​Here’s how the luxury real estate market is splitting up

A version of this article first appeared in the CNBC’s Inside Wealth bulletin with Robert Frank, a weekly guide for high -valuable investors and consumer. Be a member To get future prints, directly to your box.

According to a new report of Coldwell Banker, intermediary, economic uncertainty creates a distinction in the luxury market market between ultra -rich buyers and only rich buyers and only the rich.

A survey of about 200 agents specialized in luxury property found that Ultra -rich buyers, who are defined as individuals worth $ 30 million, have still made large ticket purchases despite their fears of trade war and stagnation. They also provide a significant increase in all cash offers. In the meantime, rich but less wealthy buyers are more sensitive to interest rates and are more careful than the report.

A little more than half of the agents participating in the survey said that they saw a slight or significant increase in cash purchases by customers in 2025. Only 3.9%, in the first five months of 2025, reported a decrease in these buyers, while 45.4% said cash purchases are stable according to the report.

Jason Waugh, President of Coldwell Banker Associates, told Inide Wealth that high interest rates are an important factor behind the fluctuation.

“Cash provides control to a recipient. Leverage, speed and safety,” he said. “But really high borrowing costs that continue to remain so high.

Waughing about 32 years ago, Waughing, the real estate may be more attractive during the economic uncertainty periods, he said. More than two -thirds of the agents participating in the survey said that wealthy customers protect or increase that they are exposed to real estates, while only 11.3% of customers’ interest fell in favor of shares and other financial assets. The remaining 20.6% of the agents said that customers kept plans waiting due to economic or stock market uncertainty.

“This is a role Coaster and business cyclical. “I think that the narrative they see as a wonderful way to accumulate a levy, even in the most uncertain and variable economic environment we have wandered over a period of more than a decade, is really verified.”

However, while luxury home sales increased in the first five months of 2025, they took a hit in May, the first month after the fall of the stock market in April. The report referred to the data given from the Luxury Home Marketing Institute, when the sales of luxury single family home sales fell by 4.7% annually, attached property sales fell by 21.1%.

According to Waugh, representatives also see that more customers have reduced list prices in 2025 compared to recent years. According to the Luxury House Marketing Institute, the media for luxury single -family and luxuriously connected properties are currently $ 1.7 million and $ 1.25 million.

Waugh, all price points buyers are more decisive than a few years ago, he added. Now they want smart refrigerators, SPA -level possibilities and high -level devices such as internal closed life features from fireplace to a whole kitchen.

For the first time, he said that luxury buyers were particularly selective.

“Considering the current ratio environment, they may be stretching themselves, so they will be much more decisive in terms of evaluating where they live, opportunities, and the status of the property while moving.” He said. “This year is a completely new environment than a few years.”