P
hoto: Tasos Katopodis/Getty Images
Despite the uncertainty surrounding the presidential election, Washington D.C.'s luxury real estate market is poised to bounce back in January. According to Michael Rankin, principal and managing partner of Sotheby's International Realty in D.C., "people don't want to spend millions if they're unsure about their future." However, he notes that the high-end buyers who are coming into the market are typically multimillionaires and billionaires.
During Donald Trump's previous presidency, there was a surge in high-priced house sales. Commerce secretary Wilbur Ross paid $12 million for a Beaux-Arts mansion in Massachusetts Heights, while Treasury secretary Steve Mnuchin dropped $12.58 million on a 16,000-square-foot house in the same neighborhood. Brokers are expecting similar activity this time around, although they can't discuss it openly due to non-disclosure agreements.
One agent revealed that at least two high-profile administration figures have been looking for properties since the election, but couldn't disclose any further information. If past trends hold true, these buyers may be eyeing neighborhoods like Kalorama or Massachusetts Heights, where Kellyanne Conway owns a Mediterranean-style mansion and 15% of homes are embassies.
However, not all Trump administration members are expected to invest in local real estate. Elon Musk, one of the wealthiest members of the new crew, "isn't a big house person," according to Rankin. Eva Davis, executive vice-president at Compass, notes that there's always a rush of transactions when administrations change, but this year's pre-election flurry was unusual due to the Conservative Partnership Institute's buying spree.
Some brokers are concerned about Trump's plans to slash the federal workforce and revoke home rule, which could impact local real estate prices. "People are saying, 'I don't want to be here for that,'" Davis notes. Others worry that the administration may not spend as much time in D.C. as previous administrations, with some Cabinet members preferring to hold court from Palm Beach or New York.
