Alexandria Home Selling Trends
King Street in Alexandria, Virginia by Hermann Luyken
Growth continues in both the City of Alexandria and Alexandria, Fairfax County. In 2018, the Census Bureau estimated the Washington-Arlington-Alexandria region ranked 10th for population growth. Sellers will likely watch this number grow as Amazon HQ2’s effects solidify around the region.
It's impossible to discuss home selling trends in Alexandria without mentioning Amazon and how the company is changing the face of real estate in the area (How about the name “National Landing”?), but it's also worth mentioning that the West End of Alexandria is taking on a new personality and will look very different in a few short years. Development in retail and residential spaces are in the works and proposals are sitting in front of government officials now.
A healthy population growth is good news to home sellers not only in the immediate moment, but in the near future. If you’re interested in selling your home in Alexandria soon, keep an eye on these growth trends in addition to other indicators of a strong seller’s market. They’re going to be around for awhile.
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Mount Vernon and Del Ray Ave by Euan Fisk
1) Reactions to Amazon
The Northern Virginia Association of Realtors and the George Mason University Center for Regional Analysis noted that Alexandria’s very close neighbor, Arlington, forecasted a 5.1% increase in the median home price in Arlington County for the year 2019. They’ve already amended their prediction and put the number closer to 17.2%.
How does this affect sellers in Alexandria? The Del Ray and Potomac Yard neighborhoods were already sought after, but since they border Arlington, sale prices will be very much in line with the increased median home prices in Arlington.
The Fort Hunt Herald recently reported that secondary markets in Alexandria such as Belle Haven, Old Town, and the Richmond Highway corridor are also poised to see a surge in their median home price as demand trickles southward.
2) The Shortage of Housing Inventory Remains
Northern Virginia is known for the rapid real estate pace it maintains. Alexandria home sales stay true to this reputation, but lack of inventory continues to hamper buyer’s outlooks. Sellers, on the other hand, are enjoying multiple offers, their choice of settlement dates, and myriad of other niceties that owners in other markets do not enjoy.
Amazon has already brought an influx of investors gobbling up real estate offerings. Mix them with traditional buyers, and the whole scene remains beneficial to homeowners considering selling. Transitioning into a rental property is also an option, as owners sit and wait for the marketplace to peak, or make plans for a lucrative rental income.
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The George Washington Masonic National Memorial by Jim Larrison
3) Growth in Alexandria's West End
A move westward finds more space and more areas to revitalize. Currently, the Greenhill South area which is also known as Pickett Place, and specifically, Edsall Road, South Van Dorn Street, and Pickett Streets, is occupied predominantly by warehouses and storage buildings. Developers have their sights set on changing this to a mix of residential and retail outlets.
More developments in the works in the West End:
- A 200-room hotel near Edsall Road with neighboring condos and townhomes is also being considered by city officials.
- City Council approved a subdivision of land on Eisenhower Avenue, known as the Victory Center. The rezoning will accommodate commercial and residential mixed use.
4) High Prices Mean Home Buyers Demand Move-In Ready
Although sellers are sitting pretty in Alexandria, they must know that buyers are fatigued. They’ve been diligently watching and waiting for a home that is likely commute and school friendly with a sale price that they can be approved to purchase.
They’re ready to buy, but want the extras that come with label “move-in ready.” The outlook seems to be that they can mortgage a home that is in ideal condition, but after closing, they’ll be tapped financially and won't have the cash to carry out improvements. Sellers might consider a thorough staging process to get ahead and give buyers what they are willing to pay for.
Amazon HQ2 in Crystal City by Aaron Kuhn
5) Properties $500k and Up Surpass 50 Percent in Alexandria
The Washington Business Journal reported in February that 51% of Alexandria’s 41,468 residential units have an assessed value of $500,000 or more. As sellers, if you have a home valued above $500,000, you’ll be in good company.
Homeowners who have homes valued in the $250,000-$499,999 category have less competition to contend with. Homes in this range of value fell 20.5% in five years. Affordable housing with this price tag are all but gone. Rising assessments coupled with low inventory will keep buyers looking for affordability. Again, with new Amazon employees on the hunt, homes at these price points will be scarce.
Headed to Alexandria? This newcomer’s guide has information to make the transition easier.
Check out more stats from Alexandria’s assessment office:
- 281 homes are valued at $2 million or more.
- 3,182 homes are valued between $1 million to $1.999 million.
- The average single-family home is valued at $764,596.
- The average condo is valued at $329,216.
As you can see, all of these real estate trends are very beneficial to sellers (in general) who are considering a sale soon. However, any experienced real estate agent will give pause to an owner who is diving into the marketplace without first understanding the specific details of their neighborhood. Comparable homes sold rule the marketplace and sellers should seek pro advice as to when to sell, and for how much.