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.