Washington D.C. Luxury Real Estate Flourishes Despite Minor Dips in Seven-Figure Sales

The landscape of Washington D.C. luxury real estate market is evolving, with seven-figure home sales now comprising a substantial 20.42% of the metropolitan area’s housing sector, according to Long & Foster’s monthly luxury insights report.

In January, the data revealed that 14.5% of homes fell within the $1.5 million to $2.5 million range, while over 5% were listed for $2.5 million or more. The median price for sales in the $1.5 million-plus category was $1.9 million.

Despite the promising figures, there was a slight dip in sales, with 146 transactions closing at $1.5 million or more, compared to 184 in the same period last year. The high-end market faces a challenge akin to the broader real estate landscape, as the supply of available properties decreased from 6.7 months to 5.8 months in the $1.5 million and above price range.

Corey Burr, Senior Vice President at TTR Sotheby’s International Realty’s The Burr Group in Friendship Heights, highlighted a 15% reduction in sales above $1.5 million within a 25-mile radius of the Capitol, comparing 2022 to 2023.

The luxury market, however, kicked off the year on a strong note, boasting remarkable sales and listings. A $10 million transaction in McLean, the auction of Jacqueline Kennedy’s property for $15 million in Washington D.C., and Dan Snyder’s $35 million property in Potomac exemplify the resilience of the high-end segment.

Buyers in the luxury bracket are willing to meet the asking prices, indicating solid support for these premium valuations. Long & Foster reported that the average sale price for homes exceeding $1.5 million in January was 96.9% of the list price, slightly higher than the previous year. However, these listings do linger on the market for an average of 70 days in January, up from 47 days in the same period last year.

The broader upward trend in prices across the D.C. region is nudging some properties into the seven-figure territory. Median prices in Alexandria, Arlington County, Fairfax and Loudoun counties, and the District all surpassed $600,000, according to Bright MLS.

Despite the challenges, Burr sees the luxury market in D.C. carving its own niche.

He remarked,

“Washington used to be kind of a secondary stepchild to the most expensive real estate markets in the country, like New York and San Francisco, Boston and Miami. But we’ve really caught up in the last 15 years. It is a testament to how well our region has grown, not just dependent on the federal government, but on so many other industries that are building up.”

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