Coldwell Banker: Luxury Homebuyers Remain Active But Selective

Affluent homebuyers continue to view real estate as a critical investment, but they’re approaching the market with increased caution and discernment, according to a midyear report from Coldwell Banker Realty.

The report draws on market data from 120 U.S. cities along with survey responses from more than 200 Coldwell Banker luxury property specialists.

It identifies five trends shaping the high-end real estate landscape — including a shift toward strategic “no-compromise” purchases and a growing preference for all-cash transactions.

“So far in 2025, we’re seeing a luxury real estate market that isn’t fully bullish or bearish — but rather recalibrating,” said Michael Altneu, vice president of the Coldwell Banker Global Luxury program. “Affluent home buyers still see real estate as a safe haven to grow and protect their wealth, but as the market balances and more inventory comes online, they can also be more choosy than in recent years.

“Practical considerations including home affordability, tax strategy, estate planning and long-term investment potential are taking precedence over aesthetics, flashy amenities or location. This could mark the return of what we call ‘smart luxury’ — a mindset shift where discernment and strategic decision-making take priority.”

Despite economic uncertainty, 68% of surveyed agents reported that clients are maintaining or increasing their real estate holdings. Only 11% said clients are moving away from real estate in favor of other financial assets.

Buyers are also placing greater emphasis on practical factors such as affordability, tax benefits and long-term value — rather than purely aesthetic or status-driven features. Roughly 30% of agents cited this shift as the most dominant trend.

Move-up buyers utilize equity

Rising home prices have allowed more homebuyers to enter the luxury market — often unintentionally.

The National Association of Realtors reports a 47% increase in home values over the past five years, giving many owners substantial equity to leverage into higher-end property purchases.

“Buyers who once thought luxury was out of reach are now finding themselves in that tier by default,” Altneu said. “They’re coming into the market with significant equity and high expectations — and they’re helping to sustain activity.”

Coldwell Banker’s report shows a growing divide between aspirational buyers (net worth of $1 million to $5 million) and ultra-wealthy individuals (net worth of $30 million or more).

One in five agents reported significant behavioral differences between the groups. Ultra-wealthy buyers continue to purchase multiple properties, while aspirational buyers are more likely to delay decisions, seek value opportunities or target renovation projects.

Cash transactions, luxury market resiliency

An overwhelming 96% of agents said luxury buyers are maintaining or increasing cash purchases, using real estate to hedge against market volatility

“Ultra-high-net-worth individuals aren’t just buying one property — they’re building real estate portfolios,” said Jade Mills, president of Jade Mills Estates and international ambassador of Coldwell Banker Global Luxury.

“These buyers are paying all cash specifically because they want hard assets independent of market swings. When you’re dealing with generational wealth, real estate becomes a cornerstone strategy, not just a lifestyle purchase.”

Data from The Institute for Luxury Home Marketing supports Coldwell Banker’s findings, showing strong year-over-year performance in the luxury market.

Inventory for single-family homes in the luxury segment is up 19.6%, while the supply of attached homes rose 14.8%. Prices for single-family homes have grown 1.8% over the past year and 8% since 2023.

Attached properties saw even stronger appreciation — 8.4% over the past year and 16.5% over two years.

While sales of attached properties have softened slightly — likely due to interest rate sensitivity — single-family home sales rose 1.7% year over year and 9% since 2023.