Why Balance Defined the November 2025 Luxury Real Estate Market

As 2025 winds down, the luxury real estate market is revealing a defining characteristic that has shaped much of the year: balance. November provided a clear snapshot of a market moving with intention: resilient, steady, and increasingly predictable.

After October’s notable uptick in activity, November eased into a more moderate rhythm. Inventory, new listings, and sales all cooled slightly, landing just under November 2024 levels. This softening aligns with typical late-fall patterns, but it also reflects a deeper structural trend: the luxury market has matured beyond the volatility of recent years and is now defined more by equilibrium than extremes.

Luxury Real Estate Trends:

Across the first eleven months of 2025, the single-family luxury market remained a standout performer with a 5.7% increase in sales compared to the same period last year. Attached properties took a more restrained path, ending January through November 2.1% below 2024 levels.

November data reinforces this story of normalization. Single-family sales dipped only 1.2% year over year and still landed nearly 20% higher than in November 2023. Attached properties posted a 5.7% annual decline yet maintained a 4.3% improvement over 2023. These dynamics show a market cooling in the short term while strengthening over a longer horizon.

Understanding the Numbers

This downshift in sales can be attributed to new listings falling sharply from October - down 33.7% for single-family homes and 29.5% for attached properties.

Seasonal slowdown explains part of the decline, but seller psychology also played a role. Like the August pause, many homeowners adopted a wait-and-see stance amid anticipated interest-rate decisions. Others, especially those with homes needing updates, appeared more inclined to wait for the stronger spring market, especially if current market conditions are not meeting their price expectations.

With fewer fresh, turnkey listings sales volumes softened. Demand didn’t disappear; buyers simply had fewer strong options.

Even with constrained activity, pricing remained firm. Homes sold closer to their asking prices compared to October, narrowing the gap and aligning closely with November 2024 performance. Attached properties saw median prices rise 2.2% year over year and 5.8% month over month, while single-family prices held steady, just 1.8% below last November, and up 2.1% from October.

These dynamics collectively reflect a market that has neither softened nor surged, but instead one that continues to find balance, despite small month-over-month and year-over-year variations. 

Interest Rates and the Luxury Housing Market:

While luxury buyers are less rate-sensitive, monetary policy still influences confidence, timing, and liquidity. December’s third U.S. Federal Reserve rate cut of the year brought the federal funds rate to 3.5%–3.75%, a move signaling that the easing cycle is nearing its end. Projections show only modest cuts ahead - one in 2026 and one in 2027 - helping set expectations for a more predictable environment.

The Bank of Canada held its overnight rate at 2.25%, expressing confidence in inflation’s trajectory and overall economic stability. This suggests Canadian mortgage rates will remain steady with potential for subtle decreases later in 2026.

For the luxury market, stable rates matter less for affordability and more for decision-making. Higher rates tend to encourage selectivity; steady or lower rates unlock pent-up demand. As we enter 2026, consistency in the rate environment will reinforce confidence on both sides of the transaction.

Buyer Behavior in 2025:

The mindset of luxury buyers in November mirrored trends seen throughout 2025. Affluent purchasers remained active but highly intentional. Homes that offer privacy, sustainability, wellness-centric design, customization, and exclusivity continue to command attention. Those lacking these elements face longer scrutiny and slower movement.

Intentional, Strategic, and Investment-Focused

Luxury real estate today functions as both a deeply personal lifestyle investment and a stabilizing asset within diversified portfolios that now include private credit, digital assets, and global equities. This dual purpose means buyers are more analytical, patient, and future oriented. When the right property does not appear, they wait—not out of hesitation, but confidence.

Sellers are adjusting accordingly. With buyers prioritizing long-term value, strategic preparation, elevated presentation, and data-driven pricing have become essential for capturing attention in a market where expectations are shifting.

What This Signals for the Luxury Real Estate Market in 2026

November’s performance provides a preview of the luxury landscape heading into early 2026—measured, stable, and defined by intention. Opportunities remain strong, but success will hinge on strategic decision-making and deep market understanding.

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