The luxury market in Montgomery County and the DMV proved resilient throughout 2025. In spite of the national economic headwinds of inflation and the local headwinds that included an extended government shutdown and layoffs, we saw a brisk market for luxury properties. Inventory was constrained by the limited supply (which impacted all price points) but serious luxury buyers were able to find homes on and off the market in the Metro Washington, DC area that aligned with their aspirations.
Turn-key homes in demand…with a few caveats
Trends that we saw in the luxury market that emerged initially during the pandemic have turned less “trend” and more standard expectations. Maxed-out outdoor entertainment amenities, multiple work-from-home spaces and heated garages with lifts and customized build outs are included. Swimming pools have morphed into “must have” features, along with tennis courts that also work for pickleball and a sport court, and home theaters that are for media AND gaming centers. All of these features create distinction between homes on the market and all elevate value.
The luxury buyer is looking for a turn-key, quality retreat in every sense of the word. We saw time and again that sellers who delivered on these expectations netted a quicker, easier sale.
What lies ahead in 2026 in the luxury home market?
Looking ahead, I expect to see prices holding steady with modest gains in this niche in 2026. The “haves” still have, and the influx of capital and favorable jumbo loan products will likely continue to support a healthy luxury market in the Metro DC area next year.