Economic factors make some luxury homebuyers hesitate

As economic turbulence continues to rock consumer confidence, some potential luxury homebuyers hesitate to make significant investments.

The fluctuation in tariffs and the unpredictable trajectory of the stock market made potential buyers wary, leaving some sellers feeling panicked over their listings.

“It’s definitely keeping many clients and cash on the sidelines,” said Delroy Gill of LIV Sotheby’s International Realty.

After showing a property to a potential buyer with the financial means to make a purchase, the prospective client opted not to make an offer.

“He has the funds and ability to purchase, but doesn’t want to buy right now due to the erratic plan on tariffs and the undecided direction of the stock market,” Gill said.

The pressures of market volatility have led some clients to contact their agents with specific demands. Gill mentioned receiving messages from potential buyers asking sellers to lower their listing prices.

“They want potential sellers to lower their list prices if they want buyers to pull the trigger on a home we’ve previously seen,” he said.

Andrew Abrams of Guide Real Estate has faced similar challenges. He had one buyer back out of a deal, while a seller decided it was best to take his house off the market, opting to list the property as a rental.

Some potential buyers put a hard stop on their home search efforts.

“People are waiting to see how everything shakes out,” Abrams said.

Colleen Covell with Compass said she’s also experienced potential buyers decide against making offers because they are worried about the economy. She’s also seen buyers who have stopped looking and are considering moving out of the country.

With more inventory available, buyers have become exceedingly picky. She said homes may sit if they aren’t move-in ready and priced aggressively.

“With interest rates and high prices, buyers won’t make an offer unless the house blows them away,” she said. “I had one buyer who didn’t like a door and left.”

Mckenzie Casey of LIV Sotheby’s International Realty said the economic uncertainty may affect buyers at a lower price point more than luxury buyers with more options to make all-cash purchases.

She said luxury buyers may now find they have more power, especially to negotiate lower prices for listings that have been on the market for six weeks or more.

Nick DiPasquale, with NookHaven Real Estate and a member of the Denver Metro Association of Realtors’ trends committee, said that although April recorded a notable 17% increase in new listings priced over $1 million, pending sales fell by 13%.