How Tariffs & Stock Market Volatility Are Impacting Luxury Real Estate

So, what’s really going on in the luxury real estate market? And what can we expect in the months ahead?

Luxury Home Prices Are Holding, But There’s a Catch

Despite stock market turbulence, the latest Luxury Homes Index by Concierge Auctions reports that high-end home prices remain on an upward trajectory. Based on data for 2024, sale prices for luxury properties are up 4.7% compared to 2023, continuing a 10-year growth trend but still falling short of the market’s 2021 peak.

Here’s where we briefly point out that this report predates the Liberation Day tariffs and does not reflect how the current administration’s tariffs could impact home prices, including those in the luxury segment. 

More importantly, though, the gap between listing prices and final sale prices remains stubbornly high. Luxury homes are selling for an average of 13% below their original asking price. And for properties that sit longer than 180 days, sellers recover only 81% of their list price. 

How Long Luxury Homes Are Taking to Sell

One of the biggest challenges in the luxury segment? Time on market.

• The average luxury home now takes 319 days to sell.
• If a home sells within 180 days, the average days on market (DOM) is 89. 
• If a home doesn’t sell within 180 days, the average DOM jumps to 514 days.

By contrast, a median U.S. home typically sells in under 60 days.

According to the Luxury Home Index, the cost of holding onto a luxury property for too long is substantial, from carrying costs to the psychological burden of sitting on an unsold asset.  

In an environment where economic uncertainty is growing, luxury sellers need to be strategic in both pricing and marketing their properties.

Foreign Buyers & Trump’s Trade Policies: A Wild Card for Luxury Real Estate

While tariffs are rattling the financial markets, foreign investment in U.S. luxury real estate isn’t fading entirely—especially at the ultra-high-end.

As Realtor.com reports: 

• Wealthy Russian buyers are making a comeback in New York City, purchasing $10M–$20M properties after a 10-year hiatus.
• High-net-worth individuals still see U.S. real estate as a stable investment, particularly due to the quality of new construction and the American education system.
• Despite ongoing sanctions, Trump’s administration has been more lenient in investigating foreign real estate investments, making the U.S. an attractive market.

However, agents working with international buyers should be aware that further tariff escalations—or a shift in government policy—could change this dynamic quickly. 

Key Takeaways for Agents

The luxury real estate market is evolving fast, and agents need to be prepared. Here’s what to focus on:

• Set realistic seller expectations. Luxury properties are still selling, but only when priced right. Overpricing leads to drawn-out sales and deep discounts.
• Speed matters. Homes that linger beyond 180 days see their final sale price drop significantly.
• Watch the stock market. High-net-worth buyers are heavily impacted by market swings; if stocks slide further, luxury demand could take a hit.
• Foreign buyers are still active, but the landscape is shifting. Political changes and tariffs could influence international investment patterns.

In this volatile environment, data-driven pricing, strategic marketing, and a deep understanding of economic trends will set top-performing agents apart. 

By: Sarah Lentz Carroll I BAM I April 14, 2025