Market Report
Presented by Michael Rankin
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Market Overview|
Washington,DCluxurymarket remainsstrong
Thefirst quarterof2023sawasteadymaintainingofthe luxurymarket hereinWashington.
Alackofinventorymeant pricesheldstrong,even increasinginsomecases.Theaveragesoldprice$3m andaboveinDC,increasedby13%and3%when comparedtoQ4,andQ12022respectively.
Despiteslightlylongerdaysonmarket,homespriced $5mandabovearesellingfornearlythefullaskingprice inQ1of2023.Ablendedaverageof94%throughthefirst quarter.
DemandfortrulyexceptionalhomesinWashington remainsstrong,andweanticipatethisdemandto continueandevengrowaswemoveintotheSpring market.
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Market Overview Washington,DC $596.19 $566.74 -5% Q1 Q4 $/Sqft SingleFamily $1,030,272 -7.7% Q1 Q4 AvgSalesPrice 96.7% 95.6% -2.2% Q1 Q4 SP/OLP 28 40 +30% Q1 Q4 DOM SP/OLP=SalesPriceasaPercentageof OrignalList Price $1,103,850
$577.03 $571.86 -1% Q1 Q4 LuxuryCondoMarket $559,591 $574,966 +3.7% Q1 Q4 96.3% 97.4% +2.2% Q1 Q4 38 44 +14.7% Q1 Q4 AvgSalesPrice $/Sqft SP/OLP DOM
Acloserlookat theLuxuryMarket
Theluxurymarket inDCgrewinthefirst quarterof2023comparedtoQ4of2022.Homes pricedabove$3mspent lesstimeonthemarket (63days,comparedto78intheprevious quarter),theysoldforgreaterpriceratiowhencomparedtotheiroriginallist price,962% comparedto951%andaveragedalargerdollar persquarefoot of$1,072 A15%increasefrom thepreviousquarter.
OutersuburbsofWashingtonsawsimilargrowthintheirluxurymarketsaswell. MontgomeryCountyinMaryland,andArlingtonandAlexandriaCountiesinVirginiasaw slightlylongerdaysonmarket (60comparedto48forQ4of2022)but sawmodest growthin salespriceratio(986%comparedto972%)andsoldfor higherdollarpersquarefoot ($731 comparedto$725)
Whencomparingthe"LuxuryMarket"in
Washington,thosehomespricedandsold above$3m,withtherest ofthemarket, Washington'sluxurymarket is demonstratingrealresilienceamidst an otherwiseturbulent market
ALuxuryMarket withmorestability
Areturntotheoffice,andanoverallreturntocitieshasservedWashingtonwell.New Pendinghomesaleshavegrownforthe3rdconsecutivemonth,andmonthsofsupply, whilestilldowncomparedtopreviousquarters,issteadilyaheadofthistimelast year.
Foreshadowingthe2023RealEstateMarket
Economistsandrealestatebrokersalikepredict uncertaintyacrosstherealestatemarket for2023. JacobChannel,senioreconomist at LendingTreeremarks,"GoingintoApril,homepricescould continuetodeclinesomewhat,thoughtheyprobablywont drasticallydecrease,norwilltheyfall everywhereKeepinmindrealestatemarketstendtobeverylocal,soevenifpricesdofall nationwide,that doesn't meanthat pricesineveryneighborhoodwilldothesame"
HereinWashington,DC theaveragesalespriceforrealestate grew1.6%YOYfromthistimein2022(what manypeople consideredastillverystrongmarket)Lookingat thefirst quarter comparedmonthtomonth-salespricesinWashingtongrew 46%fromJanuarytoFebruary
WhilepricesleveledofffromFebruarytoMarch,numberofsalesincreaseddramatically. Washingtonsaw530homescloseinthemonthofFebuary,comparedto615inMarch,that isan increaseofover14%,asignofanactivespringmarket tocome
"Keepinmindreal estatemarketstend tobeverylocal"
CitiesRemainAsImportant AsEver
Whilethedistributionofwealthacrosscountriesandregionshasevolvedsteadilyoverthepast decade,the allureofthelargest globalcities-andtheiraccompanyingluxuryrealestatelocations-hasremainedstrong. Globalcitiesremainastronghousingmarket forbothprimaryandsecondaryhomesofthewealthy Thisis bynomeansastaticprocess,however,particularlyconsideringthehugesocialandeconomicshiftsofrecent years
Beyondthesetop-tiercities,adiversemix ofurbancentersaroundtheworldarein constant flux,theirappealtothewealthy shapedbytheirincreasinglycomplex geopoliticsandtheebbsandflowsof wealthcreation anddestruction
Thepandemicmayhaveblurredsomeof theboundariesbetweentheexpectations forprimaryandsecondaryresidences, whetherforreasonsofpersonalwell being,mobility,lifestyle,securityorin responsetoanynumberoftechnological, orbusinessmodelchanges.However,the distinctionbetweenaprimaryand secondaryhome-andthusbetween distinctiveluxuryrealestatemarkets-stillstand.
ARobust Asset Class
Demandfor,andsupply of,luxuryresidentialreal estateincitiesaroundthe worldwillcontinuetobe influencedbynumerous otherfactors:political instability,residency rules,energydisruption, newtechnologies. Despiteabackdropof morevolatileglobal politicsandmorevisible east-west tensions,the globalizationofluxury realestateisatrendthat isunlikelytohalt anytime soon
Washington,DC SingleFamilyandCondos $805,903 AverageSoldPrice 44 DaysOnMarket $568.18 Avg $/Sqft Data based on 1/ 1/ 2023 - 3/ 31/ 2023 / Source: Bright MLS,Data deemed reliable,but not guaranteed Georgetown Kalorama Wesley Heights SpringValley Cleveland Park $1,761,209 AverageSoldPrice 62 DaysOnMarket $959.75 Avg $/Sqft $2,706,000 AverageSoldPrice $630.25 Avg $/Sqft 10 DaysOnMarket $4,943,375 AverageSoldPrice 120 DaysOnMarket $932.38 Avg $/Sqft $2,590,556 AverageSoldPrice $817.13 Avg.$/Sqft 5 DaysOnMarket $2,240,000 AverageSoldPrice $1,009.50 Avg $/Sqft 45 DaysOnMarket Kent $2,195,667 AverageSoldPrice $791.61 Avg $/Sqft 30 DaysOnMarket ForSale|Georgetown,DC-$13,950,000 Q1SingleFamilyNeighborhoodSales
ForSale|Potomac,MD-$49,000,000 ForSale|Forest Hills,DC-$9,950,000 ForSale|Dupont Circle,DC-$14,500,000 ForSale|WesleyHeights,DC-$7,400,000 ForSale|WesleyHeights-$5,700,000 ForSale|Kent,DC-$6,400,000 ForSale|Kalorama,DC-$6,400,000 ForSale|Kalorama,DC-$4,990,000 ExclusiveListingsRepresentedbyMichaelRankin
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