Real estate in the Washington, D.C., metro region soared in the first half of 2021, both in the traditional and luxury ($1M+) space. Sales across the market increased 33% from the same period in 2020, and the overall number of high-end homes sold more than doubled.
In the greater D.C. metro area, the overall number of homes for sale dropped 10% in the second quarter compared to the year prior, according to the local market reports. The luxury market was also afflicted by inventory challenges, with a 28% decline in properties for sale. With fewer houses on the market, homes sold faster and often for more money than in the past. The number of days that properties were listed on the market before selling dropped by double-digits in D.C., Northern Virginia, and Montgomery Country, Maryland.
“While inventory has remained low, interest rates have done the same—creating opportunities for both high-end buyers and sellers, especially those working with professional Realtors® like those at Long & Foster,” said Jeffrey S. Detwiler, president and CEO of The Long & Foster Companies. “Whether you’re shopping for a larger home, considering an investment or vacation property, or downsizing, Long & Foster offers everything you need to buy or sell a home without the complexity or uncertainty you may have experienced in the past.”
Within Washington, D.C., luxury home sales were up by a significant 135.6% in the second quarter of the year, while median sale prices rose 0.7%. Average monthly inventory decreased by 14%, and the days on market dropped 34.5% to just 19 days. D.C.’s most prominent luxury neighborhoods—as rated by the percent of active listings over $1 million—included Kent with 94% of listings falling into the luxury category and American University Park with 78%.
Luxury real estate sales jumped by 161% in Northern Virginia in the second quarter of 2021. Average monthly inventory dropped by 30.5% compared to the second quarter of 2020, while median sale prices declined slightly by .08%. The average time properties spent on the market dropped by 52.4%, selling much faster than the same quarter last year. The Northern Virginia areas with the most luxury homes on the market included Great Falls, which had 96% luxury property listings, followed by McLean with 68% and Vienna with 67%.
In Montgomery County, Maryland, the number of luxury properties sold in the second quarter rose by an astounding 145.9%. The average monthly inventory of luxury homes for sale declined by 41.3% for the quarter, and the median sale price decreased by 8.3%. The average marketing time dropped 47.7% to 23 days, down from 44 days in the same quarter in 2020. Among the area’s luxury neighborhoods, Potomac had the highest percent of luxury listings at 91%, followed by Bethesda at 47% and Chevy Chase at 44%.
In addition to highlighting major trends in the D.C. region, the reporting spotlights individual neighborhoods. It 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.