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The Washington region, DC, enjoyed a “trump bump” on its luxury domestic market.
This so-called “Bosse Trump” began around November, when the national capital saw a major increase in demand for luxury houses Takes at least $ 5 million and continued in the new year, according to the general partner of the DC Nitrit Coombe agency.
“Usually, houses above $ 5 million in November, for example, a year ago, about eight sales there were,” she told Fox Business in an interview this week. “Between November, December, we had 20 sales above $ 5 million, a huge leap and many buyers in cash.”
Washington, DC – January 19: The American Capitol is presented at the Sunrise the day before the inauguration of the president elected Donald Trump on January 19, 2025 in Washington, DC. President elected American Donald Trump and the vice-president elected, Senator JD Vance (R-OH) (Joe Raedle / Getty Images / Getty Images)
“It’s a lot of sales,” noted Coombe, because the luxury market DC “does not have much inventory”.
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There are less than 30 single -family houses greater than $ 5 million – and even less in the ultra -luxury category – on the market in in the DC zoneAccording to the DC Managing Partner agency. She said that several luxury houses were on sale for a long time quickly took place under contract in November.
According to the DC agency, more than 60 luxury houses, generally considered to be those superior to the brand of $ 5 million, have sold on the DC market since the November elections.
“The market at the moment at DC is very, very strong, very hot, especially on the luxury market, for sure, because as you go up to the top of the price, you do not have as many buyers, But we actually have more than usual, much more than usual, “Coombe told Fox Business.
Trump administration was a great contributor to the recent increase in the luxury market in the DC region.
“The administration is a very rich administration, and they will all move to the region to work from here. And some have not really moved full time … So here you see a complete change where we are moving in The whole family, we are going to be here full-time and very rich people move in the region, so there is a lot of demand, “she said.
However, they are not the only ones to provide fuel.
“These are also large companies, lawyers, they also move. There are people who are more aligned with the new administration, so much of this happens,” added Coombe. “CEO of companies, their support staff, lawyers, many consultants for large companies.”
Washington’s horizon line, DC, including the US Capitol Building, Washington Monument, Lincoln Memorial and National Mall, is seen since Air, January 29, 2010. AFP Photo / Saul Loeb (Photo Credit should read Saul Loeb / AFP via Getty Images Images) (Saul Loeb / AFP via Getty Images / Getty Images)
Kalorama, Foxhall, Georgetown and Kent are part of certain districts of the national capital benefiting from the “bump Trump”.
Some recent sales include a $ 25 million transaction in Foxhall and an $ 10.5 million agreement in Georgetown, the Wall Street Journal said.
DC luxury market demand increased by 18% over a year, according to Comombe.
She also said that some parts of the wider DC, Maryland and Virginia region, known as DMV, have also “definitively” experienced a luxury demand in recent months, such as Bethesda, North districts Bethesda and McLean.
Aside from luxury houses, townhouses and condos were at high demand.
They were the most expensive houses sold in 2024, according to Redfin
The “situation of government employees” also makes Real estate market in the DC region More dynamic, according to Coombe.
Trump made the order to bring the workers back to the office at full time at the end of January. His administration has offered redemptions to many federal workers to leave their jobs or start doing work in person, Fox News Digital reported.
Detroit, Michigan – August 26: Republican presidential candidate, former American president Donald Trump at the National Guard Association of the 146th General Conference of the United States in Huntington Place Convention Center in Augu (Emily Elconin / Getty Images / Getty Images)
“This is an interesting change to look at, because when you look at government employees, it is not necessarily the upper level, it is not necessarily high luxury, it is the most average” , said Coombe. “There are many people who have taken the incentive that the government has offered to leave the government And when you see that, many of them do not stay in the region. “”
Meanwhile, others return to the region because they have to work in the office in full time, she said.
According to Coombe, it “depends” on politics “.
“Everyone looks at what will happen with government employees, which will happen with the international tax that we have, which will happen on the stock market and obviously the mortgage,” she posed. “I think the lenders are sitting and watching.”
The mortgage rate fixed at 30 years nationally was 6.87% on average the week of February 13, according to Freddie Mac. This marked a drop of 0.02 for percentage of points of the previous week.
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She said that house buyers in the DC region had used the current levels and that rates did not really affect the luxury market in DC in particular, noting that more than 60% of buyers of buyers This category since November paid “all species” or “heavy money.”
DC made 5 sales of ultra-luxury houses worth at least $ 10 million in 2024, according to a recent Compass report. These sales amounted to 67.85 million dollars combined.
In January, the houses on the County real estate market of DC and Montgomery sold for a median of $ 552,500, according to the Greater Capital Area Association of Realtors.
