Washington, DC’s luxury real estate market had a January and February this year that were, by most accounts, flat. Then May happened. Daryl Judy, Associate Broker with Washington Fine Properties and one of the most active luxury agents in the DC market, says, 'I can’t keep up right now. All of a sudden, people are like, okay, I’m going to sell my investment, we’re going to make the move now. Something has shifted.'
That shift is not random. It follows a pattern Judy has watched play out repeatedly at the top end of the market, a dynamic he calls the cascade effect. Activity at the top of DC’s luxury market does not happen in a steady trickle. It clusters. One significant sale creates the conditions for the next one, and the next one after that. The trigger is not interest rates or stock market movements; buyers who can afford $6 million properties are largely insulated from both. It is about social permission. Buyers at this level want to know that other serious buyers are moving. They want confirmation that the neighborhood, the price tier, and the type of property they are considering are ones that people like them are actively choosing.
Judy draws a parallel to investment behavior: buyers want to know who else has committed before they commit themselves. 'People don’t want to invest in a company until they know someone else invested,' he says. 'Who else bought here? There’s security in knowing other people are willing to spend that kind of money.' When that confidence clicks into place, the cascade begins.
Judy describes two recent examples from Georgetown, both involving buyers he was working with directly, that show how quickly the dynamic can move. In the first case, a buyer had been considering a property that had been on the market for over two years. She liked it but had not committed. When her agent told her another party was coming back for a second showing, she moved, but within 24 hours, the competing buyer had already placed an accepted offer. She had waited one day too long. That same buyer then turned to a second property, the one that had been sitting for two years. The day she placed her offer, a second offer came in. Two years of inactivity, then two offers in one day.
In the second case, Judy was working with a buyer on a property at 1671 31st Street NW, which ultimately sold for $6,525,000. The buyer had also viewed 3307 N Street, the home Jackie and John Kennedy owned when he ran for president. She appreciated it but did not connect with it. When word came of competing interest on the 31st Street property, that information pushed her to act. The house sold. Movement drives more movement.
The pattern is backed by market numbers. Across the DC, Maryland, and Virginia metro area, sales above $5 million rose from 45 transactions in 2023-2024 to 78 in 2024-2025 – a 73 percent increase. At the higher end, sales above $8 million grew from three to five over the same period. In Georgetown specifically, only nine properties have sold above $6 million in the past 365 days out of 134 total sales. Those nine transactions are not independent events; they feed each other. 'Once something gets going and people start realizing there’s been a big sale in this neighborhood, the cascade happens,' Judy says. 'January was flat. February was flat. May was straight out.'
For buyers, the practical implication is straightforward. A property that has sat for two years can go under contract with competing offers in a single day. Waiting for the perfect moment means that someone else’s decision to move can instantly change the options available to you. Judy advises buyers to get clear on what they want before that pressure arrives. Knowing your priorities in advance and being prepared to act when a property meets them is the difference between buying and watching someone else buy. For sellers, the cascade effect means that the pricing strategy at the outset matters more than it might appear. Overpricing a property tends to leave it sitting while the market moves around it. A well-priced home in an active market can generate its own momentum. For more on what is moving in Washington, DC, and the broader DMV luxury market right now, visit Washington Fine Properties.
