The luxury real estate market has been thriving lately in Washington DC. The Washington Metro area has been known for a variety of luxury properties from antique manors to penthouse lofts. The upscale properties in DC can have a modernistic, cutting-edge vibe and they can even boast a traditional design. If you look at the current state of the real estate market in Washington DC, you’ll come across most luxury properties available for sale right. There can be plenty of reasons for such a large number of luxury real estate on the market, and here we have listed the top 3 of them.
1. Luxury Real Estate Doesn’t Come In One Form Only
Yes, luxury real estate doesn’t just mean those giant single-family homes. It may also include the magnificent townhouses and condos. With such a variety available in luxury properties, the buyers always demand a luxury property and there is something for every budget and need out there. From 11-bedroom gothic mansions to brand-new homes, a luxury property in Washington DC is available in many different forms and caters to the needs of just about every group of buyers with differing needs. In addition, the demand for luxury properties is higher considering the fact you could easily find something in the mid-six figure range if you’re not ready to spend a whopping eight-figure sum.
2. Declining GDP In The US
Making available more luxury real estate on the market is one thing and luxury properties staying unsold is another. A major factor that has impacted the DC housing market in recent years is the GDP. Last year, the US economy started with an uptick and there was a 4.1% annual gain in the country’s GDP. The exports also saw an uptrend as they outpaced imports, and it appeared to be a good year for trade at that time.
However, during 2019, the momentum of the GDP was lost somewhere in the middle, and the second and third quarters only saw 2 percent gains. As a result, the consumers lost confidence, and investments in property started to drop. Even though the steps were taken by the Federal Reserve to give a boost to the economy, but still the outlooks are pretty grim.
3. The Changing Outlook of DC
Another reason why there is more luxury real estate for sale right now in Washington DC is the changing outlook of the area. During the past few years, DC has transformed quite a lot and now it’s not a ‘government town’ only. Washington DC is home to some big tech and law firms, and also the builders, developers, and financial firms.
The city’s lively dining and entertainment scene entices home buyers further, with empty-nesters coming back to DC after spending years in its suburbs and young families moving to the city due to educational opportunities. All these demands for more luxury real estate and most of the investors are taking the trend seriously by making luxury property in Washington, DC available for sale to the masses.
Want to explore some luxury real estate listings? The DC Team has many of them available right now. See if one of these fits your needs!
