https://www.luxuryoutlook.com/luxury-outlook-report-2023/strong-appeal-for-luxury-property-despite-interest-rate-hikes
Inflation, mortgage rate, and stock market fluctuations will lift buyer demand
While inflation and stock market dips are causing skittishness among homebuyers in the low-to-middle tiers of the market, Nelson said those same factors are pushing buyers in the luxury realm to place their chips on real estate.
“[Inflation] is certainly what is on everyone’s mind,” he said. “But it actually makes investing in real estate look more attractive compared to investments in the stock market per se because real estate as a fixed asset can actually be a hedge against inflation.”
Although real estate is a hedge against inflation, it also presents a small challenge for luxury buyers who may have used mortgage loans to help make a purchase. From 2021 to 2022, 30-year fixed-rate mortgages rose from 2 to 7 percent —an interest rate that is by no means the highest ever seen — but still enough to give buyers pause before borrowing.