State of the D.C. area real estate market: Where did all the listings go?

We’re now firmly in the spring market, and there’s one question that has emerged that’s pretty hard to avoid: What happened to listing inventory in the City of Alexandria and in Arlington County?

At the end of March, most of the metro area had roughly the same number of listings on the market as this time last year.  But in Arlington County, inventory is down 40%, and in the City of Alexandria, there were exactly half as many homes on the market.

Half.

Where did the listings go?  Contract activity is a little higher than last year in both of these areas. But it isn’t contract activity that accounts for the big drop in inventory.

There has been a significant reduction in the number of new listings coming on the market; it simply isn’t being replaced at the same levels we have historically seen.  The Amazon HQ2 announcement may have something (or a lot!) to do with that, as some would-be sellers may be holding off with the expectation of higher prices down the road.

The lack of inventory has pushed absorption rates into the “extreme sellers’ market” for most price ranges in Arlington and Alexandria.   Although prices are higher than before the HQ2 news, that’s generally true throughout the region. We haven’t yet seen the big spike in prices that ordinarily accompanies very low supply. We’ll be keeping a close eye on this in the months ahead.

Every market is different and if you’d like to know more about how things are in your neighborhood, we encourage you to call your favorite McEnearney Associate and we’ll give you an in-depth analysis.

David Howell, “State of the D.C. area real estate market: Where did all the listings go?”

Amazon’s impact on Arlington and Alexandria continued in December

McEnearney Associates’ EVP and CIO David Howell

December brought some truly incredible absorption rates in Arlington and Alexandria in the aftermath of Amazon’s HQ2 announcement, while the rest of the region continued to see more typical performance.

Compared to the previous December, contract activity in Alexandria was up 13% in December 2018 and was up 20% in Arlington.  The Amazon announcement created a perfect storm – it fueled demand precisely at a time when inventory is seasonally low. In December 2017, inventory was about 40% lower than it was in September 2017 in both Alexandria and Arlington.  As expected, inventory was already headed down before the Amazon announcement, so when contract activity increased in the last six weeks of the year in Arlington and Alexandria there was already less inventory to fight over.  And since we were then in a time of year where relatively few listings come on the market, buyers were soaking up whatever was there.

Continue reading “Amazon’s impact on Arlington and Alexandria continued in December”

Amazon HQ2 announcement affects D.C. area contract activity in November 2018

Arlington and Alexandria’s real estate certainly got a boost in the immediate aftermath of Amazon’s announcement that they are bringing 25,000 new jobs to Northern Virginia over the next decade. A couple of weeks ago we talked about the Impact of Amazon’s HQ2 move to Northern Virginia and what to expect in the years to come, but today let’s focus on the immediate changes that we’ve noticed in the month of November.

Continue reading “Amazon HQ2 announcement affects D.C. area contract activity in November 2018”