Best of luck to you if you are hoping to purchase your first home within North Virginia. Thanks to Amazon HQ, Alexandria and Arlington will soon become the most expensive places to own a home in the U.S; this is according to a report published by Redfin.
Based on these findings, the offers made on homes and the available data, it is clear that the Amazon effect is in high gear. Real estate values are currently going up.
Arlington, the area where Amazon HQ will be built, as well as the Alexandria neighborhood have scored more than 96 percent well above areas like Washington, Tacoma, California, and Oakland. In the surrounding areas where HQ2 will be put up, homes are already selling at higher rates compared to areas like D.C metro.
In fact, houses that were on the market around July sold out in a record 11 and 14 days in Arlington and Alexandria respectively.
Currently, homeowners in Alexandria and Arlington are holding onto the property; the number of house listing last July was 50 percent lower than what was recorded last year. This has caused prices to go up. About 46 and 36 percent of all homes in Arlington, as well as Alexandria, were bought for far more than their cited prices. This was much better compared to 27 percent and 24 percent a year before.
Meanwhile, the rate around D.C metro area was recorded as 32 percentage points as of July 2019. Other than the competing offers, Redfin also focused on waived exigence. Sale to list ratios, as well as the number of days a property would last on the market. This would help in calculating compete score.
According to Daryl, Redfin’s key economist, the price of homes in northern Virginia will continue to rise. As a result, this area is now listed as National Landing.
He says that property owner will now start quoting five to ten-times asking price because they believe the prices will go up by hundreds of thousands.
Although HQ2 might take a little longer to achieve the size of HQ1, property owners have already started assuming that demand for homes will continue to grow. Amazon also expects to employ close to 25000 employees to work in its new HQ.