Luxury homes in the Washington D.C. area are selling at a rapid pace, with sellers often receiving their asking price or even more, according to a new report from listing service Bright MLS. The report focuses on the mid-Atlantic region, including Baltimore and Philadelphia, but the majority of luxury sales are concentrated in the D.C. area.
In this market, a luxury home is defined as one priced at $1.6 million or more. Despite the high price tag, these homes are in high demand, particularly in close-in suburbs like Northern Virginia and Montgomery County. Lisa Sturtevant, chief economist at Bright MLS, notes that $1.6 million may not buy a mansion in the D.C. area, but it is becoming increasingly common for homes in certain neighborhoods.
In the second quarter, half of all luxury homes sold were under contract in less than 8 days, with nearly half selling above their list price. Cash buyers accounted for over 30% of luxury home sales during this period. While inventory of luxury homes is increasing, it is not keeping up with demand, leading to competitive bidding and quick sales.
The D.C. region led in luxury home listings sold, with Georgetown and other affluent neighborhoods seeing significant activity. McLean, Virginia, Bethesda, Maryland, and Chevy Chase were also top contenders for luxury home sales in the second quarter. The report also highlighted sales in the ultraluxury market, with homes priced at $2.3 million or more. McLean, Bethesda, Chevy Chase, and Annapolis were among the top locations for ultraluxury sales.
Interestingly, it now takes at least $1 million to buy a starter home in certain communities in the D.C. area. According to Zillow, starter homes are defined as those priced in the lowest one-third of the market. In Chevy Chase, Maryland, and Great Falls, Virginia, the price for a starter home exceeds $1 million, reflecting the high cost of entry into these sought-after neighborhoods.
As the luxury real estate market in the D.C. area continues to thrive, it is evident that buyers are willing to pay a premium for desirable properties in prime locations. With strong demand and limited inventory, sellers are in a favorable position to capitalize on the competitive market conditions. It remains to be seen how these trends will evolve in the coming months, but for now, luxury homes in the D.C. area are selling quickly and at top dollar.