The DCMA average home values top $1M and the baseline for luxury is $2M.

Zillow Group’s research team published the results of their affordability study in April, showing, among other notable findings, that million-dollar cities are multiplying, jumping by 59, from 491 to 550 over the past last year.

With mortgage interest rates rising from 6.39% the week of May 18, 2023 to this week’s 7.02%, DC homebuyers financing homes in pricing tiers under $1M are really feeling the pinch. In May 2023, the median home price in Washington DC was $659,900 (all home types). In May 2024, it is $705,450., an increase off $45,550. And beginning this August, buyers are also being asked to guarantee their broker’s commission on top of other closing and out-of-pocket transaction costs. To say affordability is a challenge is an understatement.