Luxury Developers Walk Fine Line as August Sales Dip
As the luxury real estate market experiences a familiar seasonal dip, the Institute's Luxury Market Report examines the current state of luxury real estate.
As August comes to a close, the luxury real estate market in North America is facing a delicate balance between strength and restraint. The Institute's Luxury Market Report delves into the current state of the luxury market, which saw a dip in sales compared to previous months.
According to the report, sales of luxury properties in August 2025 were down 12.5% compared to the previous month. This dip in sales is not uncommon for the luxury market, which typically experiences a slowdown during the late summer months.
The report highlights the ongoing trend of luxury developers walking a fine line between strength and restraint in the current market. Despite the dip in sales, there is still a strong demand for luxury properties, but developers must also be cautious not to overextend themselves.
In an interview with The Real Deal, Institute President Diane Hartley commented on the current state of the luxury market, saying, "The market is still strong, but it's important for developers to remain strategic and not get caught up in the hype of the market."
While the luxury market may be experiencing a seasonal dip, the report also notes that the median sales price for luxury properties in August 2025 was up 7.5% from the previous year, indicating a continued demand for high-end properties.
Overall, the August data signals a potential shift in the luxury market, with developers and buyers alike navigating a delicate balance between strength and restraint.