In January, Washington Commanders owner Joshua Harris and his wife, Marjorie, paid the most ever for a house in Washington, D.C. — $28 million for a 30,000-square-foot Georgetown property overlooking the Potomac. In late March, Old Town Alexandria recorded its highest-ever sale at $7.1 million for a seven-bedroom, eight-bathroom residence with 13 fireplaces and a conservatory.
While record-high prices continue to be set and Washington-area luxury home sales outperform the overall real estate market, there are signs that high-end house sales are weakening. Sales of luxury homes dipped 4 percent in the final three months of 2025 compared with the same period a year earlier, with nearly 20% fewer active listings, according to Bright MLS. The listings service defines luxury homes as those in the top 5% of prices — about $1.8 million and above in the D.C. region.
That cooling comes after what many agents describe as an extraordinary run. “2025 was the best year on record for luxury real estate in the capital region in terms of units sold,” said Robert Hryniewicki with HRLS Partners at TTR Sotheby’s International Realty, pointing to record numbers of sales in the $2 million to $5 million range, which is where he sells the most.
For Compass Realty agent Hans Wydler, the Trump administration ushered in a boom in luxury homebuying. “I’ve been in D.C. for 40 years. It was never a flashy town, but now, it’s got a little bit more flash to it. The new administration brought in a whole group of people that, by design, is very, very different from the legacy inhabitants of D.C. on both sides of the aisle,” he said.
But a host of issues followed, from tariffs to government shutdowns, which slowed the momentum. The infamous snowcrete this winter and frigid temperatures led some luxury sellers to hold off on listing their houses for sale, said Wydler, who sells homes with his brother Steve in team called Wydler Brothers.
While sales above $3 million were down roughly 20 percent in the first two months of 2026 from the same period last year, Hryniewicki says he expects them to pick up now that the weather has warmed.
Another issue is low inventory. Fewer luxury homes are coming onto the market, according to Marilyn Emery of RLAH @properties and treasurer of the Greater Capital Area Association of Realtors. In February, listings in the $1 million to $2.5 million range were down more than 20 percent compared with a year earlier, while higher price brackets saw declines closer to 30 percent, she said. In D.C.’s sought-after Cleveland Park, 60 homes sold in 2019, but only 29 last year, Hryniewicki said.
Unlike sellers of lower-priced houses, those with high-end homes have the luxury to wait to both list their houses and buy new ones, less concerned about outgrowing a small home and job layoffs.
“If you’ve got somebody who wants a $10 million home and they lose their job, they’ll find another job — or they have a cushion,” Emery said. “They don’t have to put their house on the market.”
Recent stock market gyrations and the war with Iran are also making luxury homeowners more content to hold on to their houses.
For buyers with flexibility that environment can reward patience. Coleen Brighton spent months searching for the right home before purchasing a $5.2 million, six-bedroom house in Georgetown in early 2026 — while holding on to a similarly valued one in Austin. Her husband’s work ties to both Washington and Texas allow the couple to delay selling their existing home, a flexibility that is common among affluent buyers.
Brighton initially considered Logan Circle and Dupont Circle but quickly focused on Georgetown for its walkability and sense of community. After touring multiple properties, she found one above both the price and size she initially wanted — but it checked all the right boxes, including having plenty of space for visiting adult children and nieces and nephews.
“I walked in and I’m like, ‘This is it,’” she said.
Another distinguishing factor is how these purchases are financed. About 35 percent of luxury home purchases are all-cash deals, according to Bright MLS Chief Economist Lisa Sturtevant.
“We think of them bringing a suitcase full of money, but they’re often accessing capital from places outside the mortgage market,” such as borrowing against investment portfolios or securing favorable private loans, she said.
So what are luxury buyers looking for?
Lifestyle continues to drive demand, particularly for second homes and properties designed for multigenerational living. Waterfront homes in areas such as Annapolis and the Delaware beaches remain especially desirable, said TTR Sotheby’s International agent Brad Kappel, likening them to “a blue-chip stock” that offers both enjoyment and long-term value.
“Primarily who’s buying these homes are older people who say, ‘Now’s the time to get that waterfront home. We want the grandkids to visit.’ Or there are people who have worked hard all week long in Bethesda or Chevy Chase, and they say, ‘We really want to go somewhere coastal.’ And that’s what’s driving our market.”
He notes that waterfront properties are a scare commodity because there’s very little land left to develop, leading to continued high prices and fewer homes on the market. His recent home sales include a five-bedroom, eight-bathroom house on eight acres fronting to a creek and docks for $10.25 million and a 34,000-square-foot historic house on the Severn River for $15.5 million.
Convenience and entertainment potential are also big draws. That has prompted builders to deliver fully outfitted homes, with features that were once considered upgrades, such as pools, large kitchens with secondary prep areas, expansive outdoor entertaining spaces and even golf simulators. Post-pandemic preferences for indoor-outdoor living and large gathering spaces have also persisted, agents said.
Those amenities were optional before covid. But now, “the spec builders are building everything, soup to nuts, with all the bells and whistles. We like to say the last luxury in the DMV is time, and the buyers are paying a premium to have all the work done for them,” said Steve Wydler.
Location is also a big factor. Desirable neighborhoods from Spring Valley and Cleveland Park in D.C. to Lyon Village and Langley Farm in Virginia and Chevy Chase Village in Maryland command premium prices and multiple offers. The three priciest Zip codes last year in the area were 22101 in McLean with a median sales price of $1.65 million, 22066 in Great Falls at $1.59 million and 20816 in Bethesda at $1.44 million, according to the ICE Home Price Index.
Hryniewicki noted that a home listed for $3.45 million on two-thirds of an acre in the Kenwood neighborhood of Bethesda famed for the clouds of cherry blossoms that bloom each spring had five offers within 24 hours. And that was when snow still covered the ground.
The region’s underlying wealth has helped sustain demand, particularly at the very top of the market. “In some ways, the taboo of spending too much on a house has been broken,” Wydler said. “For the right houses, people are spending big dollars.”
However, rising oil prices, persistent inflation and the possibility of higher interest rates could weigh on buyer sentiment later in 2026, Wydler said. Those factors could put the damper on discretionary purchases such as second homes.
“It’s still a healthy market,” he said. “But people are watching more closely.”
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