Trump Officials Boost D.C. Luxury Housing Market

May 01, 2017

President Trump has named Comptroller of the Currency Joseph Otting to serve as Acting Director of the Federal Housing Finance Agency (FHFA) after Mel Watt’s term concludes on Jan. 6

The Trump Administration seems to have made an impact on the luxury housing in the Washington, D.C., area. According to a new survey from Redfin, the average price for a luxury home in this market during the first quarter increased by 32.6 percent on a year-over-year basis.

Among the most notable luxury home purchases by Trump officials in the first quarter were the new residences by Secretary of Commerce Wilbur Ross and Treasury Secretary Steve Mnuchin, who both purchased homes over $10 million; Secretary of State Rex Tillerson reportedly bought a $5.5 million home. This is uncommon for the Washington, D.C., market, where there are only a few $10 million sales in any given year.

Outside of the Beltway, Redin reported that luxury home prices rose 4.2 percent year-over-year in the first quarter, reaching an average of $1.65 million. However, the bottom 95 percent of the market outperformed the luxury market for the ninth consecutive quarter: an average non-luxury home sold for $307,000, up seven percent from a year earlier.

“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.”

About the author

Phil Hall

Link copied

Published

May 01, 2017

Analysis and Data

Homeowners Insurance A Growing Concern in Florida and California

Majority of Fla. and Calif. survey respondents have been affected by insurance woes or live in an area that has, Redfin says

Insurance is at the top of mind for homebuyers and homeowners in Florida and California, which have become epicenters of the nationwide housing insurance crisis. Rising homeowners insurance premiums and changes in coverage are so commonplace now that nearly three-quarter...

Analysis and Data

California Home Sales Decline In March, Despite Increased Listings

The California Association of Realtors reports that the median home price rose 7.7% year-over-year.

After just last month announcing the resiliency of California home sales in February despite rising interest rates, figures released today by the California Association of Realtors (CAR) show sales volume in the state slipped in March as median home prices hit a seven-month ...