​Here's how the luxury real estate market is splitting up

Luxury real estate brokers are seeing more all-cash offers, especially from ultra-wealthy clients, per a new survey of Coldwell Banker brokers

Brokerage president Jason Waugh said high interest rates and real estate's appeal as a safe haven during economic volatility are driving this trend

While high-end buyers aren't shying away from big-ticket purchases, their wish-lists have gotten longer

View of luxury waterfront s and boats along the intracoastal waterway near Jupiter Inlet in Jupiter, Florida in Palm Beach CountyRyan Tishken | Istock | Getty ImagesA version of this article first appeared in CNBC's Inside Wealth with Robert Frank, a weekly guide to the high-net-worth investor and consumer. to receive future editions, straight to your inbox

Economic uncertainty is creating a divide in the luxury real estate market between ultra-rich buyers and the merely wealthy, according to a new report from brokerage Coldwell Banker

They are also driving a substantial rise in all-cash offers

Meanwhile, affluent but less wealthy buyers are more sensitive to interest rates and are acting more cautiously, according to the report

Just over half of the surveyed agents said they had seen a slight or substantial increase in cash purchases by clients in 2025. 9% reported a decrease in those buyers in the first five months of 2025, while 45. 4% said cash purchases had held steady, according to the report

Jason Waugh, president of Coldwell Banker Affiliates, told Inside Wealth that high interest rates are a major factor behind the surge. "Cash vides a buyer with control

It vides leverage, speed and security," he said. "But it's really the elevated borrowing costs that continue to remain so high

Why absorb those costs if you have the cash to close on a real estate purchase, right. "Waugh, who got his broker license nearly 32 years ago, said real estate can be more attractive during times of economic uncertainty

Just over two-thirds of surveyed agents reported that affluent clients were maintaining or increasing their exposure to real estate, while only 11. 3% said clients' interest had decreased in favor of equities and other financial assets

The remaining 20. 6% of agents said clients had put plans on hold due to economic or stock market uncertainty. "It's been a roller coaster, and the is cyclical

I think at the end of the day, real estate is a hard asset that can preserve wealth and is a hedge against inflation," he said. "I think that data really confirms that narrative that folks see real estate as a great way to to accumulate wealth even in the the most uncertain and volatile economic environment we've navigated in well over a decade. "Get Inside Wealth directly to your inboxThe Inside Wealth by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them. here to get access today

That said, while luxury sales rose overall in the first five months of 2025, they took a hit in May, the first full month after April's stock market dip

The report, citing data from the Institute for Luxury Marketing, said luxury single-family sales dipped 4. 7% year over year while attached perty sales plummeted by 21

Agents are also seeing more clients reduce list prices in 2025 compared to recent years, according to Waugh

The median sold prices for luxury single-family and luxury-attached perties currently stand at $1. 7 million and $1. 25 million, respectively, according to the Institute for Luxury Marketing

Waugh added that buyers at all price points are more discerning than they were a few years ago

They're now asking for top-end appliances smart fridges, spa-level amenities, and indoor-outdoor living features from a fireplace to a whole kitchen

First-time luxury buyers are especially choosy, he said. "They may be stretching themselves, given the current rate environment, so they're going to be a lot more discerning in terms of evaluating where they , the amenities, the condition of the perty at move in," he said. "It's a completely new environment this year than the prior couple years. "The $5 million Trump Card faces legal challenges, limited marketRobert FrankFamily offices double down on private credit and infrastructure during private equity slump, survey findsHayley CuccinelloThe flight patterns of private-jet setters are changing, says NetJets presidentRobert Frank.