Sotheby’s International Realty’s annual Luxury Outlook provides a deep dive into the trends that shape the luxury real estate market. From a look at luxury inventory levels in 2025 (which were at their highest since before the pandemic) to the buying trends that affect the high-end market versus the general market, the report provides insight into how real estate works at the luxury level. Broader factors, like the global economy, politics, and worldwide sporting events, also play into the market. Explore the full report below and keep reading for our top highlights and their relevance in your own buying, investing, or selling journey.
Stability in the Luxury Market
One of the key takeaways from the report is that the luxury real estate market outperformed the general market last year. Although mortgage rates continue to impact homebuyers at all price points, high-net-worth individuals (HNWIs) are less affected, with all-cash offers increasing in 2025.
As outlined in Futurecast Forum’s Top 10 Trends series, younger buyers inheriting wealth from their parents entered the market, and this generational shift will continue to shape trends in the coming years. “We’re also seeing that luxury homebuyers are younger, which is a function of wealth creation and the transfer of wealth to a new generation,” said Philip A. White Jr., President and CEO of Sotheby’s International Realty. “This is in contrast to the overall housing market, where homebuyers are older.”
What Luxury Buyers Are Prioritizing
In addition to portfolio-boosting properties, luxury buyers are drawn to lifestyle-forward locales like Aspen, which offers access to some of the top ski destinations and broke records with a $300 million property, listed by Aspen Snowmass Sotheby’s International Realty, as the most expensive home ever listed in the United States.
The report outlines that it’s not just lifestyle-forward locations that buyers are prioritizing, but also home features. “Additionally, the wellness trend has evolved since the pandemic, with homebuyers prioritizing in-home spas and hotel-style amenities, particularly in branded residences,” said White. Strategically listing a luxury home with the potential buyer in mind, one who values wellness and the convenience of being able to practice self-care in the home, will aid sellers as they market their properties.
It doesn’t stop at wellness either, with peace of mind from security features—like gated entry—proving popular with discerning buyers. Buyers don’t want to sacrifice ease for security either, and smart-home security is becoming a top feature that they search for. In a 2026 Sotheby’s International Realty agent survey, 81% of agents said security and privacy were a top concern for homebuyers.
In the luxury market, discretion is imperative for certain buyers, and an advisor’s ability to protect a seller’s privacy while ensuring that it is marketed to a wide audience is a dance that Sotheby’s International Realty agents are adept at.
How Sellers Can Prepare for 2026
While the overarching picture of luxury inventory is one of growth, each market varies, and not all places saw the same boost (with inventory in the capital cities of Europe still low, amongst others).
In cities that have seen major boosts in inventory, like Houston, Texas, sellers would be wise to price their home at its value, encouraging a multiple-offer scenario versus overpricing it and running the risk of the listing sitting on the market for an extended period of time. As the report advises, “Success requires identifying markets where supply and demand create leverage, while recognizing that premier locations continue to reward decisive, cash-ready purchases.”
The Power of a Worldwide Sporting Event
It’s not news to any Seattleite that the city will host several of the World Cup soccer games happening in the summer of 2026, as will other major North American cities like Philadelphia and Mexico City. Just two years after that, Los Angeles will host the summer Olympics. The United States is going to see a boom in what Andrew K. Rose and Mark M. Spiegel deemed the “Olympic Effect,” or the economic and real estate market boost that cities hosting worldwide sports events reap the benefits of.
Taking advantage of the increased infrastructure and booming tourism that these high-profile events encourage will put sellers ahead of the curve.
The full Luxury Outlook report is more than an insightful look into the high-end markets across the globe; it is a tool for buyers, sellers, and investors as they explore their own options in the 2026 market.
If you’re hoping to start your journey, around the corner or around the world, reach out to an experienced RSIR advisor today. They’re tapped into the trends that are shaping the market and equipped with the data and strategies to make the most out of these exciting shifts.