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An Outlook for Buyers and Sellers Alike
The luxury real estate market in 2025 continues to showcase resilience and opportunity, with significant increases in inventory across all price segments. Buyers now have more options than in recent months, creating a balanced environment where both sides can find favorable terms. While there are fluctuations in sales activity, the overall outlook is positive. From the $1M-$3M price range to the ultra-luxury market, the expanded inventory offers more opportunities for potential buyers and flexibility for sellers. Here’s a closer look at the market performance across different price brackets.
$1M-$3M market:
In the $1M-$3M price range, the luxury market has seen a notable increase in inventory, with total available homes up by 2% from last month and a significant 41% from the same time last year. This expanded inventory provides an excellent opportunity for buyers to explore more choices and find properties that meet their needs. Despite a 16% drop in new inventory compared to last month, 364 new homes have still come to market in May, reflecting a steady flow of fresh listings. Sales remain relatively stable, with 154 homes sold, a slight 2% decrease from 12 months ago. The median sale price in this segment holds steady at $1.332 million, only slightly down from last year, indicating a stable and competitive market. With an increase in available properties, both buyers and sellers benefit from a broader selection and the chance to negotiate favorable terms.
$3M-$5M market:
The $3M-$5M market has also seen an increase in available inventory, with total homes on the market rising by 2% from last month and 22% compared to the same time last year. New listings have surged by 52% from 12 months ago, adding substantial choice for buyers looking for high-end properties. While new inventory was up by 7% from last month, the number of sales slowed with just 8 homes sold, marking a 20% decrease compared to last month and 11% down from the prior year. The median sale price for homes in this range is $3.775 million, down 6% year-over-year, but the uptick in inventory ensures that the market remains competitive. Buyers will appreciate the greater selection, while sellers are still positioned in a robust market with rising inventory but stable pricing trends.
$5M-$10M market:
Inventory in the $5M-$10M range has increased by 32% compared to last year, providing buyers with a larger selection of luxury homes. However, the number of new listings has dropped slightly, with only 16 new homes hitting the market in May, a 33% decrease from the same time last year. The decrease in new inventory reflects a more measured pace of listings in this high-end segment, but overall inventory remains strong. Despite a 40% drop in closings from last month (with just 3 homes sold), the median sale price has risen by 9% from April to $6.3 million, indicating continued price appreciation. The increased inventory in this segment provides a diverse array of options for buyers, while sellers can still command high prices for well-positioned homes.
$10M+ market:
In the ultra-luxury market, the inventory increase has been especially notable, with a 33% rise in available homes compared to last year. However, the number of new listings has remained relatively flat, with only 6 new homes coming to market in May, reflecting a more cautious approach in this segment. While no sales occurred in May (down from one home sold last month), the ultra-high-end market remains an exclusive space where opportunities for buyers are growing, albeit at a slower pace. The substantial rise in inventory gives potential buyers a wider selection, while sellers benefit from limited competition and can leverage the scarcity of such high-end properties. Though transactions may be fewer, the ultra-luxury market's inventory increase signals that there are still opportunities for those seeking the very best in luxury living.
Final Takeaway
Across all segments of the luxury real estate market, we are seeing a trend of increased inventory, offering buyers more options than in previous months. As we move further into 2025, this expanded inventory continues to benefit both sides of the transaction, ensuring a balanced and healthy market. Whether you're a buyer seeking variety or a seller ready to showcase your property, the luxury real estate market is in a strong position for growth and success.
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