Brocker.Org: Trump’s super-rich cabinet is shaking up DC’s housing market

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Flickr/Tim
Evanson


Washington DC’s housing market is jolted whenever a new president
takes office and new members of the administration shop for
homes. 

But the impact was aggravated this time, with the wealthiest
president in US history appointing other super-rich people to
help run the country.

According to the real-estate company Redfin, President Donald
Trump’s administration contributed to a 32.6% year-over-year jump
in luxury home prices in the area, reversing the trend of falling
prices in that segment. The price jump outpaced other major
housing markets tracked by Redfin.

Treasury Secretary Steve Mnuchin, a former hedge fund manager,
bought a $12.6 million home in Massachusetts Heights. The
neighborhood is popular with the uber-rich and is a quick drive
to the White House ,according to the
Washington Post
. Mnuchin’s 16,000 square-foot home has
nine bedrooms and was sold on Valentine’s Day, according to the

Washington Business Journal

And then, Commerce Secretary Wilbur Ross, a former banker,
snagged a $10.75 million
mansion
not too far from Mnuchin’s home, according to Redfin.
The Beaux Arts estate includes seven bedrooms, a
library, and a theater, according to
Curbed

The average sale price of a luxury home in DC in the first
quarter was $2.7 million, according to Redfin. 

“We don’t typically see many home sales over $10 million in
a year,” said Michael Alderfer, a Redfin agent in DC, in a report
published on Thursday. “To have two back-to-back is significant.
We may see some additional eye-popping purchases from Trump
administration officials in the coming months.”

Rex Tillerson, the Secretary of State who was CEO of Exxon Mobil,
reportedly bought a $5.5 million home in Kalorama. President
Barack Obama and Ivanka Trump rent in the neighborhood. 

Even outside of DC, luxury-home buyers enjoy more options
compared to affordable starter homes where there is an inventory
crunch. The glut in luxury housing is encouraging landlords to
offer
greater concessions
and discounts to attract more buyers.
 

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