Homes priced in the top 5% of the D.C. metro market are selling as fast, or faster, than homes in the overall market, and those sellers are getting what they’re asking for, according to listing service Bright MLS’ new mid-Atlantic luxury housing report.
The report looks at the broader mid-Atlantic market, including the Baltimore and Philadelphia areas, but the list of luxury sales is dominated by the D.C. region.
A luxury home in the D.C. region is defined as one that is priced at $1.6 million or more.
In the second quarter, half all luxury homes sold were under contract in less than 8 days, and nearly half sold for above their list price. All-cash buyers accounted for 31.6% of all luxury home sales in the second quarter.
‘Luxury’ implies a market for the wealthiest of buyers, but low-seven figures does not buy mansions in the D.C. area.
“$1.6 million dollars sort of feels like a typical home in some neighborhoods in Northern Virginia and Montgomery County. That’s really a testament to the fact that demand for homes in these close-in suburbs has been so strong that the prices of homes in those neighborhoods have really been driven up in the last few years,” said Lisa Sturtevant, chief economist at Bright MLS.
Inventory of homes priced in the luxury category are rising, but Bright MLS said not fast enough to keep up with luxury demand.
In the mid-Atlantic, the District led for luxury home listings that sold, with 60 in ZIP code 20007 (Georgetown) and 45 in ZIP code 20016 (which includes Palisades, Wesley Heights and American University).
There were 75 luxury home sales in the second quarter in ZIP code 22101 (McLean, Virginia), 61 in ZIP code 20817 (Bethesda, Maryland), 52 in ZIP code 20854 (Potomac) and 43 in ZIP code 20815 (Chevy Chase).
Eight of the top 10 luxury markets in the mid-Atlantic region were in the D.C. area. Princeton, New Jersey, and Wayne, Pennsylvania were the only others on the list.
The report also listed sales in the ultraluxury market priced in the top 1% of listings, $2.3 million or more in the D.C. metro. McLean, the District, Bethesda, Chevy Chase and Annapolis dominated that mid-Atlantic list, with a total of 157 ultraluxury sales in the second quarter.
It takes at least $1 million to buy a starter home in two communities in the D.C. area. Real estate marketplace Zillow defines starter homes as those priced in the lowest one-third of homes for sale. By that math, it takes $1.18 million to buy a starter home in Chevy Chase, Maryland, and $1.17 million to buy a starter home in Great Falls, Virginia.
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