Mid-Atlantic luxury market remains more resilient than the overall market

The luxury housing market in the Mid-Atlantic continued to outperform the overall housing market in the second quarter of 2025, with stronger price growth and a faster market pace. Despite elevated mortgage rates and economic uncertainty, luxury buyers remained active, and demand for high-end homes outpaced supply in many local markets. While overall closed sales were down slightly from a year ago, buyer competition remained strong in markets where inventory was limited. During the second quarter, luxury homes sold faster than non-luxury properties on average, and many sellers continued to receive full asking price or above, which highlights the financial strength of luxury homebuyers. Luxury home prices are rising faster than overall home prices, underscoring the strong demand at the top end of the market. However, performance varied by region. In the Philadelphia metro area, where inventory was especially tight, the luxury threshold rose more quickly, while price growth was more modest in markets with more supply. While the luxury market is relatively strong, the luxury market in the Washington D.C. region is showing signs of weakening. The number of new listings surged in the second quarter and sales were down by more than they were in other markets. Like the overall housing market, the Federal workforce cuts are having an impact on the luxury market in the D.C. region.

READ MORE: Mid-Atlantic Luxury Housing Report 2025 Q2