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Aerial view of Alexandria VA waterfront near Potomac River. Photo from iStock.com/krblokhin
Traditionally, the real estate markets in the City of Alexandria and Alexandria, Fairfax County, have a lot going for them thanks to ideal locations and a wide variety of high-quality-of-life factors. So, the cities’ selling trends don’t swing too low even when the other markets experience downturns. Higher interest rates may have slowed some of the selling action in 2023, but if the house was priced right, buyers offered owners more than reasonable offers.
Now that interest rates have decreased, homeowners will have a solid upper hand again during the prime selling season. If you’re interested in selling your home in Alexandria, VA, soon, keep an eye on these trends in addition to other traditional indicators of a strong seller’s market. They’re going to be around for a while.
1) High Home Values and the Housing Inventory Shortage 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 hampers buyers’ options. On the other hand, sellers continue to enjoy multiple offers, their choice of settlement dates, and a myriad of niceties.
The Federal Reserve indicated early in 2024 that they would not increase interest rates, which pleases sellers waiting to make their move and buyers who have sat on the sidelines for the last two years. Lower interest rates offer a little more affordability, but Alexandria home values have stayed the same or risen over the previous two years, shrinking purchasing power. The increased buyer competition will also encourage bidding wars and all-cash offers.
Photo from iStock.com/krblokhin
2) High Prices Mean Buyers Demand Move-In Ready Homes
Although sellers are sitting pretty in Alexandria, they must know that buyers are fatigued, especially after peak interest rates in 2022 and 2023 put many buyers on ice. They’ve been diligently watching and waiting for a home that is 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 the label “move-in ready.” Buyers may worry that they can mortgage a home, but after closing, they’ll be tapped financially and won't have the cash to carry out improvements. Military sellers might consider thoroughly preparing and staging to show buyers move-in-ready potential.
Are you headed to Alexandria? This newcomer’s guide has information to make the transition easier.
3) Surprising Reactions to Amazon and the Possibility of a New Sports Arena
Relocating the Wizards and Capitals to Potomac Yards
In late 2023, Virginia’s governor and the CEO of Monumental Sports and Entertainment announced a plan to relocate the professional sports franchises, the NBA’s Washington Wizards and NHL’s Washington Capitals, to a newly conceptualized arena in Potomac Yards, Alexandria.
The move isn’t a done deal—there’s plenty of resistance from Alexandria residents, citing traffic concerns, low wages for new arena employees, and overall discontentment with how the adjacent neighborhoods’ identities will change. As a military homeowner in the wide-ranging areas of Alexandria and Arlington, this is certainly a trend to watch as the deal or no deal unfolds.
Amazon's Market Fizzle
When the news of Amazon’s H2Q burst on the scene five years ago, the Alexandria housing market responded with a burst of activity. Home sellers waited with bated breath for unlimited and lucrative offers to come their way. Some homeowners took advantage of the initial interest, but others stayed and watched.
National Landing’s effect on Alexandria and Arlington remains strong with accompanying high sale prices thanks to the convenient location and low inventory of most housing, especially single family homes. However, Amazon’s effect was far less impactful than once thought. For example, according to Bright MLS’s Amazon market report, the median sales price was $650,000 in 2019. In 2022, it remained $650,000.
The area still attracts home buyers with financing ready to go, especially after Virginia Tech’s Innovation Campus opens nearby in 2024. Although Amazon put the brakes on its second development phase, the company still expects to have 25,000 new employees in place by 2030.
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Trail in Fairfax County, Virginia. Photo from iStock.com/krblokhin
4) The 2024 Election
Although Alexandria isn’t in the same zip code as Washington, DC, many government decisions directly affect Alexandria’s real estate market. It’s common for Alexandria’s market to slow somewhat starting in August and leading into November, thanks in part because of Congress’ recess.
But, the election and all of the uncertainty surrounding the campaigns and the actual election day could affect home buying trends while buyers wait and see what’s ahead. The typical trend post-election, however, is that buyers feel more confident and home buying numbers pick up over the winter months.
As you can see, all of these real estate trends benefit sellers who are considering selling soon. However, experienced real estate agents will give pause to an owner diving into the marketplace without first understanding the specific details of their neighborhood. Comparable homes sold rule the marketplace, and sellers should seek professional advice as to when to sell and for how much.
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