Amazon’s new HQ2 complex is scheduled to open in Arlington this month. Media outlets nationwide and data-driven real estate companies like Redfin all agree that Arlington and Alexandria are the two most competitive housing markets in the country. Their findings, based on a number of competing home offers and supplemental data, represent additional evidence of the “Amazon Effect” that’s driving up the values of homes.
When market forces of this monolithic size are at play—with just the promise of a new corporate center coming to town—it has the unique power to create a new neighborhood that even the locals haven’t heard of. In this case, we are experiencing the birth of “National Landing.” However, only 70 Amazon employees are currently working from temporary office space in Crystal City. Yet, since last year, they have established a new restructuring of parts of Crystal City, Pentagon City, and Potomac Yards. Current predictions forecast that Amazon will draw 25,000 new residents to the area over the next 10 years. That represents a large uptick compared to the average of 52,000 jobs added to the region each year.
Homeowners in the DMV metro region and especially in Virginia really couldn’t ask for a more enticing seller’s market. Still, some current homeowners in the area seem to be holding on to their properties. The percentage of homes under contract in Northern Virginia has risen for the past three consecutive months. The total number of listings in July 2019 was approximately half of that of the previous year, which drives an increase in sale prices.
Other recent reports have found double-digit increases in median list prices for single-family homes in National Landing. Active inventories have declined 20 percent. This is the largest decline since June 2013, and the overall trend has been moving downward for seven months in a row.
“The close-in markets like Arlington and Alexandria are always the last to fall in a housing market decline and the first to recover,” said Christine Richardson, President of the NVAR. “They were always strong and robust, but now they’re on steroids.”
I couldn’t agree more. You can see evidence of this where the properties I’m selling are listed.