Inside the 2025 Luxury Market: Trends & Predictions

Summary

Estate of Mind — The Art of Selling Luxury Real Estate Episode: Inside the 2025 Luxury Market: Trends & Predictions Release Date: April 2, 2025

In this insightful episode of Estate of Mind, Tammy Sims, lead trainer for the Institute for Luxury Home Marketing, along with co-host Jack Miller and special guest Deborah Worth, delves deep into the first quarter of 2025's luxury real estate market. The discussion provides a comprehensive analysis of trends, data, and predictions essential for real estate professionals navigating the high-end market.

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1. Overview of Q1 2025 Market Performance

Tammy Sims opens the conversation by reflecting on the rapid passage of time and introduces Deborah Worth, the producer of the Institute's Luxury Market Report. The trio begins by comparing the initial forecasts for 2025 with the actual market performance observed in the first quarter.

Deborah Worth highlights the optimistic start to 2025, emphasizing that “new inventory is a sign of sellers believing in the market” (01:55). She notes a significant increase in both overall and new inventory, projecting a shift towards a more stable and balanced market.

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2. Inventory Growth and Sales Metrics

Delving into specific data, Deborah presents impressive statistics from January and February:

• January 2025:

  • Inventory Increase: 22% year-over-year
  • New Inventory: 33% year-over-year
  • Sales Growth: 17.8% year-over-year (04:37)

• February 2025:

  • Inventory Increase: 24% year-over-year
  • New Inventory Increase: 17.9% year-over-year
  • Sales Growth: 4.55% year-over-year (06:15)

Despite the high inventory levels, sales showed a more modest increase in February compared to January, leading to discussions about buyer and seller confidence.

Deborah explains, “When you see more inventory, new inventory come on the market, especially currently, because we have a lot of buyers with pent up demand” (06:05).

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3. Economic Influences: Tariffs and Stock Market Volatility

The conversation shifts to external economic factors impacting the luxury real estate market. Jack Miller observes that February's slower sales could be attributed to “stock market news of tariffs” (07:48).

Deborah concurs, stating, “those sort of things tend to, especially for the wealthy, they're quite powerful because they're so invested in things that are happening internationally” (07:51). She elaborates on how uncertainties like tariffs lead affluent buyers to pause their purchasing decisions until the economic landscape stabilizes.

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4. Regional Market Variations

Deborah provides a nuanced view of different regional markets across North America:

• Northeast: Continues to struggle with weak inventory but maintains strong sales exceeding 100% year-over-year (13:55).
• Southeast (e.g., Florida): Experiences increased inventory as the market stabilizes post-COVID, shifting away from a seller’s market (16:13).

She advises realtors to “dig into your local reports and start analyzing what is actually happening there” (15:27), emphasizing the importance of understanding hyperlocal market dynamics.

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5. Impact of Natural Disasters and Hyperlocal Factors

Tammy brings attention to how natural disasters, such as hurricanes on Florida’s west coast and wildfires in California, are affecting inventory and market statistics. Damaged properties often revert to land, reducing available homes and skewing local market data (17:17).

Deborah adds, “the younger generation... have to feel safe, that they're not going to lose their home to fires or flooding or hurricanes” (17:54), highlighting a shift in buyer priorities towards safety and resilience in property investments.

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6. Buyer and Seller Market Dynamics

Addressing the perennial question of whether to buy or sell now, both hosts and Deborah emphasize the long-term investment perspective of the luxury market.

Deborah states, “This is not a speculator's market, it's a long term investment” (18:51). She advises buyers to consider the increased inventory as an opportunity to find properties that can be customized over time, rather than expecting significant short-term price appreciation.

Jack Miller echoes this sentiment, noting the surge in new listings driven by pent-up demand and expressing optimism about buyer confidence in his Nashville market (32:26).

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7. The Institute’s Luxury Market Report

Deborah provides an overview of the Institute’s Luxury Market Report, a crucial tool for real estate professionals:

• Coverage: Approximately 150 North American markets
• Data Included: Average list price, average sold price, sales figures, inventory levels, and price band analyses
• Usage: Enables realtors to compare local market conditions with broader trends, aiding in strategic decision-making

Deborah explains, “If you're working with somebody who's hovering in a price band and you're not quite sure what to recommend, you can see where the market is going and what to recommend” (27:20).

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8. Final Insights and Recommendations

As the episode wraps up, Deborah cautions about the need for stability in interest rates to sustain market growth. She warns against sudden drops in interest rates, which could lead to a rapid depletion of inventory and potential price escalations (25:07).

Deborah advises buyers to remain proactive, suggesting that those willing to undertake minor renovations may find valuable opportunities in the current market (34:36).

Jack Miller shares his optimism, reflecting on strong consumer confidence and a steady influx of new listings, particularly in high-demand areas (32:26).

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Conclusion

This episode of Estate of Mind offers a thorough examination of the luxury real estate landscape in early 2025. By analyzing inventory trends, economic influences, regional variations, and the impact of natural disasters, Tammy Sims, Jack Miller, and Deborah Worth provide listeners with actionable insights and data-driven predictions. The Institute’s Luxury Market Report emerges as an indispensable resource for professionals aiming to excel in the dynamic world of high-end real estate.

For those interested in further details, the episode encourages downloading the Institute's comprehensive market reports and staying informed through continuous analysis of local and national market indicators.

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Notable Quotes:

• Deborah Worth [01:55]: “New inventory is a sign of sellers believing in the market.”
• Deborah Worth [07:51]: “Tariffs tend to... especially for the wealthy, they're quite powerful because they're so invested in things that are happening internationally.”
• Deborah Worth [18:51]: “This is not a speculator's market, it's a long term investment.”
• Deborah Worth [25:07]: “Interest rates need to fall, but they need to fall consistently and slowly.”
• Deborah Worth [34:36]: “If you're willing to undertake minor renovations, you may find valuable opportunities in the current market.”

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Resources:

• Institute for Luxury Home Marketing: luxuryhomemarketing.com
• Real Marketing: realmarketing4you.com

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Estate of Mind continues to be a pivotal resource for real estate professionals seeking to master the intricacies of the luxury market. Subscribe, rate, and review the podcast to stay updated on future episodes and insights.

Transcript

[Deborah Worth]

Foreign.

[Tammy Sims]

Welcome to A State of Mind, a podcast series all about motivating, inspiring and educating you in the art of selling luxury real estate. The podcast is brought to you by the Institute for Luxury Home Marketing. I'm Tammy Sims, lead trainer for the Institute and a full time real estate professional in St. Petersburg, Florida for more than two decades. In today's episode, we're going to have a look at the first quarter's luxury real estate performance and see how it stacks up to the 2025 forecast. Today's podcast is brought to you in part by Real Marketing, the only marketing firm recommended exclusively by the Institute. Real marketing utilizes over 30 years of expertise and their products are built and customized for you to dominate any neighborhood anywhere. Go to realmarketing4you.com that's realmarketing, the number4you.com I'm here today with my co host Jack Miller, a 25 plus year veteran luxury agent with Onward real estate in the greater Nashville, Tennessee market. And joining us is a special guest you're likely familiar with Deborah Worth, who produces the Institute's Luxury Market Report. Deborah has spent the last 20 plus years consulting in the real estate industry, specializing in strategic marketing. Hello to both of you.

[Jack Miller]

Hi Tammy. Hi Deborah.

[Deborah Worth]

Hi.

[Tammy Sims]

Great to have you both. So it's hard to believe that the first quarter of 2025 has already gone by. Right. When they say time flies, that really is is what we're doing. So Debra, let's start by talking about some of the trends that were forecast for 2025 and then we'll dig into what we've seen so far.

[Deborah Worth]

Absolutely. So really I suppose back in January we we just come out of a good end a quarter of to 2024 and everyone was feeling quite buoyant about the market ahead. Experts predicted a pretty dynamic year that was going to be influenced by new demographics expectations though we see a lot of increased inventory both overall and new inventory coming into the market. And really what we would, we wouldn't, we weren't nobody was really anticipating huge price appreciation, but we were probably going to head into a more stable, balanced market where we'd see a lot more sellers come onto the market as well as buyers being able to sort of get off the fence as such because new inventory would allow them to their pent up desire to come in. And there was also a lot of buzz in the air because in December we'd seen an interest rate drop in the US we had seen quite a number of interest rate drops in Canada. So overall in North America we were coming into a pretty positive start of 2025. And the other thing I think which was really important to bring in was the start of the great wealth transfer. That was really start has really started to kick in. A lot of people have talked about that in years gone past and it's sort of. But we're starting to see that money, especially in this new, these new affluent dynamic demographics such as millennials. The millennials are coming in, they're seeing money being transferred to them from their parents, their grandparents, equally. Another demographic was also starting to really take the high end transactions in real estate. They, you were starting to see their money go there and that was the Gen X's. They had really, you know, they had established themselves, they have money, they're starting to really buy in that luxury market and they're also seeing some of that great trans, great wealth transfer come into play. So I think overall I believe that the start of 2025 really came out very positively.

[Jack Miller]

And Deborah, how are you seeing it actually play out in terms of actual inventory and sales in these first few months and the data you've collected thus far?

[Deborah Worth]

Well, I have January and February and I will have to go with my intuition for March because I don't have all of the data for March, but January certainly was a phenomenal January we saw. So I'm just going to pull up some stats and read them for you. So we saw in January compared to January of 2024, huge spikes in the amount of inventory that was in the market. But more importantly, new inventory coming in. And for me that's really key because inventory will grow, but new inventory is a sign of sellers believing in the market. So that's a big number. And we saw. So inventory rose year over year in January 22% but new inventory in January came in at 33%. That's really big numbers. And because new inventory and new inventory and sales kind of, I believe work quite closely in tandem each other. So when we see new inventory come on, that's when buyers obviously get excited because it's something new to see. So we saw the sales percentage rise 17.8% in January.

[Jack Miller]

Do you think buyer confidence is staying consistent with this seller confidence you're talking about?

[Deborah Worth]

That's. That usually happens. Yeah. As sellers, if we see more inventory, new inventory come on the market, especially currently, because we have a lot of buyers with pent up demand.

[Jack Miller]

Sure, yeah.

[Deborah Worth]

Because we've had many, many years of inventory and even today inventory levels are still below what they were pre pandemic. So that Pent up need. And we have a lot more affluent people too in North America who want to get into that market. There's a real change of perception about owning luxury homes over the last five, six years. Covid, for the most part has been instrumental to that. But yes, so really jumping in and people wanting the, you know, to live in a quality home, have all of the fixtures and fittings, the amenities. It's very much part of the psyche now. So January was doing well and aboded very well for a spring market.

[Jack Miller]

Terrific.

[Deborah Worth]

And then we arrived in February. It's not that bad. February we did see significant growth in inventory still. So year over year we saw a 24% increase. So that, yeah, that was pretty similar. So that's great. But we saw a drop in the number of new inventory. So remember in January we'd seen, you know, year over year, a 33% increase. In February we only saw a 17.9% increase. So that's quite a significant change. And sales year over year only rose 4.55%.

[Jack Miller]

What would you attribute that to?

[Deborah Worth]

I think a lot of that has to do with what happened in February. Stock market, news of tariffs.

[Jack Miller]

Right.

[Deborah Worth]

You know, those sort of things tend to, especially for the wealthy, they're quite powerful because they're so invested in things that are happening internationally. They're invested in, you know, their businesses, etc. Etc. So when you have major shifts like that where you see, I mean, we see this whole tariff thing and then you see what it did to the stock market, well, the same thing happens, I think, for the affluent. It's not to say that they're not ready to purchase still. They are, but we're having a bit of a hold to, to try and figure out how that's going to impact. And I think also because some of the tariffs didn't come in in March, there was talk of them coming in and that's been put on hold. And now there's a lot of movement backwards and forwards. So again, when you don't have an absolute happen, I think generally people will put their plans on hold unless they're critical to them.

[Tammy Sims]

Now, Deborah, you know, most of 2024, we were watching to see if interest rates were going to stabilize. And while, you know, while, while higher interest rates is, is more impactful in what I refer to as the bread and butter price points for the affluent, it's about what's the smartest use of their money. Right. Are they going to earn more investing? Is it, does it make more sense to borrow that sort of thing. And, and we've been on that in terms of how the 2025 picture was going to come out. And now we've shifted to this other uncertainty. And so you've mentioned tariffs and the stock market. And so do you think that that's really going to continue to have an impact over the upcoming months or perhaps even to change the outlook for 2025?

[Deborah Worth]

I want to feel positive because I do believe that the real estate side of things, the buyers want to buy, I think they've been hanging on for a long time waiting for interest rates to drop, not so that they can get a mortgage, but because of the overall connectivity between interest rates, as you've just alluded to. So I think it's there. I think what we want to see is some more stability. And I think when we get to that point where we really understand it's the uncertainty of knowing, you know, if you know what you have to deal with, you can make a plan. When you don't have all the facts and figures, you don't have a plan. There is talks, you know, from the federal government, there is talk from the Canadian, from Bank of Canada that interest rates will fall over 2025. Those will have an impact. For those looking for a mortgage, you might not see mortgage rates come down. Interesting. We have in Canada very much seen that. Not quite the same in America, but in Canada, the, in the interest rate's been falling, but we've not seen a shift down in mortgage rates. So those, again, you've got to look at that and say, how does that play out? I wish I had a glass bowl for you, but I'm not, I'm not negative. I'm just feeling that we, we need to ride a few months out. And, and sorry to cut you off there, Jack, but just looking, looking back on 2025, January 2025, and comparing February 2025, again, we have seen more sales and we have seen more inventory. So. But it's just not as been as big a jump as we saw in 2024 or 2023.

[Tammy Sims]

Got it.

[Deborah Worth]

So that's what's happened. It's hot, it's going, but it's just smaller because people are, like, hesitant.

[Jack Miller]

Well, it's funny too, because I know that as I'm listening to you talk about these trends and talk about month by month, I know that the last quarter of last year, I talked to many of our colleagues, particularly those that have been in the business a very long time. I've been through a number of election cycles after 25 plus years in the industry. And I was talking to my clients and they're assuring folks that this is a pretty typical trend that we're seeing. People get pre election jitters. It really doesn't matter. At least as I've seen in my 27 years, doesn't really matter so much. The outcome of the election is that the world is still the same world we're living in and things seem to calm down and consumer confidence comes back and get back on track in January. It's very interesting because we were sluggish in the last quarter or the last half of last year really for our market. January we saw a dramatic pickup. I mean, I was so excited about business in January. And then February is really interesting because it seems like, oh, we got, we got kind of sluggish again and it seemed like the market pulled back a little bit. So what you're sharing about the statistics that you're seeing throughout North America is consistent with what we're seeing and feeling right here in Nashville. And it's funny because that expectation about things will calm down after the election, that really hasn't happened, has it? It's not really that calm. So I think that what's, you know, regardless of what side of the fence you sit on politically, it's more about. It just hasn't calmed down that much. There's a lot of change. A lot of, I think just a lot of now we're seeing post election jitters. Like there's a lot of things different than they were in years past and some people kind of sitting on the fence a little bit more.

[Deborah Worth]

Yes.

[Jack Miller]

What are you seeing as far as in the larger markets? That's, that's what my experience is here in Nashville. Do you think that's what people are seeing in the larger markets as well?

[Deborah Worth]

Yeah, I think there's a slight difference in the larger market with regard to the end of the last quarter. We definitely saw an uptick in sales, quite a significant uptake in sales at the end of last quarter where we'd seen a real decrease had actually been in quarter three across the board. So different markets affected by different things for sure. We, we definitely have, you know, if I was to dive into individual markets, the northeast inventory is still really weak. Right. And we're seeing sales that are over 100%. There's still, it's changing, but it's changing slower. They seem to be, you know, a bit behind, which is a good thing for them right now. But yeah, Northeast is really struggling for infantry Whereas in the the Southeast we're seeing the opposite, especially Florida, we're seeing a lot more inventory being available because they had that big rush obviously over Covid. So things have settled down, but now things more open. There's less people who are making that big transition to Florida. So yeah, things have changed for them. They haven't got such a big seller's market as such. So yeah, each market is seeing variables within it and again, price points within each of those markets. Very different. Very different. I couldn't tell you which was the price band across North America which is selling the most because everything I look at, it's really different. Really different. And it's all again, still about inventory. If the inventory is available, there are sales. If it's not, then, you know, but, but some markets, a lot of pressure and other markets, even if there's no inventory, there's no pressure. So we've got a lot of variables and you've got to really dig into your local reports and start analyzing what is actually happening there. How many, how many homes are for sale in that price band, how many homes have sold and follow that trend to see if there's that point, which is the point in your market where things are selling.

[Tammy Sims]

Now, Deborah, that makes me bring up a point that probably is going to impact your data collection going forward. And it relates specifically to things being hyperlocal. And I'm talking about natural disaster, right? So here on the west coast of Florida, we suffered so much damage from the hurricanes that now a tremendous number of our million dollar properties are homes that were a million and a half that had damage and are now being sold as shells. Right? That's gonna, that's gonna put a whole kink in things. And then when you talk about inventory availability, think about the homes that were destroyed in California. All of a sudden here's a there of existing homes that no longer exist. And so I think just a note to our audience that it's so important to pay attention to the hyperlocal in addition to that.

[Deborah Worth]

But I want to your point, you know, I think that's, that's also going to have an effect as we see these natural catastrophes. People are going to make decisions. There was a report recently about the older the person was, the less they, they cared about natural disasters, which I thought was quite amusing. But the younger generation, for sure, it is top and center of their minds. Where do they go that they can feel safe, that they're not going to lose their home to fires or flooding or hurricanes. It is very They've got a big future ahead of them. Right?

[Tammy Sims]

Yeah.

[Deborah Worth]

And they've got children, etc. So I think we have to take that in. You know, if I was a realtor somewhere where we had a pretty mild winters and summers and, you know, consistency, I would be looking to other markets that have a lot more variables and seeing is that an area where potential buyers could come from.

[Tammy Sims]

That's right. That's right. And so pulling us back kind of on track of what we were, what we were planning to talk about, you know, a question that we always get asked. Right. And Jack, I'm sure that you will echo this is should I buy now or wait? Or should I sell now or wait? Right. Like the Magic 8 Ball. All kind of questions. And you made a comment, Deborah, in, in our conversations leading up to the podcast that, that today is not a speculator's market, it's a long term investment. So tell us more about why you feel that way.

[Deborah Worth]

Yes. So I think for a little while now we have moved into a market where we're not going to see major price appreciation. I'm talking generally. Okay. There's always going to be opportunities for those who know how to ferret them out, but generally we're not going to see major price appreciation. So the people who are investing and buying homes are doing it for the long term. They're doing it for their family, for their sake. You know, it's a home, it's just, it's not an investment. So with regard to that, I think those people who really, you know, it, it's not a buyer's market, but it is a buyer's market. There's a lot more inventory on the market. That being said, is it the, is it exactly what people are looking for? That's where we struggle with the new inventory. Because for a while new inventory meant it was matching, they wanted move in ready, all the amenities, etc. And they were willing to pay. I think if you're a buyer now and you can move laterally, you're thinking and go look, there's a lot of inventory on the market. I could buy a home that isn't quite right. But you know what, I can make it my home over a number of years or even a quick renovation now, I just feel that it's, I think buyers have to recognize this is a perfect time to purchase. That's, that's my intuition. And if I was looking for a new home, I think it's hard if you're, if you're trying to sell and Buy. I get it. Because you're going to lose. Yeah. Because potentially you might have a mortgage. If you do have a mortgage on the property and you've got a low mortgage, that's a challenge. But if you don't have that as an issue and you're kind of a cash buyer, so you don't have a mortgage, you're going to sell your home and you're going to buy something else or even if you're just going to buy another home, I think this is a, this is a great market to purchase it. There's a lot out there.

[Jack Miller]

Tammy, you're right. There's a question we get asked a lot. I mean, it doesn't matter whether, you know, we don't deal much with first time home buyers. Of course they ask that question. But even, you know, very mature buyers and sellers and that's who we're dealing with in luxury home market. Yeah. They're asking us those questions too. Should we sell now? Should we hold on for a while? You know, I try and I think it's very important, I try always to, to put myself in the shoes of my client because obviously we would love to have a new listing to sell. Of course we'd love to have a new buyer to work with. That's always the case if you're in sales. But I try to always advise our clients, you know, based on what would I do, you know, do I have that piece of property that I know I can sit on and rent another couple of years if it's a, if it's a, an income producing property, luxury property, and do better selling a couple years from now? So you're always looking at this crystal ball trying to figure out really where the market's going. And Deborah, I'd like to ask you, I mean, what do you think, what's it going to take for any kind of drastic change in the marketplace? What can we look to see happen if the interest rates do change or stock market change? What we should be looking for is to give us even more hope of a more vibrant market over the next year or so.

[Deborah Worth]

I do believe interest rates will play heavily. I do also think that, well, the stock market has, it's an interesting one because if there's, if people are worried about the stock market and they don't think it's going to perform, they will take the money away from the stock market. And we have seen in the past they put it into housing. The greatest thing about housing, we can't create land. Well, we can, but not really you.

[Jack Miller]

Know, they do in Florida all the time, right?

[Deborah Worth]

Yeah, they do. They do. We can go up and if you're in Holland or Netherlands, as they like to be called, you can go out, you know, but we're not really creating land the way we used to, Right. Or, or ever. And so it's always going to be the question. And, and I, and you just, year over year performance, it's gone up and up and up and up. And I, I just really, really, I mean, there will be areas that are hit by catastrophes, that will see price points drop, etc. That's just the way it is. But overall, investing in real estate is, it's a foregone conclusion. It's going up, especially as populations increases. Now, if we see a major population decrease, maybe in 50 years time, because we are seeing less and less children being born, especially in the Western markets, in the long, long term, maybe not. Right. Maybe we'll see it go down, but we're not there yet. We've still got a lot of millennials and the generations below who are going to be wanting houses. And we've got a deficit of housing across North America. There's no two ways about it. And also, we're not seeing the building that we saw before 2008. It's still not come back.

[Tammy Sims]

Right. And see, that's going to be, that's going to be the opposite in my market, because these homes that can't be, by FEMA rules, repaired, they're, they're becoming land that didn't exist before for new construction. So it's going to skew our local statistics greatly.

[Deborah Worth]

Yeah. Good luck.

[Jack Miller]

Yeah, for sure. Well, there's a lot of variables, too, that impact marketability and whether it's a buyer's or seller's market. I think with the insurance industry in places like Florida and places hard hit by storms, we had a insurance broker in our office recently talking about the impact in those particular markets like Florida or California, with the natural disaster, excuse me, not Florida, pardon me, Florida kind of always has it, dealing with the storms. But western North Carolina, for example, eastern Tennessee, how did that impact insurability of certain properties? And in California, insurability. And like you said, Tammy, some properties just can't be rebuilt. These are all factors that ultimately play out and impact the real estate market as a whole. When it comes to whether it's a buyer's or seller's market, there's a lot of pieces there to look at.

[Deborah Worth]

Interest rates need to fall, but they need to fall consistently and slowly. If we get too big an interest rate drop, what will happen is everybody will rush to the market and the inventory that we have will disappear too quickly and then prices will escalate. So I think if I was, we.

[Jack Miller]

Saw during COVID Yeah.

[Deborah Worth]

If I wanted just to say let's play, you know, the smart game, it would be for inventory, it would be for interest rates to drop gradually, allowing more inventory to come on, allowing the buyers to take, you know, to step into the market. We would see, I think we'll always see a slight price appreciation, but I think that would help the market a lot. Yeah, that is what I would like to see over the next 12 months.

[Tammy Sims]

You know, it, it reminds me of how important it is to pay attention to what's happening in the market all the time. Right. So part of the, the topic today is, is kind of revisiting what the, what the, the trends and anticipated market activity was going to be for the year. But things can change on a dime. And so all of our listeners have the opportunity to download at no cost the Institute's luxury market report, which is a North American report that is specific to the luxury market. And Deborah, I'm going to ask you in just a second to kind of talk about what goes into that report and what they'll see. But for members of the Institute, they also have the opportunity to download what we call city reports or local market reports that tend to be a more defined metropolitan area. And so that can be, that gives our Institute members a means of being able to compare what's going on at that more global level versus what's happening in their backyards. Right. And so Deborah, talk about what goes into that report and what people might find helpful about that on that monthly basis.

[Deborah Worth]

Absolutely. So we produce a North American report and within that report we show we've got about 150 markets. So we do have a grid that does a comparative against each of the markets so you can see what the average lift price is or the average sold price is for that previous month and how many sales and what the average inventory level is. So I think that's quite insightful. We do know that a lot of, of high end affluent people own properties in more than one location. So it's, it's for, for a realtor looking at that, you can get some insights, particularly if you've got a lot of potential buyers, what is there, you know, what's, what's going on in their market versus what's going on in your market. So you can look at it Both ways and vice versa, if you have somebody who's moving. So I think, you know, you've got access to the North American report. And then within that North American report port, we do have an article that talks about what is going on. We look at the statistics, we compare and contrast year over year the previous month. Just to give you an insight of basically what I did a little earlier, which is saying this is what we're seeing. We're seeing, you know, great compared to last year overall, but we're seeing a slowing down compared to what we expected. So those things I think gives you a really strong knowledge of the luxury market. And then go into the actual member portal and you will find 150 local markets. And those local markets, as you said, they're actually based more on county and metropolitan. We're trying to keep it very much that, but they look at the luxury markets within those counties and metropolitan areas and what we've done is we look at, you know, the price, but we do price banding in there. So you can see how many homes there are and say the million to 1.5 million range. So you can say, okay, there's 100 there and then last month 15 sold. So it gives you an idea of the sales and then you compare it to the price band above or the price band below. So if you're working with somebody who's hovering in a price band and you're not quite sure what to recommend, you can see where the market is, is, is going and what to recommend. Especially if we see, you know, the price band below is maybe you know, up to, up to a million and there's only 20 for sale and 15 sold. Well, guess where you should be pricing your property?

[Tammy Sims]

Right, right.

[Deborah Worth]

So those are the sort of things in those local reports I think you'll find really helpful. It also shows year over year, so you can see, you know, how well we were doing, how well your local market was doing in February versus February 2024 gives you some insight as to, oh, because lord has this much more inventory going on. You can look and see what's the median price been doing over the last year. So there's trends and, and, and comparative data. So that's the purpose of it. And the key thing about it is it's just about luxury.

[Tammy Sims]

That's right.

[Jack Miller]

What's the source of your data? Is it an aggregate total of all the MLS's in the north America? Where are you pulling the data from?

[Deborah Worth]

So the Data comes from MLSS for those 150 so when we, so each, each market is looked at separately. So each local market, so there's 150 markets, let's just say, so there'll be 150 local markets. We take those local markets, we aggregate all that information together and then we get the synopsis of what we believe is happening in North America. And so yeah, so there's like something like 15 or 12, 12 markets in Canada and the rest are in the US and like this month we're bringing on three new markets. So we add markets as we can.

[Tammy Sims]

Where we can and for everybody that's listening. So Deborah weeds through all of this information to put this report together. Right. And I just have to say hats off Deborah, because it's amazing and one of the nicest things is that for us we can just go grab it and use it. Right. And we know that it's real authentic data. That is true. And the point that Deborah made of it being very specific to the luxury market, so much of what we consume in the major media messaging about the real estate market is not relevant if you are really looking at individual segments. Right. To the same degree, it's not relevant to be using that kind of data as it relates to just entry level properties or vice versa. The luxury market. So as we wrap up our time together, Jack, I'm going to ask, do you have any, any last burning thoughts or questions or anything that you want to share?

[Jack Miller]

No, I mean, I think, at least for my market, I feel, I do feel like there's a lot of consumer confidence in the luxury home market and it's interesting listening to Deborah talk about statistics because as you're describing the numbers, Deborah, I'm feeling it in our market here as sort of a mirror image to what you're talking about. But I do feel like the consumer confidence is good and interestingly I'm seeing a, we're being have a deluge of new listings coming on board right now. The luxury market in my personal inventory, more so than I've seen in years. And I know again some of that's pent up demand from the end of last year. People kind of sitting on the fence. And if what you're saying, Deborah, is the case, I'm excited because that would suggest there's a lot of buyers to follow. So I'm excited about what happens over the next few months in 2025.

[Deborah Worth]

Just one word of caution. We need some stability. Yeah, I think there is, I think there's a lot of pent up demand. I think there are a lot of Buyers out there, those who are speculating on whether they think the prices are going to drop. So a word of caution to potential buyers. Yeah, there will always be the opportunity for somebody to find a home, but I don't believe that you're going to see a national drop. You're not going to see, you're going to see big drops. Right. The luxury market in particular, most of these people want to sell. They don't need to sell. Right, right.

[Jack Miller]

We've talked about that in the past, Tammy.

[Tammy Sims]

Yeah, yeah, yeah, absolutely.

[Deborah Worth]

Yeah. It's the same with your buyers. They don't need to buy necessarily. They want to buy. So if we understand that as the, the basic psychology, then I think that helps us really position homes at the right price. It helps people understand that, you know, and as I said, if I was potentially a buyer at this moment, I, I would be out there looking and I would be ready to take on a property that needs some work, because I believe that's where you'll find a bit of a golden, golden egg. Not a big one. Maybe a little.

[Tammy Sims]

Got it.

[Deborah Worth]

Right. Yeah, that's where I would go. Because they've kind of been forgotten about and, and, and, and not all of them need massive renovations.

[Tammy Sims]

That's right. And coming from a marketplace where we have lots of older housing stock, you know, that, that absolutely is, is, is quite true. So our time has come to an end and I want to thank all of you out there for joining us on this episode of A State of Mind, the Art of Selling Luxury Real Estate. If you're interested in learning more about the Institute for Luxury Homes Marketing, you can find more online at luxury home marketing.com if you like what you just heard, please share it with a friend. Don't forget to subscribe, rate and review this podcast. And if you've got a hot topic that you'd like us to discuss in a future podcast, feel free to let us know, send an email to infoxuryhome marketing.com thanks so much for listening.