DC luxury homes

DC Among Metro Areas With $1M+ Value Averages

High Value Metro Areas

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.

High-Value Metro Areas

Most real estate experts predict buyers will re-enter the market en masse when the Fed starts to cut rates. But that will only put upward pressure on prices due to supply vs demamd. Bidding wars will once again become common, and offers will be expected to have few or no contingencies. The smart play for financing buyers who are able, is to purchase before August, with cooperative commission posted on MLS and a loan program that offers a lower than market rate, and refinance in 2025 or 2026.

New York and California ranked highest in the study for the number of $1M+ cities within a metro area. See more on the study here:

error: This content is copyrighted and protected