First Quarter Market Report 2023

First Quarter 2023 Market Report

Presented by Michael Rankin

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Market Overview | Washington, DC luxury market remainsstrong The first quarter of 2023saw asteady maintaining of the luxury market here in Washington.

A lack of inventory meant prices held strong, even increasing in some cases. The average sold price $3m and above in DC, increased by 13%and 3%when compared to Q4, and Q12022 respectively.

Despite slightly longer dayson market, homespriced $5m and above are selling for nearly the full asking price in Q1of 2023. A blended average of 94%through the first quarter.

Demand for truly exceptional homesin Washington remains strong, and we anticipate thisdemand to continue and even grow aswe move into the Spring market.

Michael Rankin Managing Partner C.202.271.3344 E.michael.rankin@sir.com michaelrankindc.com

Market Overview Washington, DC

Single Family Avg SalesPrice $/ Sqft Q1

Q4

Q1

Q4

$1,030,272

$1,103,850

$566.74

$596.19

- 7.7%

- 5%

SP/OLP

DOM

Q1

Q4

Q1

Q4

95.6%

96.7%

40

28

- 2.2 %

SP/OLP =SalesPrice asaPercentage of Orignal List Price

+30%

Luxury Condo Market Avg SalesPrice $/ Sqft Q1

Q4

Q1

Q4

$574,966

$559,591

$571.86

$577.03

+3.7%

-1%

SP/OLP

DOM

Q1

Q4

Q1

Q4

97.4%

96.3%

44

38

+2.2%

+14.7%

A closer look at the Luxury Market The luxury market in DC grew in the first quarter of 2023compared to Q4 of 2022. Homes priced above $3m spent lesstime on the market (63days, compared to 78 in the previous quarter), they sold for greater price ratio when compared to their original list price, 96.2% compared to 95.1%and averaged alarger dollar per square foot of $1,072. A 15%increase from the previousquarter.

Outer suburbsof Washington saw similar growth in their luxury marketsaswell.

Montgomery County in Maryland, and Arlington and AlexandriaCounties in Virginiasaw slightly longer days on market (60 compared to 48 for Q4 of 2022) but saw modest growth in salesprice ratio (98.6%compared to 97.2%) and sold for higher dollar per square foot ($731 compared to $725).

When comparing the "Luxury Market" in Washington, those homespriced and sold above $3m, with the rest of the market, Washington'sluxury market is demonstrating real resilience amidst an otherwise turbulent market.

A Luxury Market with more stability

A return to the office, and an overall return to citieshas served Washington well. New Pending home sales have grown for the 3rd consecutive month, and monthsof supply, while still down compared to previousquarters, issteadily ahead of thistime last year.

Foreshadowing the 2023Real Estate Market Economistsand real estate brokersalike predict uncertainty across the real estate market for 2023.

Jacob Channel, senior economist at Lending Tree remarks, "Going into April, home pricescould continue to decline somewhat, though they probably wont drastically decrease, nor will they fall everywhere. Keep in mind real estate markets tend to be very local, so even if pricesdo fall nationwide, that doesn't mean that pricesin every neighborhood will do the same." in Washington, DC. the average sales price for real estate "Keep in mind real Here grew 1.6%YOY from thistime in 2022 (what many people estatemarketstend considered astill very strong market) Looking at thefirst quarter compared month to month - salespricesin Washington grew tobevery local" 4.6%from January to February.

While pricesleveled off from February to March, number of salesincreased dramatically.

Washington saw 530 homesclose in the month of Febuary, compared to 615in March, that is an increase of over 14%,asign of an active spring market to come.

CitiesRemain AsImportant AsEver While the distribution of wealth acrosscountriesand regionshasevolved steadily over the past decade, the allureof the largest global cities- and their accompanying luxury real estate locations- hasremained strong.

Global citiesremain astrong housing market for both primary and secondary homes of the wealthy. Thisis by no meansastatic process, however, particularly considering the huge social and economic shiftsof recent years.

Beyond these top-tier cities, adiverse mix of urban centersaround the world are in constant flux, their appeal to the wealthy shaped by their increasingly complex geopoliticsand the ebbsand flows of wealth creation and destruction.

The pandemic may have blurred some of the boundariesbetween the expectations for primary and secondary residences, whether for reasonsof personal well being, mobility, lifestyle, security or in response to any number of technological, or businessmodel changes. However, the distinction between aprimary and secondary home - and thusbetween distinctive luxury real estate markets-still stand.

A Robust Asset Class Demand for, and supply of, luxury residential real estate in citiesaround the world will continue to be influenced by numerous other factors: political instability, residency rules, energy disruption, new technologies.

Despiteabackdrop of more volatile global politicsand more visible east-west tensions, the globalization of luxury real estate isatrend that isunlikely to halt anytime soon.

Washington, DC Single Family and Condos

$805,903 Average Sold Price

$568.18

44

Avg. $/Sqft

DaysOn Market

For Sale | Georgetown, DC - $13,950,000

Georgetown

Kalorama

$1,761,209

$2,706,000

Average Sold Price

Average Sold Price

62

$959.75

10

$630.25

DaysOn Market

Avg. $/Sqft

Days On Market

Avg. $/Sqft

Wesley Heights

Spring Valley

$4,943,375

$2,590,556

Average Sold Price

Average Sold Price

120

$932.38 Avg. $/Sqft

DaysOn Market

5 Days On Market

$817.13 Avg. $/Sqft

Kent

Cleveland Park

$2,195,667

$2,240,000

Average Sold Price

Average Sold Price

30

$791.61

45

$1,009.50

DaysOn Market

Avg. $/Sqft

Days On Market

Avg. $/Sqft

Q1Single Family Neighborhood Sales Data based on 1/ 1/ 2023 - 3/ 31/ 2023 / Source: Bright MLS, Data deemed reliable, but not guaranteed.

For Sale | Potomac, MD - $49,000,000

For Sale| Forest Hills, DC - $9,950,000

For Sale | Dupont Circle, DC - $14,500,000

For Sale | Wesley Heights, DC - $7,400,000

For Sale | Wesley Heights- $5,700,000

For Sale| Kent, DC - $6,400,000

For Sale | Kalorama, DC - $4,990,000

For Sale | Kalorama, DC - $6,400,000

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