DC’s Million Dollar Real Estate Market
$1 million doesn’t go as far as it used to in the DC market.
What is happening: A new analysis from Zillow found that 11 DMV cities and neighborhoods have a typical home value of $1 million or more. Nationally, the number of cities on the million dollar list increased by 44%.
Why is this important: The rate of appreciation is exciting for sellers but disheartening for buyers who face low inventory and high prices as the threat of higher interest rates looms.
The plot: The $1 million price tag is below the area’s luxury level and doesn’t guarantee a single-family home in the DC market, says Christine Walker, agent at CENTURY 21 Redwood Realty. Plus, local buyers with million-dollar budgets aren’t always very wealthy.
- “They’re working class DC…they’re not mega-rich,” the real estate agent said. “They’re saving up and they’re taking high-powered, high-demand jobs, and they’re outbidding left and right.”
- In most cases Walker tells buyers not to give up, even in this market, but for the first time in her career, she told some buyers (with reasonable home needs and within their budget) to “try later “because there was nothing on the market that matched their price.
Enlarge: Great Falls, Virginia; Chevy Chase, MD; Chevy Chase View, MD; McLean, Virginia; and Cabin John, MD have the highest typical home values in the DC area, according to Zillow.
- Home values in these areas have increased by 6% to 12% in 2021.
By the numbers: Bright MLS data revealed that in the fourth quarter of 2021, the number of homes for sale fell 46% from the fourth quarter of 2020. The median home price for DC was $695,000.
Yes, but: Spring could bring good news for buyers, says Walker. Spring is the most popular time to put a home on the market, so higher inventory is expected.
“I fell in love with DC because it was that kind of place where you could start somewhere and progress,” says Walker, who came to DC as a member of Hill’s staff in 2002. isn’t that story right now and that’s not good because that’s the kind of people DC is made of.”