DC Luxury Market Update – Q3 2025: Cash Buyers Take the Lead as High-End Demand Surges

The broader Washington, D.C. housing market may be slowing this fall, but the luxury segment continues to outperform. Despite federal uncertainty, layoffs, and a cooling overall market, affluent buyers remain active and continue to drive strength at the upper end.

Based on the latest Q3 2025 data from Bright MLS, new pending sales, cash transactions, and price growth in the luxury tier (homes above $1.725M in DC) are all outperforming the traditional market.

Luxury Buyers Are Still Buying — Especially With Cash

One of the biggest storylines this quarter is the role of cash buyers.

32.4% of DC luxury home purchases were all-cash in Q3 2025.
Across the Mid-Atlantic region, 33.7% of luxury homes closed with cash—significantly higher than the overall market.
In nearby second-home markets, such as the Del/Mar Coastal region and the Eastern Shore, 50–60% of luxury sales were cash.

Cash buyers are less sensitive to interest rates, move faster, and often command a stronger negotiating position. Their presence creates a level of stability that the broader DC market isn’t currently enjoying.

Demand Surges: Luxury Pendings Up 20%

While many buyers in the traditional market have stepped back, affluent purchasers have stepped forward:

DC luxury pending sales jumped 20% year-over-year, even while the overall DC market declined.
Across the Mid-Atlantic, luxury pendings rose 8.6%, showing broad strength.

This surge reflects a mix of:

Lifestyle-driven buyers upsizing
Relocation buyers seeking DC stability
Homeowners upgrading after large equity gains
Investors turning to real estate as stock markets remain volatile

Bar chart showing DC luxury pending sales up 20% versus a decline in the overall DC market. — DC luxury pending sales jumped 20% year-over-year, even while the overall DC market declined.

Tight Supply Keeps the Upper End Competitive

Despite overall inventory rising across the region, DC luxury inventory increased only 5.8% year-over-year—far slower than the nearly 30% rise in the general market.

High-quality homes in areas like Georgetown, Foxhall, Spring Valley, Wesley Heights, AU Park, and Kalorama are still moving quickly and at strong prices.

Prices Continue to Rise for DC Luxury Homes

Even as many buyers negotiate more aggressively in the traditional market, luxury prices are proving more resilient:

DC luxury home prices rose 3.3% year-over-year, outpacing the overall market’s 2.4% growth.
More than 30% of luxury properties sold above list price across the Mid-Atlantic.

The result: well-prepared, well-presented homes are still commanding premium outcomes.

Days on Market: A Slight Slowdown, but Still Fast

Luxury homes in the Mid-Atlantic sold in a median of 13 days, while DC luxury homes averaged 19 days. That modest increase is largely attributed to uncertainty around government shutdowns and budget reductions.

Still, selling $1.7M+ properties in under three weeks is exceptionally strong by any standard.

Where Are the Most Active Luxury ZIP Codes?

The Washington region dominated the quarter’s top ZIP codes for luxury sales. One area stands out in particular:

20007 (Georgetown / Burleith / Observatory Circle): 31 luxury sales — representing 29% of all sales in the ZIP this quarter.

If you’d like to see what’s currently available, explore the latest Georgetown homes for sale.

Stylized map showing 20007 as one of the most active DC luxury ZIP codes. — Georgetown’s 20007 ZIP code led the region with 31 luxury sales in Q3 2025.

Ultra-Luxury: DC’s Most Exceptional Properties

Luxury demand is strong across the board, but the ultra-luxury segment—homes in roughly the top 1% of the market—continues to show remarkable resilience.

Recent headline sales include a $20M estate on Chain Bridge Road NW, along with multiple eight-figure properties in nearby McLean and Annapolis. These transactions underscore the continued confidence of ultra-high-net-worth buyers in the DC metro.

To see what’s available right now at the very top of the market, visit: Top 10 Ultra-Luxury Homes for Sale in DC.

Looking Ahead to Q4 2025

The outlook for the rest of 2025 is mixed—but still favorable for well-positioned buyers and sellers:

Ultra-luxury ($5M+) should remain stable; these buyers are not dependent on mortgage rates.
The $1.5M–$2.5M band may soften slightly if shutdowns and budget cuts continue.
Cash will continue to dominate, shaping both pricing and negotiation dynamics.

What This Market Means for DC Buyers and Sellers

For Sellers

Strong demand plus limited supply creates a strategic window of opportunity.
Cash buyers bring clean offers and fewer contingencies.
Homes priced correctly and marketed at the true luxury level still sell quickly.
Douglas Elliman’s concierge-style services—staging, preparation, and strategic improvements—help maximize your sale price.

For Buyers

Expect competition for the best properties, especially in Georgetown, Upper Northwest, Bethesda, and McLean.
Cash is powerful, but strong financing packages can still win in multiple-offer situations.
Many high-end homes sell quietly or off-market—working with a connected luxury advisor matters.