F
oreign buyers are poised to benefit from the weaker US dollar, which is expected to boost activity in prime housing markets across the country. According to Knight Frank, lower interest rates will drive growth ahead of a broader housing market recovery. However, high borrowing costs have dampened luxury market activity, with many prime buyers holding wealth tied up in other asset classes affected by rising rates.

    The upcoming November election adds uncertainty, but Jonathan Miller, president and CEO of Miller Samuel, notes that mortgage rates are still double pre-pandemic levels. "You look at the Fed repricing and think housing should skyrocket," he says, "but we're not going to see a frenzied boom."

    Florida's luxury market has been driven by New Yorkers, with Palm Beach seeing average prices surge 214% over five years. While growth has slowed as inventory rises, sales volumes dropped 4.5% in the six months through Q2 compared to the same period a year earlier.

    In Manhattan, inventory is increasing, stabilizing sales volumes and keeping prices stable. Higher-value properties have outperformed, with 68% of transactions being cash-funded in Q1, a record high. Sales volumes are expected to pick up after the election, says Miller.

    Aspen's market has seen a 67.3% price surge since Q1 2020, driven by different factors across three tiers. The growing population suggests an undersupply for properties under $10 million, while homes priced between $10 million and $25 million have slowed sales as buyers seek value after recent price spikes.

    In other emerging markets like Dallas and Austin, developers are increasing supply to accommodate new residents attracted by favorable tax incentives. Luxury developers in Dallas are constructing high-end homes to appeal to the city's growing wealthy population, hoping to replicate their success in Los Angeles.