The massive spike in D.C.’s luxury homes market in the first quarter of 2017 was an upturn from a year-long trend of declining prices in luxury homes
The New York Times pegged President Trump’s cabinet as the wealthiest in US history, and some of the members’ recent luxury-home purchases have actually helped drive up housing costs in the nation’s capital.
A recent Redfin report found that luxury home purchases by Trump appointees contributed to a 32.6% spike in Washington, D.C.’s luxury market in the first quarter of 2017 alone.
Commerce Secretary Wilbur Ross purchased a $10 million home in January, while Treasury Secretary Steve Mnuchin bought a $12 million property in February. Both purchases were in the Massachusetts Avenue Heights area.
Secretary of State Rex Tillerson also reportedly purchased a $5.5 million home in the Kalorama area.
“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,” said Michael Alderfer, a Redfin agent in Washington, D.C. “We don’t typically see many home sales over $10 million in a year. To have two back-to-back is significant. We may see some additional eye-popping purchases from Trump administration officials in the coming months.”
The first quarter of 2017 did not disappoint, as luxury home prices rose 4.2% over Q1 of 2016, to an average of $1.65 million.
“After tepid price growth in the luxury segment throughout 2016, the luxury market rallied at the start of the year, following big gains in the stock market,” said Redfin Chief Economist Nela Richardson. “Luxury buyers may be acting on their optimism about the economic outlook thanks to President Trump’s promises of large tax cuts for wealthy individuals and corporations.”
