In the year since Amazon picked Northern Virginia for its new headquarters, average and median home prices are rising and properties are selling more quickly.
That’s according to the Northern Virginia Association of Realtors, which released its October sales report on Wednesday, Nov. 13 – the one-year anniversary of the Amazon announcement. NVAR covers Fairfax and Arlington counties, the cities of Alexandria, Falls Church, Fairfax and the towns of Vienna, Herndon and Clifton.
“The average number of days on the market for listings in our [area] was down about 27% compared to last October,” NVAR President Christine Richardson said in a news release. “And in Alexandria, properties stayed on the market for an average of just 10 days – a 68% drop in the course of one year.”
Average and median home prices were up by about 7% and 12%, respectively, according to NVAR CEO Ryan Conrad, but low market inventory remains “a challenge.”
But the inventory has been mostly good news for sellers because properties are getting showings and “multiple” offers, said Gary Lange, an NVAR board member and realtor with Weichert, Realtors® in Vienna. But price point is a factor.
“Anything under $800,000 moves quickly depending on how close you are to D.C., while properties $1.3 million and above are sitting on the market longer and struggle to get traffic and offers. Competition in that price point is fierce,” Lange said.
Buyers conditioned by home-improvement shows are still choosy about home interiors, Lange said.
“Buyers continue to look for ‘HGTV homes’ first, and sellers whose homes aren’t move-in ready have to be realistic with their pricing,” Lange said. “As we move into the slower months it will be imperative for sellers to temper their expectations on pricing.”
A total of 1,719 homes sold in Northern Virginia in October, an 9.21% increase from October 2018 home sales, which numbered 1,574.
Active listings were down about 33% from the prior year, with 2,556 active listings in October 2019, compared to the 3,767 homes on the market in October 2018.
The average sales price rose 6.58% compared with last October, to $607,230. The October 2018 average price was $569,748.
The median price for homes sold this October was $549,900, an increase of about 12% compared to the median price of $490,000 from October 2018.
Amazon has 200 employees in temporary office space in National Landing with 200 additional open positions advertised for hiring, Richardson said in the release.
Construction on two 22-story towers for the Amazon headquarters will begin next year and will provide office spaces for 12,000 employees. Amazon expects to hire 25,000 to 40,000 employees for HQ2 over the next 10 years.