Over half of buyers surveyed are optimistic about the housing market, with 54.5% saying it is "Good." In 2024, 45% of affluent buyers paid cash for their homes, which is the largest share in over a decade. This somewhat insulates the luxury market from fluctuations and keeps prices elevated. Coldwell Banker anticipates that the 2025 market will be defined by home affordability.
Certainly for aspirational luxury buyers who want to enter the market in 2025, but even for buyers who don't have cost as a barrier to entry, there is a strong interest in the value of homes in the lifestyle and long-term returns they provide. Many industry experts, including Coldwell Banker, predict the large demand will alleviate upward pressure on prices. If mortgage rates decline, that will reduce the "lock-in effect" of potential sellers hesitant to move from their current homes and open up inventory even more.
