Best Sign That DC's Market is Becoming Like New York's: $2 Million is the New $1 Million

• December 17th 2015

by UrbanTurf Staff

UrbanTurf usually stays away from publishing rankings or lists…except at the end of the year when we look back at the best that DC’s residential real estate scene had to offer during the previous 12 months. So, this week we are looking at not only the best but the most intriguing and peculiar things that came across our radar over the course of 2015. Enjoy.

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There were a number of indicators in 2015 that pointed to the increasingly high cost of homes for sale in the District, not least of which was news that a yet-to-be completed residential project at The Wharf sold out its first phase at prices that broke the $1,000 a square foot mark.

However perhaps a better indicator was news that came in mid-November that the $1 million price point was no longer an appropriate benchmark of luxury real estate in the city.

A blog post by District Measured suggested that $1 million should no longer be used as the threshold for DC’s luxury residential market because that price range is too commonplace these days.

“The share of overall sales of single family homes valued more than $1 million has risen from only 3 percent of all home sales in 2001 to over 18 percent in 2015,” District Measured’s Steve Giachetti wrote. In contrast, only four percent of homes in the city are now valued above $2 million making it a more relevant price point for luxury and exclusivity.

With $2 million as the new $1 million, District Measured admits that this new benchmark might need to be increased again as home values in the District continue heading north. As of this writing, 6 percent of the active listings for sale in the city breach the $2 million mark.

This article originally published at https://dc.urbanturf.com/articles/blog/best_sign_that_dcs_market_is_becoming_like_new_yorks_2_million_is_the_new_1/10662.