What's happened
As of July 2025, US existing-home prices hit record highs despite falling sales, driven by undersupply and high mortgage rates. International buyers increased US property investments by 33%, with Florida leading. Hong Kong's luxury housing market shows strong sales and rising prices amid economic optimism. UK markets see rising average prices and a recovering country house segment, while Scotland's housing remains fragmented with regional disparities.
What's behind the headline?
US Housing Market Dynamics
- The US market is characterized by record-high median home prices ($435,300) but declining sales, reflecting a supply-demand imbalance exacerbated by high mortgage rates.
- Sellers are increasingly delisting homes rather than lowering prices, maintaining high price expectations despite buyer-friendly conditions.
- International buyers are fueling demand, with a 33% increase in dollar volume and a preference for cash purchases, particularly in Florida and California.
Hong Kong's Luxury Market Resilience
- Despite a broader market slowdown, luxury flats and villas in Hong Kong are selling robustly, supported by government policies easing investment immigration and a booming IPO market.
- High-profile buyers and financial executives are betting on a housing recovery, with prices expected to rise over the next four to five years.
UK and Scotland Housing Trends
- The UK housing market is forecast to surpass £300,000 average prices in 2025, driven by renewed buyer demand and developer activity unlocking equity.
- Country house sales in the UK are rising amid falling prices, creating a more favorable buyer market after years of high demand.
- Scotland's housing market remains fragmented, with cities like Glasgow showing strong growth, Edinburgh moderate gains, and Aberdeen stabilizing at lower levels due to economic shifts.
Broader Implications
- High mortgage rates and economic uncertainty continue to limit first-time buyers, pushing younger demographics toward renting.
- The luxury segment, especially in US cities like Manhattan and emerging markets like Davidson, NC, remains buoyant, driven by cash buyers and lifestyle factors.
- The divergence between luxury and affordable housing markets highlights growing inequality and challenges for broader market accessibility.
This multifaceted landscape suggests that while luxury and international investment buoy certain segments, affordability and supply constraints will continue to challenge many prospective homeowners globally.
What the papers say
Business Insider UK highlights the US housing market's paradox: "existing-home prices jumped last month, with the median price reaching $435,300," yet sales fell 2.7% in June, with sellers often "removing their homes from the market rather than negotiating or lowering prices." Realtor.com's report echoes this, noting a 35% year-to-date spike in delistings, signaling sellers' reluctance to lower prices despite buyer-friendly momentum.
The NY Post reports a 33% increase in international buyers investing $56 billion in US residential real estate, with Lawrence Yun stating, "International interest in buying US real estate increased following the global economic recovery." Florida remains the top destination, accounting for 21% of purchases.
South China Morning Post details Hong Kong's luxury market, where "all 138 units from the initial batch sold out within hours," and Morgan Stanley predicts a "four-to-five-year upward cycle" in housing prices. Centaline Property notes a 23.3% rise in villa transactions in the first half of 2025, driven by "improved sentiment" and government immigration policies.
The Independent forecasts UK house prices surpassing £300,000 in 2025, supported by rising demand and developer activity. Meanwhile, The Scotsman describes Scotland's fragmented market, with Glasgow's prices up 8.7% and Aberdeen stabilizing at lower levels due to energy sector impacts.
Knight Frank, via The Guardian, reports a 7% rise in UK country house sales in June amid falling prices, describing it as "the most favourable market for buyers in the country for seven years." Bloomberg highlights a plunge in affordable housing supply in the US, with the segment's share dropping from 54% in 2018 to 22% in 2025.
These sources collectively illustrate a complex global housing market marked by luxury market strength, international investment, and persistent affordability challenges.
How we got here
Years of undersupply and high mortgage rates have constrained US home sales despite rising prices. Globally, luxury and premium housing markets are influenced by economic recovery, government policies, and demographic shifts. In the UK, rising demand and developer activity support price growth, while Scotland's market reflects local economic factors. Hong Kong's luxury segment benefits from relaxed immigration rules and stock market gains.
Go deeper
- Why are US home sales falling despite rising prices?
- How is international investment affecting US real estate?
- What factors are driving Hong Kong's luxury housing boom?
Common question
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What is Driving Davidson's Real Estate Boom?
Davidson, North Carolina, has become a hot spot for real estate, especially since the pandemic. With home prices skyrocketing and demand surging, many are curious about what factors are fueling this boom. Below, we explore the key elements contributing to Davidson's housing market transformation and answer common questions about its future.
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Why Are Prime Day Discounts So Weak This Year?
Prime Day 2025 has extended to four days, but many shoppers are noticing that discounts aren't as deep as in previous years. This shift is driven by economic pressures like tariffs and inflation, which are limiting sellers' ability to offer big discounts. Despite the smaller discounts, online shopping activity is expected to rise, making this a unique shopping event worth understanding. Below, we explore the reasons behind the subdued discounts and what it means for consumers and retailers alike.
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Will UK House Prices Surpass £300K in 2025?
With UK property prices forecasted to rise in 2025, many are wondering if we’ll see homes exceeding £300,000. Demand is increasing, and market activity is picking up, but what does this mean for buyers and investors? Below, we explore the key factors driving the market, compare luxury markets globally, and answer common questions about what to expect in the UK housing scene this year.
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Why Are Luxury Property Markets Booming in 2025?
Luxury real estate is experiencing a global surge in 2025, with markets in Hong Kong, Florida, the UK, and Manhattan showing remarkable growth. But what's driving this boom, and what does it mean for buyers and investors? Below, we explore the key trends and answer common questions about the luxury property market this year.
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Why Are US Home Sellers Delisting Instead of Lowering Prices?
In 2025, the US housing market is experiencing a unique trend: sellers are increasingly removing their homes from the market rather than reducing prices. This shift raises questions about market dynamics, seller strategies, and future trends. Why are sellers choosing to delist rather than lower prices? How does this impact buyers and the overall market? Below, we explore these questions and more to help you understand the current housing landscape.
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Why Are US Home Sellers Delisting Instead of Lowering Prices?
In 2025, US housing markets are experiencing a unique trend where sellers are choosing to delist their homes rather than reduce asking prices. This shift raises questions about market dynamics, seller strategies, and future trends. Below, we explore the reasons behind this phenomenon and what it means for buyers and investors alike.
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