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"Affluent buyers are continuing to move forward with real estate decisions, particularly when they see long-term value, lifestyle alignment and move-in-ready opportunities."

NORTH AMERICAN LUXURY REVIEW

NORTH AMERICA’S LUXURY REAL ESTATE MARKET MAINTAINS MOMENTUM IN Q1 2026

Despite ongoing economic, political and global uncertainty, the North American luxury real estate market in the first quarter of 2026 has shown resilience. Luxury sales continued to rise through the first quarter, inventory expanded modestly, and well-positioned properties remained highly competitive.

Luxury single-family home sales increased by 3.6% in Q1 2026 compared to Q1 2025, while attached luxury properties such as condos and townhomes saw a 1.8% gain. These increases suggest that affluent buyers are continuing to move forward with real estate decisions, particularly when they see long-term value, lifestyle alignment and move-in-ready opportunities.

MARCH SALES SURGE DESPITE TIGHTER INVENTORY

March further reinforced this trend. Luxury single-family home sales rose 5.9% year-over-year and climbed 39.9% compared to February. Attached luxury property sales increased by 6.6% year-over-year and by 33.4% month-over-month. These are notable gains, particularly because they exceeded the seasonal increases recorded during the same period in 2025.

At the same time, inventory growth remained limited. Single-family luxury inventory was effectively flat year-over-year, rising by just 0.2%, while attached inventory declined by 4.1%. New listings for singlefamily luxury homes fell 3.1% compared to March 2025, although they still rose 23.9% from February 2026, as sellers prepared for the spring market. Attached luxury properties followed a similar pattern, with new listings declining 7.2% year-over-year but increasing 15.7% month-over-month. These softer listing gains suggest that some sellers may be a little more hesitant to enter the market amid current uncertainty.

This downturn in both current inventory and new listings, coupled with stronger sales activity, has shifted the market back toward more favourable conditions for sellers after a long period of gradually moving toward balance. However, given the current political, economic and global influences, monthly trends are

expected to show some inconsistencies over the coming months.

At the same time, pricing has remained relatively stable. The median sold price for luxury single-family homes in March was effectively unchanged year-over-year, declining by just 0.1%, although it fell 1.5% compared to February 2026. In the attached luxury market, median sold prices declined more noticeably by 5.7% yearover-year, but were virtually unchanged monthover-month, slipping by only 0.06%.

Only time will tell how much external influences will affect the luxury housing market. For now, however, the data suggests that while some sellers may be holding back, many buyers are taking advantage of the opportunities available. Whether motivated by greater inventory choice as the spring market unfolds, the long-term stability of real estate compared to the volatility of financial markets, or the fact that the luxury sector has become somewhat less sensitive to broader global events, affluent buyers continue to move forward with confidence.

LUXURY MARKET STABILITY

One of the reasons the luxury market remains strong is because affluent buyers increasingly view real estate as a stable long-term asset. Compared to the volatility of financial markets, luxury property continues to offer security, utility and lifestyle benefits. In many cases, buyers are not simply purchasing a home; they are acquiring a long-term lifestyle investment.

Lifestyle priorities are playing a much greater role in purchasing decisions in 2026. Today’s affluent buyers are prioritizing homes that support flexibility, wellness, multigenerational living and remote work. Move-in-ready homes with upgraded finishes, strong technology integration, outdoor amenities and wellness features are commanding the most attention. Buyers are also increasingly looking for properties that can serve multiple purposes, such as a primary residence, a part-time retreat or a work-from-home base.

The second-home market remains particularly active among affluent households. According to recent reporting from Forbes1, second-home purchases now account for 28% of luxury real estate transactions globally. Buyers are increasingly looking beyond traditional markets such as Aspen, Miami and the Hamptons, and are considering emerging lifestyle destinations that offer year-round livability, lower taxes, outdoor recreation and stronger long-term value. Younger affluent buyers in their 30s and 40s are especially active in this segment, often building portfolios around flexibility and mobility rather than status alone.

1 https://www.forbes.com/sites/emmareynolds/2026/03/06/where-the-wealthy-are-buying-second-homes-in-2026

UNDERSTANDING LOCAL MARKET CONDITIONS

Although the broader luxury market is showing continued strength, luxury real estate remains highly fragmented by geography, price point and property type. National trends can provide valuable context, but local knowledge remains essential.

A luxury condo market in downtown Toronto may behave very differently from a waterfront market in Florida, a ski community in Colorado or a suburban estate market outside New York. Some markets remain firmly in seller territory due to severe inventory shortages, while others have moved closer to balance as new listings increase.

For example, certain Florida markets are seeing inventory rise by as much as 25%, giving buyers more negotiating power and slowing price growth. Meanwhile, highly constrained markets such as Nantucket, Aspen and Greenwich continue to experience strong pricing because of limited supply, location scarcity and enduring prestige. In these markets, luxury behaves differently because buyers are often less sensitive to interest rates and more focused on exclusivity and lifestyle.

Understanding the local dynamics of inventory, days on market, buyer demographics and pricing trends is critical for both buyers and sellers. The broader market may indicate whether the luxury sector is gaining or losing momentum, but success still depends on knowing what is happening in a specific neighbourhood, community or price bracket.

WHO ARE LUXURY BUYERS IN 2026?

Luxury buyers in 2026 are more diverse than in previous years, but they tend to share several common characteristics.

Many are financially strong, with significant equity, cash reserves or investment wealth. Cash transactions remain common, according to NAR2 roughly 30% of luxury purchases are completed without traditional mortgage financing. Buyers are also increasingly older and more established, often using accumulated wealth from previous home sales, business success or investment portfolios to fund their purchases.

At the same time, younger affluent buyers are becoming more influential. Millennials and Gen X buyers are reshaping the luxury market through their preference for flexibility, sustainability and functionality. They are less interested in oversized homes for the sake of status and more interested in properties that enhance their lifestyle. They value smart home technology, energy efficiency, adaptable floorplans, home offices and wellness amenities such as gyms, spas, saunas and outdoor living spaces.

2 https://www.nar.realtor/blogs/economists-outlook/the-cash-buyer-and-the-waltz-of-the-rising-rates-a-modern-market-tale

Multigenerational living is also emerging as a significant trend. Many affluent buyers are seeking homes that can accommodate aging parents, adult children or extended family. Flexible floorplans, guest suites, detached casitas and secondary living areas are becoming increasingly desirable.

In general, today’s luxury buyer is intentional. They are willing to wait for the right property, but when they find it, they are prepared to act quickly.

HOW SELLERS CAN CONNECT WITH TODAY’S LUXURY BUYERS

For sellers, the message is clear: presentation matters more than ever.

Today’s affluent buyer expects homes to be turnkey. Properties that are well-designed, professionally staged and move-in ready are attracting the most interest. Buyers are less willing to take on renovations, deferred maintenance or outdated interiors, particularly when they are paying premium prices.

Sellers should focus on showcasing lifestyle, not just square footage. Marketing should emphasize how a home lives, whether through seamless indoor-outdoor entertaining, private wellness amenities, flexible workspaces or proximity to nature, recreation and cultural attractions.

Professional photography, video, digital marketing and storytelling are also essential. Luxury buyers are often searching across multiple cities, states and countries, meaning a home’s online presence may be its first and most important showing.

Finally, pricing strategy is critical. Even in strong luxury markets, today’s buyers are highly informed. They understand value, monitor inventory closely and compare properties carefully. Homes that are overpriced or poorly presented can sit longer and eventually require price reductions, while properties that are priced correctly and aligned with buyer expectations continue to sell quickly.

The luxury market in 2026 remains resilient, and shaped by confidence, intention and the growing desire for homes that provide both stability and an elevated lifestyle. As a result, success will belong to those who understand not just where the market is today, but where affluent buyers are headed next.

– 13 - MONTH MARKET TRENDS –

THE LUXURY NORTH AMERICAN MARKET

Single-Family Homes

Attached Homes Single-Family List Price Attached List Price

All data is based off median values. Median prices represent properties priced above respective city benchmark prices.

$1,700,000

$1,500,000

$1,300,000

$1,100,000

$900,000

$700,000

$500,000

A Review of Key Market Differences Year over Year

SINGLE-FAMILY HOMES

SINGLE-FAMILY HOMES MARKET SUMMARY | MARCH 2026

• Official Market Type: Seller's Market with a 24.52% Sales Ratio.1

• Homes are selling for an average of 98.44% of list price.

• The median luxury threshold2 price is $900,000, and the median luxury home sales price is $1,319,441.

• Markets with the Highest Median Sales Price: Telluride ($7,117,500), Silicon Valley ($5,600,000), Eagle County ($5,188,536), and Paradise Valley ($5,100,000).

• Markets with the Highest Sales Ratio: San Francisco (146.0%), Hamilton County (74.5%), Howard County (73.2%), and Arlington & Alexandria (70.8%). 1

A Review of Key Market Differences Year over Year

• Official Market Type: Balanced Market with a 19.36% Sales Ratio.1

• Attached homes are selling for an average of 98.65% of list price.

• The median luxury threshold2 price is $700,000, and the median attached luxury sale price is $870,000.

• Markets with the Highest Median Sales Price: Lake Tahoe ($3,367,500), Whistler ($2,950,000), San Francisco ($2,650,000), and Greater Boston ($2,525,000).

• Markets with the Highest Sales Ratio: Arlington & Alexandria (138.3%), Fairfax County (126.6%), Howard County (111.8%), and Anne Arundel County (86.8%).

– LUXURY MONTHLY MARKET REVIEW –

– LUXURY REPORT EXPLAINED –

The Institute for Luxury Home Marketing has analyzed a number of metrics — including sales prices, sales volumes, number of sales, sales-price-to-list-price ratios, days on market and price-per-squarefoot – to provide you a comprehensive North American Luxury Market report.

Additionally, we have further examined all of the individual luxury markets to provide both an overview and an in-depth analysis - including, where data is sufficient, a breakdown by luxury singlefamily homes and luxury attached homes.

It is our intention to include additional luxury markets on a continual basis. If your market is not featured, please contact us so we can implement the necessary qualification process. More in-depth reports on the luxury communities in your market are available as well.

Looking through this report, you will notice three distinct market statuses, Buyer's Market, Seller's Market, and Balanced Market. A Buyer's Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.

By contrast, a Seller's Market gives sellers greater control over the price point. Typically, this means there are few homes on the market and a generous demand, causing competition between buyers who ultimately drive sales prices higher.

A Balanced Market indicates that neither the buyers nor the sellers control the price point at which that property will sell and that there is neither a glut nor a lack of inventory. Typically, this type of market sees a stabilization of both the list and sold price, the length of time the property is on the market as well as the expectancy amongst homeowners in their respective communities – so long as their home is priced in accordance with the current market value.

REPORT GLOSSARY

DAYS ON MARKET: Measures the number of days a home is available on the market before a purchase offer is accepted.

LUXURY BENCHMARK PRICE: The price point that marks the transition from traditional homes to luxury homes.

NEW LISTINGS: The number of homes that entered the market during the current month.

PRICE PER SQUARE FOOT: Measures the dollar amount of the home's price for an individual square foot.

SALES RATIO: Sales Ratio defines market speed and determines whether the market currently favors buyers or sellers. A Buyer's Market has a Sales Ratio of less than 12%; a Balanced Market has a ratio of 12% up to 21%; a Seller's Market has a ratio of 21% or higher. A Sales Ratio greater than 100% indicates the number of sold listings exceeds the number of listings available at the end of the month.

SP/LP RATIO: The Sales Price/List Price Ratio compares the value of the sold price to the value of the list price.

REMAINING INVENTORY: The total number of homes available at the close of a month.

LUXURY RESIDENTIAL MARKETS

The Luxury Market Report is your guide to luxury real estate market data and trends for North America

Produced monthly by The Institute for Luxury Home Marketing, this report provides an in-depth look at the top residential markets across the United States and Canada. Within the individual markets, you will find established luxury benchmark prices and detailed survey of luxury active and sold properties designed to showcase current market status and recent trends. The national report illustrates a compilation of the top North American markets to review overall standards and trends.

The Luxury Market Report is a monthly analysis provided by The Institute for Luxury Home Marketing. Luxury benchmark prices are determined by The Institute. This active and sold data has been provided by REAL Marketing, who has compiled the data through various sources, including local MLS boards, local tax records and Realtor.com. Data is deemed reliable to the best of our knowledge, but is not guaranteed.