Local real estate experts said a strong economy and a scarcity of space in the national capital region’s inner suburbs are fueling a luxury housing market in Maryland, Virginia and the District that is among the most robust in the country.
According to a report in Business Week, local jurisdictions ranked near thetop of a list of states with the most homes valued at more than $1 million. The report used data from the 2005 U.S. Census bureau and other real estate valuation sources.
The report found more than 7 percent of homes in the District were valued at more than $1 million. In Virginia and Maryland, these homes took up about 2 percent of all residences.
Although $1 million homes are still most common in Hawaii, California and Connecticut, Virginia saw a 470 percent jump in high-end homes since 2001. In fact, Great Falls, Va., now ranks as one of the nation’s 20 most expensive suburbs.
Northern Virginia Association of Realtors spokeswoman Jill Landsman said wealthy Old Dominion residents with high-paying jobs buy larger pieces of property and build larger houses to drive up the home’s value.
“People can spend more on the structure when they have more elbow room,” she said. “This might be the ‘McMansion’ trend, but it’s the sign of a good local economy.”
In Maryland, increases in the value of homes in suburbs like Bethesda and Chevy Chase has fueled the expansion of the luxury market, said Carol Maclure, branch manager of Long and Foster’s Bethesda Gateway office.
“People don’t want to commute an hour and a half,” she said. “There’s only so much land and product close in. It all has to do with balance; what used to be $650,000, $700,000 three years ago is now $1 million. Good schools, good health care, good transportation — it all comes at a cost.”
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