August 2, 2019 –
There are always clients hoping for higher prices down the road. The past few months have shown that homeowners in the Northern Virginia area have been holding onto their properties for a variety of reasons. In May 2019, Loudoun, Fairfax, and Arlington counties saw a 3%, 2%, and 11% drop in units sold, respectively, when compared with just one year ago.
While the housing market inventories in Prince William, Fairfax, and Loudoun counties are down 24%, 18%, and 12%, respectively, Arlington County and Alexandria City inventories are down a whopping 51% and 59%! This can pose some more serious issues for the market, especially for buyers, because generally speaking when sales go down, prices go up. Overall, home prices across these five regions of Northern Virginia are up an average of $12,500 (2.2%), which means the future is definitely looking brighter for sellers. While housing markets have always grown and shrunk, outlets such as The Washington Post have been speculating on the possibility of massive price spikes in our area as giants like Google and Amazon come to rely on our existing infrastructure.
It can’t be denied that the looming approach of Amazon has sparked a great deal of consternation and curiosity about the possible impacts of the mega-corporation’s arrival on our local housing markets. While the new HQ2 will be located in Arlington County, the majority of their workforce is expected to live in Fairfax County. The market-dominating giant posted their first jobs for this new location back in April, so the hiring surge is already underway.
There will surely be many more flocking to our area, and these surges present clear challenges, but a November 2018 report from George Mason University made it clear that these impacts will be “dispersed and gradual.” This should ease overall strain on our shrunken inventory and make for a dynamic but steadily growing market as we continue on through 2019.