The Institute for Luxury Home Marketing’s May 2025 Luxury Market Report serves as your guide for analyzing trends in the luxury real estate market. ILHM produces this report monthly, and it provides a detailed view of the top luxury residential markets in the United States as well as Canada.
The report for May 2025 includes several statistics such as:
- Days on Market
- Sales Price vs List Price
- Total Sales Ratio
- Median List Price
- Median Sale Price
- New Listings
- Total Sold
New Market Realities in the May 2025 Luxury Market Report
Single Family Homes
The first months of 2025 have seen luxury buyers pause as the economic news fluctuates. Contracts are being signed in key U.S. markets, but closings are delayed as buyers look for stability in indicators such as interest rates and stock market performance.
- The median sale price is up by $100k from April 2024
- New listings are up by 6,492 units from April 2024
- Days on market for single-family homes rose by 3 days
- The median SP/LP Ratio stands at 98.63% in April 2025 versus 99.15% in 2024
Condominiums and Townhouses
- Condos and townhomes saw a $29k rise in median sale price from April 2024
- Days on market rose by 4 days
- While the media list price has declined, the median sales price as risen to $879k
- Month over month, new listings rose by 1,139 units
The luxury market appears to be in flux, shaped mostly by shifting confidence in financial affairs and economic stability. The world’s wealthiest buyers may be more immediately impacted by changes in macroeconomic policies driven by the current administration’s priorities.
May 2025 Luxury Market Report: Canada Shows the Weakest Performance
The luxury market in Canada is seeing a significant drop in performance. National home sales are down by 9.3% year-over-year. The economy in Canada is seeing widespread downward forecasts due in part to tariff concerns and economic fluctuations causing uncertainty.
Biggest Takeaways in Luxury Home Builders Market Assessment
1. Economic Backdrop for Luxury Home Builders is Challenging
Sharply rising costs for goods and materials are impacting the cost of luxury homes. Builders are unable to absorb significant cost increases.
2. Higher Mortgage Rates are Reducing the Pool of Luxury Buyers
Less buyers are able and/or willing to take on large-scale luxury new builds. This decline is also negatively impacting building confidence.
3. Labor Shortages Further Complicate Builder’s Plans
The May 2025 Luxury Market Report notes how labor shortages in skilled trades such as masonry, carpentry, and electricians are leaving builders with longer timelines. As a result, costs are increasing for labor as well.
Key Takeaways from the May 2025 Luxury Market Report
The U.S. luxury real estate market is navigating economic changes, shifting buyer expectations, and ongoing regulatory developments. According to the May 2025 Luxury Market Report, adaptability is key in today’s high-end living. The line between indoor and outdoor spaces is increasingly blurred, with natural elements continuing to play a defining role in luxury design. As noted in the report, “Sustainability has become inseparable from luxury.” This means homes are built or retro-fitted with:
- Solar panels
- Reclaimed materials
- Water-saving systems
- Energy-efficient infrastructure
Partner with an Expert in Luxury Real Estate to Leverage the May 2025 Luxury Market Report
Thriving in the luxury real estate market demands the guidance of a seasoned expert. Both buyers and sellers gain a distinct advantage by partnering with an agent who specializes in upscale properties and understands the intricacies of the local landscape. A true luxury professional brings deep experience, sharp market knowledge, and a refined appreciation for the features that elevate exceptional homes. In this high-end arena, expertise and a history of success are non-negotiable.
Get exclusive insights into the upper-tier real estate market. Join one of The Institute for Luxury Home Marketing’s live or online training sessions. Enroll today!
Your Trusted Expert in Luxury Real Estate
As a luxury real estate expert, I bring sharp market insight and a strategic edge to every high-end transaction. Whether you’re buying or selling, my custom marketing approach, deep industry experience, and professional qualifications are designed to deliver results. I’m here to make your journey smooth, stress-free, and completely aligned with your vision—because in luxury real estate, every detail matters.
My certifications and designations include all of the following, and more:
- Certified Luxury Home Marketing Specialist (CLHMS)
- Graduate REALTOR® Institute (GRI)
- Military Relocation Professional (MRP)
- KW Relocation Specialist
- Certified Risk Management Specialist (CRMS)
- Resort & Second-Home Property Specialist (RSPS)
- Professional Standards Committee, Hearing Panel for Arizona Association of REALTORS®
- Master of Real Estate Society, Arizona Association of REALTORS®
- Keller Concierge Certified, Ready-to-Sell Program
- Senior Real Estate Specialist (SRES)
Call me today! I will be happy to provide a complimentary consultation: 480-788-5446
