A new report has shed light on what many have speculated since President Donald Trump took office: that the apparently wealthiest cabinet in history will boost the luxury property market in and around the nation’s capital.
The average price of luxury homes in Washington, D.C., surged 32.6% to $2.7 million in the first quarter, as a result of several deals by new cabinet members, according to Redfin’s luxury market report published Thursday. Redfin defines luxury homes as the top 5% most expensive homes in the city.
“Trump’s cabinet has been billed as the wealthiest in history and they’ve certainly made a mark on the high-end real estate market here,” Michael Alderfer, a Redfin agent in Washington, D.C., said in the report.
The two most expensive homes sold in the district in the first quarter were purchased by billionaires in Trump’s cabinet. Treasury Secretary Steve Mnuchin bought a home for $12.6 million in February, while Secretary of Commerce Wilbur Ross purchased a mansion for $10.75 million in late January.
“We don’t typically see many home sales over $10 million in a year,” Mr. Alderfer said. “To have two back-to-back is significant. We may see some additional eye-popping purchases from Trump administration officials in the coming months.”
In addition, Secretary of State Rex Tillerson bought a Colonial-style home in Kalorama for $5.5 million in February. The neighborhood is also home to the Obamas and Ivanka Trump and Jared Kushner, although both of those families are believed to be renting for now.
Thanks to the affluent cabinet members’ big-ticket deals, Washington, D.C. had the fastest-growing luxury market among the more-than-1,000 cities across the country that Redfin tracks. The first quarter of the year also reversed a year-long downward trend in sales prices of luxury homes in the city.
“The luxury market has benefited from the new administration,” said Kimberly Casey, a luxury agent at Washington Fine Properties, “But improving job and economic condition and confidence in real estate market also contributed to the surge,” she added.
New upscale condos are being rolled out to meet the anticipated increase in demand. One of them, The Logan, at 1310 Q St., N.W. and within walking distance to the White House, will hit the market next week, according to Ms. Casey, who is handling sales with her fellow agent Daryl Judy. It offers six residences with prices ranging from $1.15 million to $2.845 million.
Nationwide, the average sales price of luxury homes rose 4.2% year-over-year to $1.65 million in the first quarter. Compared with the last quarter of 2016, the average price increased 2.4%, according to Redfin.
|Luxury Winners in Q1/2017|
|City||Average price||Y-O-Y change|
|Washington, D.C.||$2.71 million||32.6%|
|St. Petersburg, FL||$1.23 million||28.5%|
|Portland, OR||$1.34 million||23.5%|
|Paradise, NV||$1.15 million||22.4%|
|West Palm Beach||$1.56 million||21.4%|
|San Francisco, CA||$5.29 million||19.9%|
|Austin, TX||$1.75 million||16.2%|
|Philadelphia, PA||$1.01 million||15.3%|
|Boston, MA||$3.54 million||14.1%|
|Seattle, WA||$1.96 million||13.1%|
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