Busy at the Top: What is Driving a 45-Day Surge in DC's Luxury Housing Market
The DC area is not known for the level of home prices that buyers see in New York or Los Angeles, where home sales above $15 million are common. But one wouldn’t necessarily know that based on recent activity in our region.
In late October, River View, a portion of George Washington's Mount Vernon estate, sold for $48 million, becoming the most expensive piece of residential real estate to ever sell in the DC region.
Days later, the McLean home of former Washington Nationals pitcher Max Scherzer hit the market for $15 million and then found a buyer the very next day.
story continues belowloading...
story continues above
And then ten days ago, a three-bedroom penthouse at the Ritz-Carlton in DC's West End neighborhood sold for $9.15 million, making it the most expensive condo to ever sell in the city.
“We view the market above $6 million as ultra luxury and there has been a significant uptick in that segment over the last 45 days,” Robert Hryniewicki of HRL Partners at Washington Fine Properties told UrbanTurf. “Four of the top ten sales of the year have happened in the last 30 days.”
The statistics reveal that it is not just the last several weeks that is setting 2021 apart when it comes to the highest priced real estate in the region. The number of sales in the DC area above $2.5 million this year is double what it was in 2019, according to Bright MLS. The number of homes selling above $5 million has tripled during that time.
“Higher-end housing was particularly in demand from high-income buyers in the region who had secure jobs during the pandemic and saw their personal financial situations improve,” Bright MLS Economist Advisor Dr. Lisa Sturtevant told UrbanTurf. “Overall savings rates surged, as these households had less to spend their money on. As a result, they had more to put towards a home.”
Tax scenarios are also playing a role.
“Clients in the upper brackets are focused on two things right now: lifestyle and taxes,” Mark Lowham, CEO of TTR Sotheby’s International Realty, told UrbanTurf. “Virginia offers a relatively attractive tax structure, so we are also seeing movement into Virginia from higher tax states like California.” Of the top ten home sales in the region so far this year, 60% of the buyers lived in the area, two were from New York, one was from Silicon Valley and one was from London.
Owners of other high-end homes in the region seem to be taking notice of recent sales. Not long after the Mount Vernon estate sold, Mark Lowham listed Easter Hill, a 4-acre estate in McLean overlooking the Potomac River, for $21 million.
And it appears the interest level remains.
“I just got off the phone with a buyer in another part of the country who will be in town in the coming months,” Robert Hryniewicki told UrbanTurf. “Their budget is anywhere from $8 million to $20 million.”
See other articles related to: dc area market trends, luxury condos dc, luxury real estate dc, luxury real estate mclean, river view, ttr sothebys international realty, washington fine properties
This article originally published at https://dc.urbanturf.com/articles/blog/busy-at-the-top-what-is-driving-a-45-day-surge-in-dcs-luxury-housing-matket/19008.
Most Popular... This Week • Last 30 Days • Ever
Ten years later, plans to construct nearly 150 townhomes at DC's most hotly debated d... read »
LEGO lovers will likely be first in line for the National Building Museum's latest ex... read »
JBG Smith has plans for a seven-story project along Crystal Drive.... read »
The "trailer park" where homes sell for millions; a renters utopia; and ideas for whe... read »
Airbnb's party crackdown; the return of Adams Morgan; the resurgence of Cleveland Par... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The 23,600 square-foot mansion just hit the market, and would set a record if it fetc... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- DC's Blaine Mansion Lists For $30 Million, A Potentially Record-Setting Price in the City
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro