Market Update April 14th, 2025

A very different picture is emerging in today’s luxury housing market. While the current inventory stands at 169.5 days, this figure is significantly below the long-term average of 279.4 days. It’s also notably lower than any inventory levels recorded between 2014 and 2019. This data highlights a sustained increase in demand for high-end homes, a trend that has persisted all the way through to recent weeks.

The luxury sector, historically more balanced or buyer-favored, has recently leaned toward sellers due to this undersupply. The pandemic years played a key role in reshaping this landscape — during COVID, the inventory of luxury homes plummeted to a record low of just 38 days. Since then, the market has gradually seen inventory increase, but it remains well below historical norms.

Given these conditions, the lower end of the luxury market still favors sellers. With inventory still constrained, well-priced homes in desirable areas are attracting attention. However, there is growing concern about how broader economic uncertainty and volatility in other investment sectors could impact this momentum. If luxury buyers begin to pull back, inventory could rise again.

Should buyer enthusiasm cool, we may see inventory levels return closer to the long-term average of around 280 days. This shift would signal a more balanced market and possibly slow the rapid appreciation we’ve seen in recent years. For now, though, the luxury market remains tight and seller-friendly, albeit with caution on the horizon.

“He is a wise man who does not grieve for the things which he has not, but rejoices for those which he has.”
—Epictetus

Have a great week, everyone!