Luxury Outlook & Migrating Wealth

We appreciate the compliments to our newsletter! Our goal is to help readers find value and stay updated on the market. We are thankful to our editors and top brokers who refine our articles and market updates.

While new contracts were down by 18% compared to last year, we're pleased to report a strong start to March. Buyer showings increased by 380% during the first weekend of March compared to the first weekend of February.

The below Sotheby's International Realty® 2025 Luxury Outlook℠ report explores global trends in high-end residential markets and forecasts key developments for the year ahead. It highlights how the $84 trillion intergenerational wealth transfer will reshape investment dynamics, while anticipated price normalization in 2025 may present strategic entry points in key markets.

Following a year defined by complex political landscapes and shifting global economic dynamics, the luxury property market continues to demonstrate resilience. Bank of America Private Bank reports high-net-worth individuals are allocating 32% of their investment portfolios to real estate, while PricewaterhouseCoopers predicts we are on the cusp of the next real estate cycle upturn. In other words, now is the time to begin planning.

The report also explores the global cities that are consistently cited as the best places to live and the impact these rankings have on pricing and inventory. Here in Coastal Delaware, opportunities for investment are still available, whether it be a well-priced single-family home rental opportunity or a larger property zoned for development.

Millionaires are on the move! The great wealth migration, which paused briefly during the pandemic, hit record levels in 2024 as an estimated 128,000 high-net-worth individuals (HNWIs) migrated to new countries, according to the 2024 Henley Private Wealth Migration Report. Click the below link to read this fascinating article.

Coastal Delaware Activity
Our local luxury market has been on a steady upswing since 2020, as indicated by the increased demand for homes over the $1M threshold:

• 489 homes sold over $1M in 2024
• Avg. luxury home price increased over 8% in 2024.
• Highest luxury sale of 2024: Oceanfront home in North Bethany for $7,750,000
• Bethany Beach – 96 homes sold over $1M
• Rehoboth Beach – 156 homes sold over $1M
• Lewes – 108 homes sold over $1M

Our primary goal is to be your local market expert on property values, trends, and forecasts, along with providing exemplary client service. If you are considering a change in your real estate portfolio or making a move in the near future, we would be happy to assist in any way. -Henry