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conomic uncertainty is creating a divide in the luxury real estate market, with ultra-rich buyers making big-ticket purchases despite recession fears, while more affluent but less wealthy buyers are acting cautiously. A survey of 200 luxury property agents found that high-net-worth individuals worth at least $30 million are driving a surge in all-cash offers and are less sensitive to interest rates.

    According to the report, just over half of surveyed agents saw an increase in cash purchases by clients in 2025, with only 3.9% reporting a decrease. Jason Waugh, president of Coldwell Banker Affiliates, attributes this trend to high interest rates, which make borrowing costs unappealing for those who can afford to pay cash.

    Waugh notes that real estate can be more attractive during times of economic uncertainty due to its ability to preserve wealth and serve as a hedge against inflation. He believes that data confirms the narrative that luxury property is seen as a great way to accumulate wealth, even in uncertain economic environments.

    However, despite overall luxury home sales rising in the first five months of 2025, they took a hit in May following April's stock market dip. Luxury single-family home sales dipped 4.7% year over year, while attached property sales plummeted by 21.1%. Agents are also seeing more clients reduce list prices and buyers at all price points becoming more discerning, with top-end appliances and amenities now being requested.

    First-time luxury buyers are particularly choosy, Waugh said, as they may be stretching themselves in the current rate environment and will evaluate properties more carefully before making a purchase.