WASHINGTON, DC–The average price for a luxury home in the Washington DC area jumped 32.6% in the first quarter compared to the same period last year, according to Redfin. This was a reversal of a year-long trend of declining prices in this housing segment.
Home purchases by Trump appointees helped move the needle.
Treasury Secretary Steve Mnuchin paid $12.6 million in February for a house in Massachusetts Avenue Heights. Also in February, Secretary of State Rex Tillerson reportedly bought a home in the Kalorama neighborhood for $5.5 million. Secretary of Commerce Wilbur Ross purchased a Beaux Arts mansion at 2850 Woodland Dr., NW for $10.75 million in late January. Trump advisor Kellyanne Conway is rumored to be under contract on a $8 million villa, according to Redfin.
“Trump's cabinet has been billed as the wealthiest in history and they've certainly made a mark on the high-end real estate market here,” said Michael Alderfer, a local Redfin agent, in a prepared statement. “We don't typically see many home sales over $10 million in a year. To have two back-to-back is significant.”
Other markets saw a jump although nothing close to the heights that Washington, DC achieved in the first quarter.
In general luxury home prices rose 4.2% in the first quarter of 2017 compared to 2016, to an average of $1.65 million, according to Redfin's luxury housing market report.
“After tepid price growth in the luxury segment throughout 2016, the luxury market rallied at the start of the year, following big gains in the stock market,” said Redfin chief economist Nela Richardson.
Richardson added that luxury buyers may be more optimistic about the economic outlook because of expected tax cuts.
WASHINGTON, DC–The average price for a luxury home in the Washington DC area jumped 32.6% in the first quarter compared to the same period last year, according to Redfin. This was a reversal of a year-long trend of declining prices in this housing segment.
Home purchases by Trump appointees helped move the needle.
Treasury Secretary Steve Mnuchin paid $12.6 million in February for a house in
“Trump's cabinet has been billed as the wealthiest in history and they've certainly made a mark on the high-end real estate market here,” said Michael Alderfer, a local Redfin agent, in a prepared statement. “We don't typically see many home sales over $10 million in a year. To have two back-to-back is significant.”
Other markets saw a jump although nothing close to the heights that Washington, DC achieved in the first quarter.
In general luxury home prices rose 4.2% in the first quarter of 2017 compared to 2016, to an average of $1.65 million, according to Redfin's luxury housing market report.
“After tepid price growth in the luxury segment throughout 2016, the luxury market rallied at the start of the year, following big gains in the stock market,” said Redfin chief economist Nela Richardson.
Richardson added that luxury buyers may be more optimistic about the economic outlook because of expected tax cuts.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
