ago are now re-engaging.
A tale of two cities—why hyperlocal knowledge matters
While the overall North American luxury market is demonstrating renewed balance, rising sales and gradually expanding choice for buyers, the reality at the local level remains far more nuanced.
Some markets, typically those with entrenched lifestyle appeal, strong wealth inflows and constrained supply, are behaving like classic seller markets. Others are seeing longer days on market and more selective buyers, especially where inventory has outpaced demand.
For brokerages, this reinforces the importance of more granular local intelligence.
Key forces every luxury professional should be tracking
Several powerful trends are shaping today’s segmentation:
- Wealth migration
High-net-worth households continue to redistribute across North America, with location choices driven by taxes, climate, lifestyle and business opportunities. Markets gaining affluent residents are experiencing stability and upward price pressure; those losing them are seeing softer conditions.
- Lifestyle evolution
Affluent buyers now prioritize wellness, climate stability, nature and locations that provide easy accessibility. Proximity to corporate hubs matters far less than a home’s ability to support wellbeing and flexibility.
- Supply quality and differentiation
Inventory matters, but product matters more. Markets with constrained supply, the right inventory or exceptional lifestyle continue to thrive, while those with a glut of new development – especially in luxury condos – or older properties requiring renovations, require sharper positioning and more refined marketing.
- Confidence and market sentiment
Finally, sentiment and psychology continue to play a decisive role. Markets that offer political stability, safety and economic clarity all continue to shape the pace of decision-making.
What this means for luxury real estate professionals
Today’s luxury market rewards expertise, nuance and narrative:
- Use hyperlocal data to explain subtle market dynamics.
- Position listings within the context of rising lifestyle expectations.
- Communicate confidently about market stability and long-term fundamentals.
- Guide clients through supply-driven nuances with clarity and empathy.
Now is the time to deepen your expertise. Leverage insights from the Institute for Luxury Home Marketing, stay informed through their monthly reports and position yourself as the trusted voice your clients rely on to navigate a market built on confidence, balance and long-term value.
To read the full report, click here.
