Washington's wealthiest homebuyers aren't slowing down
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It's a seller's market in Washington — if you're a one-percenter, that is.
The big picture: The DMV's real estate scene still looks very different depending on which submarket you're in — the luxe side of things, or anywhere else.
- While Washington's broader market got a spring boost, high borrowing costs and economic uncertainty have overall cooled activity enough that some now consider it a buyer's market.
Luxury clients, meanwhile, are less sensitive to those pressures — helping keep the high-end market hot. Sellers still have the upper hand amid tight supply and outsized demand, per a new report from Bright MLS.
By the numbers: Washington's luxury sales jumped 4.5% during this year's second quarter when compared with the same period last year.
- Meanwhile, its number of new luxury listings dropped 13.1%.
Luxe home prices are rising as a result: The DMV threshold for what constituted a luxury sale was $1.9 million during the second quarter, up 5.6% from the same time last year.
- Luxury homes are also selling faster, with a median of eight days on the market compared with Washington's overall median of nine days.
Zoom in: The Mid-Atlantic's priciest second-quarter home sale was a $12.8 million Potomac riverfront home in McLean — which was actually just one sale making up a $25 million compound, reports the Washington Business Journal.
- More than half the second-quarter sales in McLean were luxury homes, and it had the Mid-Atlantic's highest number of luxe sales overall.
- All in all, five of the Mid-Atlantic's top 10 ZIPs for luxe sales were in the DMV, as Georgetown, Upper Northwest, Vienna and Bethesda all made the list.
What they're saying: Northern Virginia's luxury market has been especially busy because of this constrained inventory, says real estate agent Robert Hryniewicki of HRLS Partners.
- It's an area that has more available high-end properties with the large lots and big square footage many of these buyers want. (For instance: One of Hryniewicki's recent clients wanted separate offices — for their high schoolers.)
Between the lines: Cash is still king for high-end buyers: About a third (32%) of DMV luxe sales were all-cash, compared with 17% of all transactions.
- The Mid-Atlantic areas with the most all-cash transactions? The Eastern Shore and Delaware/Maryland coast — aka the land of bougie vacay pads.
What we're watching: The luxe market is expected to keep outpacing the broader market, with "few downside risks on the horizon," per Bright.
- And expect the pricey prices to keep rising as inventory stays tight.