Amazon's decision to build its second headquarters in Virginia is already raising house prices in the area by nearly 20%.
The average home sale price in Arlington increased annually by 17.7% to $ 655,000 in the six months since Amazon announced its plans in November, according to a report from Redfin.
The typical home that was sold went under contract in just six days in April, compared to 10 days last year.
The Crystal City district in Arlington, directly across the street from Washington, D.C., is the intended location of Amazon's second headquarters, where about 25,000 people will eventually work.
Amazon's decision to build its second headquarters in Virginia is already raising house prices in the area by as much as $ 70,000. Photos & # 39; s is one of the first buildings that Amazon will take over in Crystal City
Redfin agent Mara Gemond said that Amazon's announcement had a noticeable effect on the real estate market within a few weeks.
She said that almost every home buyer mentioned Amazon as a factor in their house search. She said: & # 39; I can't remember the last time I had a customer bid without competition.
& # 39; In the past few months, most of my home buyers' customers have mentioned one of two scenarios, and speculation about Amazon's impact is part of the thinking process for both.
& # 39; They want to buy now because they are afraid that they will be priced out of the market soon, or to secure an investment property for rental and future resale. & # 39;
The cities of northern Virginia, Alexandria and Arlington, are now the two most competitive housing markets in the country, according to the report.
Gemond said that almost all buyers who are excluded are current residents of the area. This is despite the fact that Amazon has not yet hired the first 400 employees for HQ2.
The locals are breaking down properties in the hope that prices will rise even higher when the Amazon headquarters is completed and active.
The cities of Alexandria and Arlington in northern Virginia are now the two most competitive housing markets in the country. The picture shows a 3-bedroom, 1.5-bathroom house in Alexandria on the market for $ 625,000
This image shows an apartment with 2 bedrooms and 2.5 bathrooms near Amazon's HQ2 in Arlington. It was one of the most viewed offers on Redfin.com on 12 May. It is on the market for $ 879,900
On average, I added: & # 39; I had an apartment across HQ2's "ground zero" last fall, and it had been on the market for 90 days without any interest. (The owner) was about to remove the listing from the market.
After the news leaked on November 11 that Amazon chose the area, & suddenly it sold for $ 70,000 more than we asked and one day. & # 39;
Washington D.C. subway station, which includes several other parts of Virginia Arlington, Alexandria and Falls Church, was the third fastest big market in April, with the typical house under contract in 10 days.
The only places where houses were sold faster were Amazon & # 39; s hometown of Seattle and nearby Tacoma, Washington, where the typical house that sold in each area in April went under contract within nine days.
Amazon, the online retail giant, has chosen to establish its second North American headquarters in Crystal City. Shown is a view of Crystal City on 18th Street South
An image shows that a 2 bedroom and 1 bathroom apartment is also only a short drive to Amazon HQ2, which is listed for $ 585,000 in Washington D.C.
Marcia Burgos Stone said that the increased interest of home buyers comes mainly from people who already live in the area, whether they are investors or people who want to buy before prices rise further.
Redfin chief economist Daryl Fairweather added: “The value of a home is determined not only by who is interested in living in the house today, but also who will be interested in living in the future.
& # 39; That is why we are already seeing that house prices are being offered near Amazon HQ2 long before the campus is fully staffed.
& # 39; As Amazon employees move to the area, more jobs are likely to be created – for lawyers, accountants, and other professionals and companies who want to add HQ2 employees to their customer base.
& # 39; The area's economy is ready to grow for the foreseeable future, so the price increase of the homes we see today is just the beginning. & # 39;
Redfin agent Mara Gemond, (photo), said that Amazon's announcement had a noticeable effect on the real estate market within a few weeks.
Christine Richardson, a broker and president of the Northern Virginia Association of Realtors, said that new home buyers may find it difficult to bid when investors can pay in cash.
She said The Washington Post: & # 39; These (buyers) are speculators or people who just want to live in Arlington and Alexandria.
& # 39; The announcement from Amazon put them in a downward spiral. They probably rent and are planning to buy in 2021 or so, but they said, "I have to speed this up." Then you have the opposite (instinct) with the sellers. & # 39;
In February, Amazon abruptly dropped plans for a new headquarters in New York that would have brought 25,000 jobs to the city, reversing the course after politicians and activists objected to the nearly $ 3 billion in rewards promised to what is already one of & # 39; the world's richest, most powerful companies.
The move was a serious blow to Governor Andrew Cuomo and Mayor Bill de Blasio, who had lobbied intensively to land the project.
New York had fought over 200 other metropolitan areas on the continent that practically stumbled over each other to stimulate Amazon in a bidding war that the company set up.
Amazon announced in November that it had chosen the Long Island City Department of Queens for one of the two new headquarters, with the other in Arlington, Virginia. Both would get 25,000 jobs. A third site in Nashville, Tennessee, would receive 5,000.
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