In the eight months since northern Virginia was selected as a destination for retail juggernaut Amazon’s second headquarters, the housing market in Arlington has been on a rollercoaster trajectory. Now, a new report from Bright MLS aims to trace the effects Amazon has presumably had on the market in “National Landing”.
As anticipation created a frenzy leading up to the November HQ2 announcement, the number of closed sales spiked in National Landing, a designation for the Amazon campus which encompasses parts of Crystal City, Pentagon City and Potomac Yard. Pending sales in the 22202 zip code, which Bright MLS uses to identify National Landing, were 121 percent higher the month of the announcement than in November 2017.
When the HQ2 news broke, however, sales activity dropped, with new pending sales flat in December and dipping by 63 and 50 percent year-over-year in January and February. The number of new listings hitting the market fell by 85 percent from October to November, and was down by 70 percent year-over-year in June.
“This severe lack of inventory in 22202 could be the result of homeowners waiting for their property values to peak as the official opening of HQ2 grows closer,” Chris Finnegan, Vice President of Marketing and Communications for Bright MLS, said in the report.
Those who are listing their homes are pricing them ambitiously. Single-family homes that hit the market in June are being listed at a median price of $1.6 million, a whopping 99 percent premium compared to June 2018. Last December, the median list price was $1,369,900 — 75.5 percent higher than it was the month prior when Amazon made its announcement.