View of luxurious houses and boats on the water along the Intracoastal Waterway near the Jupiter insert in Jupiter, Florida in the Palm Beach County
Ryan Tiischken | IStock | Getty pictures
A version of this article was first published in CNBCS Inside WEALTH newsletter with Robert Frank, a weekly guide for investors and consumers with a high network. Register to get future editions directly into your inbox.
According to a new report by Brokerage Coldwell Banker, economic uncertainty on the luxury real estate market between ultra-rich buyers and the mere are enough.
A survey of around 200 agents specialized in luxurious real estate showed that ultra-rich buyers who are defined as people worth at least $ 30 million, despite the trade war and fear of recession, still make purchases in large ticket. They also drive a significant increase in allcash offers. In the meantime, wealthy, but less wealthy buyers are more sensitive to interest rates and, according to the report, behave more carefully.
A little more than half of the agents surveyed stated that in 2025 they had a slight or significant increase in cash by customers. Only 3.9% stated in the first five months of 2025, while 45.4% gave that bare purchases were kept stable according to the report.
Jason Waugh, President of Coldwell Banker Affiliates, told Inside Wealth that high interest rates were an essential factor for the increase.
“Cash offers control for a buyer. It offers lever, speed and security,” he said. “But it is really the increased credit costs that remain so high. Why do they absorb costs if you have the money to close a property purchase, right?”
Waugh, who received his broker license almost 32 years ago, said that real estate can be more attractive in times of economic uncertainty. A little more than two thirds of the agents surveyed stated that wealthy customers maintain or increase their real estate exposure, while only 11.3% gave that customers' interest had decreased in favor of stocks and other financial assets. The remaining 20.6% of the agents stated that customers had put plans on hold due to the economic or stock market uncertainty.
“It was a roller coaster and the business is cyclical. I think at the end of the day, real estate is a hard asset, keep prosperity and protect against inflation,” he said. “I think that data really confirms this narrative that people see real estate as a great way to collect prosperity, even in the most unsafe and most volatile economic environment, which we have navigated for over a decade.”
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While the luxury home turnover rose in the first five months of 2025, you will be successful in May, the first full month after the stock market market in April. In the report that quoted data from the Institute for Luxury Home Marketing, the turnover of luxury industrial houses had dropped by 4.7% compared to the previous year, while the attached sales of real estate had dropped by 21.1%.
According to Waugh, more customers will reduce list prices compared to the past few years compared to the past few years. The median sold the prices for luxury and luxury and luxury real estate, which were currently $ 1.7 million or USD 1.25 million.
Waugh added that buyers are more demanding at all prices than a few years ago. You are now asking for top-end devices such as smart refrigerators, spa levels and food indoors and outdoors from a fireplace to an entire kitchen.
First luxury buyers are particularly picky, he said.
“In view of the current installment environment, you can stretch yourself.” It is a completely new environment this year than in the past few years. “