Century 21 Releases 2025 Luxury Market Report
MARKETING
Report highlights how changing buyer behavior and market stabilization defined luxury real estate in 2025.
Century 21 Real Estate has released its 2025 Luxury Market Report in partnership with The Institute for Luxury Home Marketing, revealing how the North American luxury real estate market evolved throughout the year. The findings show a market that moved from cautious reengagement to balanced stability, ultimately creating more accessible opportunities for luxury homebuyers.
The report challenges conventional assumptions about luxury real estate, particularly the notion that luxury properties are only available to the ultra-wealthy. According to the data, the national median luxury threshold sits at approximately $900,000 for single-family homes and $700,000 for attached properties, a finding that supports Century 21's focus on "attainable luxury."
Market Shifts Throughout 2025
The first half of 2025 saw buyers becoming more selective and disciplined in negotiations. By the third and fourth quarters, the market reached equilibrium with steadier pricing, improved inventory, and more balanced transaction activity.
Inventory expansion was one of the year's most significant trends. In Q1, inventory rose more than 26% year-over-year, while Q2 saw an increase of nearly 30% year-over-year. This expansion gave buyers improved choice and access to competitively priced options.
Homes sold for roughly 98% of list price throughout 2025, after an average of 30-31 days on market. This consistency reflects the increasing stability that characterized the latter half of the year.
Single-Family Homes Dominate
Single-family luxury homes led market activity throughout 2025. Sales grew by 2.6% year-over-year in Q2 and jumped 7.5% year-over-year in Q3, showcasing consumer preference for larger spaces and more privacy.
In contrast, attached property sales decreased by 8.1% year-over-year before increasing by only 0.5% year-over-year during the same period. The divergence between single-family and attached property performance highlights the shifting priorities of luxury buyers.
Regional Variations
The report reveals significant regional differences in what "luxury" means across markets. In Eagle County, Colorado, one of the most expensive luxury markets in the U.S., sales prices reached $4.8 million. Meanwhile, in Greater Des Moines, multi-thousand square foot properties sold for $630,000.
"We're a consumer-driven brand, and this report captures consumer behavior like no other," said Mike Miedler, President and CEO of Century 21 Real Estate. "We have affiliates everywhere, from some of the most expensive luxury markets in the U.S. to more affordable regions. 'Luxury' means something different to each office under the Century 21 banner."
Insights for Agents and Consumers
With over 3,600 luxury home specialists working across more than 900 Century 21 Fine Homes & Estates designated offices, the brand offers one of the industry's broadest views of the luxury market.
"Throughout much of 2025, our focus was placed firmly on the idea of 'attainable luxury,' which was proven to be a growing phenomenon by the 2025 Century 21 Luxury Market Report," said Tori Keichinger, Vice President and Head of Marketing for Century 21 Real Estate. "To properly serve consumers interested in the luxury market, we need to be up to date with what the latest definition of 'luxury' is."
The report provides practical information for agents about the kinds of markets they're operating in, what luxury buyers and sellers are looking for lifestyle-wise, and what consumers need to prepare for ahead of their first luxury transaction.
For more information, visit century21.com/homes/luxury or read the full report.