Sotheby’s International Realty’s Mid-Year Luxury Outlook report provides an insightful breakdown and analysis of the events and trends impacting high-end residential real estate markets across the globe. If you’ve been wondering where the market is heading for the rest of the year and how these changes could affect your own selling or buying journey, then read on for my summary of the report’s “Economic Bellwether” section.

Where are interest rates headed? This is an uncertainty that has affected buyers attempting to budget for their home-owning goals and sellers who are hesitant to trade in their current low rates for higher ones and risk listing their homes in a less active market. However, with rates at their lowest since March 2023, the market, and those who participate in it, might finally be experiencing some relief. As the report predicts, as well as nearly all industry publications and trusted forecasters, the decreases are likely to continue, with rates finally dropping below 6% in 2025.

“As buyers see lower rates, they will be less worried about the ‘lock-in effect’—the hesitancy of selling their house if it means taking out a higher-rate mortgage for their next home,” says Anthony Chan, former chief economist of JPMorgan Chase. Of course, continued low inventory levels and projected price growth (potentially by 5% in 2024 and 3.7% in 2025, according to the report) also affect buyers. However, there is more good news! Regional inventory levels are up, with NWMLS’ latest monthly report sharing that as of August, there has been a 34.1% year-over-year increase in new listings.

If you feel inspired by the report’s findings to purchase or sell in 2025—and I think you definitely have cause to feel inspired—then I’d recommend you start preparing now. Get ahead of the curve and strike sooner rather than later, before competition ramps up. Reach out to me today if you’d like to discuss your goals.