Recently, luxury property prices have risen by 4.7% year over year, marking a continued trend over the past decade. However, industry expert Roffers notes that the peak was reached in 2021, when factors like low interest rates and increased demand due to COVID drove prices up. Currently, while buyers are still investing in prime properties, they are less inclined to meet inflated asking prices. In 2024, luxury homes sold for 13% less than their initial listing, with longer market times resulting in even deeper discounts.
The luxury property market saw a 4.7% rise in sale prices year over year, continuing a decade-long trend. However, market dynamics have shifted since peaking in 2021.
Roffers emphasized that the luxury market peaked in 2021, attributed to cheap financing and heightened demand for homes during COVID, but now faces challenges.
One striking report finding indicates that luxury homes sold for an average of 13% below their listing price in 2024, highlighting a divergence between seller expectations and buyer willingness.
The longer homes sit on the market, the greater the price drop; homes listed for more than 180 days sold for only 81% of the original list price.
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