May 201703

Luxury Home Sales Increase Over 40 Percent in the Greater D.C. Region in Q1 2017

Capital Region Luxury Real Estate Report 2017Q1
May 201703

Luxury Home Sales Increase Over 40 Percent in the Greater D.C. Region in Q1 2017

The start of the new year brought an increase in home sales to the greater Washington, D.C., area’s real estate market. In the first quarter of 2017, sales of properties listed over $1 million were up 42 percent compared to the prior year, while overall home sales increased by almost 10 percent, according to the Long & Foster | Christie’s International Real Estate Q1 2017 Capital Region Market Report. The luxury market in the D.C. region consists of properties priced at $1 million and above.

“The D.C. region’s luxury real estate market enjoyed a significant boost in sales this past quarter, with over 800 high-end properties sold,” said Jeffrey S. Detwiler, president and chief operating officer of The Long & Foster Companies. “Tight inventory means it’s a seller’s market, but those who plan to buy can still take advantage of favorable mortgage rates. While the busy spring season is likely to bring more competition, our exceptional sales professionals are ready to guide buyers, sellers and investors on their journeys home.”

Within Washington, D.C., luxury home sales increased by more than 59 percent in the first quarter of the year, while median sale prices fell slightly. Average monthly inventory increased by over 28 percent, yet the average days on market remained the same as the first quarter of 2016 at 48 days. The city’s most prominent luxury neighborhoods—as rated by the percent of active listings over $1 million—included Spring Valley with 94 percent of listings falling into the luxury category, Kent with 87 percent and Georgetown with 70 percent.

Luxury real estate sales also increased in Montgomery County, Maryland, in the first quarter of 2017, with units sold growing by over 44 percent. Average monthly inventory grew by almost 22 percent compared to the first quarter of 2016, and median sale prices rose slightly. The average time properties spent on the market declined by 17 percent, selling faster than the same quarter last year. The suburban Maryland areas with most luxury homes on the market included Potomac, which had 70 percent luxury property listings, as well as Bethesda with 57 percent and Cabin John with 56 percent.

In Northern Virginia, the number of luxury properties sold in the first quarter rose by over 30 percent. Average monthly inventory of luxury homes for sale increased by nearly 11 percent for the quarter, and the median sale price decreased by 1.8 percent. The average marketing time increased by one day compared to the same quarter in 2016. Among the area’s luxury neighborhoods, McLean had the highest percent of luxury listings at 87 percent, followed by Great Falls at 77 percent and Vienna at 45 percent.

In addition to highlighting major trends in the D.C. region, the Long & Foster | Christie’s Capital Region Market Report spotlights individual neighborhoods, such as Kalorama in Washington, D.C., Arlington, Virginia, and Bethesda, Maryland. The report also summarizes the local luxury market by the types of homes (for example, single family and townhomes) sold in individual neighborhoods, providing an in-depth analysis of the residential market. You can view and download the full report by clicking here.

Long & Foster | Christie’s is the No. 1 seller of luxury homes in the Washington, D.C., region. The firm’s associates sold over 19,300 properties, valued at $10.4 billion, in the greater D.C. area in 2016. For more information about Long & Foster, visit LongandFoster.com.

Information included in the Long & Foster | Christie’s International Real Estate Q1 2017 Capital Region Market Report is based on data supplied by MRIS, which is not responsible for its accuracy. This report does not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster.