The Institute's Luxury Market Report serves as your guide for analyzing trends and comparative data in the top residential markets across Canada and the United States.

The report for July provides a review of the current statistics for the luxury market in North America on a month-over-month basis, as well as the 13-month trend.

As we reach the six-month mark in 2023, we conduct a comprehensive analysis of both the North American and global luxury real estate markets to understand their status and major trends.

One of the most significant trends, despite continuous reports of lower sale volumes compared to 2022, is that the North American luxury real estate market, for the most part, remains a seller's market.

In this report, we investigate the reasons behind this phenomenon, exploring the comparative decrease in sales volume in both the single-family and attached markets and the factors contributing to the ongoing favorability for sellers.

Our analysis delves into key aspects such as sales volume, existing and new inventory levels, as well as pricing, to grasp the market's shifts over the last six months.

We ask if the resilience shown in the luxury market over the last six months is indicative of the North American market entering a period of stability and sustainability.

Furthermore, we extend our examination to the global market by consulting several experts to review their predictions for the luxury real estate market on a global basis.

We review the type of markets that luxury buyers have been investing in and why diversifying their portfolio into markets outside their native market could well become a significant trend.

While the reasons for purchasing luxury real estate may evolve to satisfy immediate wants and requirements, it remains a reality that real estate will continue to be a long-term asset and a significant part of affluent individuals' investment portfolios.

It is important to understand that the art of selling and buying should always include an analytical approach to truly appreciate the realities, rather than just listening to the market rhetoric.

Click here to see The Institute’s full report.

For homeowners looking to sell or buy luxury homes in today's market, we strongly recommend working with a realtor who can provide critical knowledge about your local market, maintain a high level of security and safety during the process, and leverage technology and strategies to offer maximum exposure and assistance.

Get exclusive insights into the upper-tier real estate market at one of The Institute for Luxury Home Marketing’s live or online training sessions. Enroll today!

• The Market Composite Index, a measure of mortgage loan application volume, decreased 3.0% on a seasonally adjusted basis from one week earlier.
• On an unadjusted basis, the Index decreased 3% compared with the previous week.
• The Refinance Index decreased 3% from the previous week and was 32% lower than the same week one year ago.
• The seasonally adjusted Purchase Index decreased 3% from one week earlier.
• The unadjusted Purchase Index decreased 3% compared with the previous week and was 26% lower than the same week one year ago.
• The refinance share of mortgage activity increased to 28.9% of total applications from 28.7% the previous week.
• The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications.
• The FHA share of total applications increased to 13.3% from 12.7% the week prior.
• The VA share of total applications decreased to 11.6% from 12.1% the week prior.
• The USDA share of total applications increased to 0.7% from 0.5% the week prior.
• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.93% from 6.87%, with points increasing to 0.68 from 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from the previous week.
• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) decreased to 6.89% from 6.90%, with points decreasing to 0.58 from 0.64 (including the origination fee) for 80% LTV loans. The effective rate decreased from the previous week.
• The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.85% from 6.80%, with points increasing to 1.05 from 1.03 (including the origination fee) for 80% LTV loans.  The effective rate increased from the previous week.
• The average contract interest rate for 15-year fixed-rate mortgages increased to 6.39% from 6.37%, with points increasing to 0.78 from 0.75 (including the origination fee) for 80% LTV loans. The effective rate increased from the previous week.
• The average contract interest rate for 5/1 ARMs increased to 6.18% from 6.01%, with points decreasing to 1.16 from 1.25 (including the origination fee) for 80% LTV loans. The effective rate increased from the previous week.

MBA’s take:

“Mortgage rates edged higher the previous week, with the 30-year fixed mortgage rate’s increase to 6.93% leading to another decline in overall applications,” said Joel Kan, MBA’s vice president and deputy chief economist. “The purchase index decreased for the third straight week to its lowest level since the beginning of June and remains 26% behind last year’s levels. The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7% are crimping affordability for many potential homebuyers. The refinance market continues to feel the impact of these higher rates, and applications trailed last year’s pace by over 30% with many homeowners not looking for refinance opportunities.”