Modestly-falling home prices have shaved off the top of the D.C. region’s housing market, with the number of homes valued at $1 million or more falling.
That matches a national trend.
Redfin reports that in January, 10.8% of all homes in the D.C. metro were valued at $1 million or more, down from 11.2% a year earlier.
The median price of all homes sold in the D.C. region in January was 1.3% lower than December. Prices peaked in May 2022, with the median price now 15% below that peak level, according to listing service Bright MLS.
Nationwide, Redfin reports the share of homes worth at least $1 million has fallen from 8.6% a year ago to 7% now, as the housing market cools.
Home prices have been cooling almost entirely because of rising mortgage rates. And the rise in rates has been significant.
“Home values are coming down from their peak and fewer sellers could fetch seven figures. But that doesn’t mean buyers are getting a break,” said Chen Zhao, Redfin economics research lead. “The typical homebuyer’s monthly mortgage payment is even higher than it was when home values peaked in the spring because rates are so much higher.”
According to Redfin, buying an $800,000 home today would cost more than buying a million-dollar home a year ago, based on current mortgage rates and payments.
The share of U.S. homes worth seven figures has still nearly doubled since before the pandemic.
The share of homes valued at seven figures is falling the fastest in the Bay Area. The share of homes worth $1 million or more in San Francisco tops the list, at 80%, though that is down from 86.3% a year ago.
Florida is an exception, where the share of million-dollar plus homes is higher than a year ago. In Miami, 14.4% of homes were valued at $1 million or more in January, up from 11.5% a year earlier.
Redfin’s full list of share of homes valued at $1 million or more in January by metro area is available online.