All evidence is pointing towards Crystal City following Amazon’s announcement that they are in “late-stage discussions” with two cities. This information is not news to anyone — we have been hearing it for months — but with the final announcement right around the corner, let’s talk about what this means…and why I decided to bite the bullet and become a homeowner.
One thing’s for sure: if HQ2 comes here, we will be seeing a huge influx of people to our area over the next few years. An influx of people who need places to live…bring on the Amazon effect!
For Seattle, it was a perfect storm. Interest rates were historically low, it was the very beginning of the housing recovery, and in six years their real estate prices went up 100 percent. We are in a slightly different climate here in the D.C. metro area. Interest rates, while not very high, are on the climb, and our housing prices are already quite high compared to the national average. On top of that, we are about twice the size of Seattle, meaning the impact on supply and demand will be a fraction.
With more demand will come a lot of development. Be prepared for a huge transformation of the Crystal City/Pentagon City/Potomac Yard corridor into a more inviting, vibrant, and walkable community along Route 1, with more retail, better office space, and more housing. We are expecting this development to continue right on down into Alexandria. Thoughts on the next few years:
I have been living at home for the last two and a half years, saving as much money as possible and have been considering buying for a while. When it started to become clear that Northern Virginia was a top contender for Amazon, I thought why wait and take the risk of being out bid and getting priced out of the market. As a first-time home buyer, I had a very tight budget, a budget I knew a lot of millennial Amazon employees would fall into as well. Rather than waiting to see how everything is going to play out, I made the decision to jump into the housing market, and I think I am going to be very happy I did!
In conclusion, if Amazon comes, there will be quite a shakeup. The high demand in housing will spur new development and a rise in prices. While we are not expecting to see the same price explosion as Seattle, we will see stable and sustainable growth, with prices rising slowly and steadily.
The Patterson Group is one of the most experienced and trusted real estate teams in the area, serving Alexandria, VA for over thirty years. We offer professional, hardworking, detailed and friendly service and a large network of contacts and resources accrued over our many years in Alexandria real estate. Comprised of seven Alexandria locals, six of whom are licensed realtors and three of whom are accredited staging professionals, The Patterson Group is passionate and knowledgeable about Alexandria, VA and here for all of your Northern VA real estate needs. Allow us to help you find your home here and discover all that the Alexandria lifestyle has to offer.
400 South Washington Street
Alexandria, VA 22314