The numbers are in for 2018 and the news is good for Reston real estate. We experienced 1316 transactions in 2018, a 2% increase from 2017. That’s on top of a 3% increase from 2016 to 2017. So the market has had considerable improvement in the past two years. If we compare to the 2008 market just one decade ago, home sales totaled only 934. Certainly the economic downturn was in full swing in 2008 and the numbers at an all time low.
There are a number of economic factors that affected real estate in 2018. First, interest rates have bounced around and ended the year higher than the historic lows of the past several years. As interest rates rise, buyer’s purchasing power is affected and they can afford less. Second, in many price segments inventory levels are low relative to demand. In the lower price points buyers do not have many choices available and those priced at under $500,000 will sell quickly.
In analyzing the price segments (see chart), the $1M and over market had the biggest percent increase going from 18 sales in 2017 to 27 in 2018. Conversely, the under $500K market experienced the biggest decrease going from 855 sales in 2017 to 827 sales in 2018. That is a strong indication that sales prices increased overall in Reston.
North Reston 20194 had the biggest volume increase, from 297 to 334 sales, a 12% increase. Every market segment performed better in 20194, with homes under $500,000 experiencing the largest number of transactions at 173, a 17% increase from 2017.
South Reston zip code 20191 experienced a slight decline in total number of sales, from 599 to 574. However, the $750K-$999K market had a major increase at 35% up over 2017. One factor that may have contributed is the new construction luxury townhomes and condos at Sunrise Valley Dr.
20190, which includes in and around Reston Town Center, remained the same in total number of sales but also had the biggest increase in $1M and over market segment, going from 5 sales in 2017 to 12 in 2018. Yet another indication that sales prices have increased.
As we move into the new year of 2019, there are strong indications that homes priced well and in good condition will sell for solid prices. If demand in Reston continues to remain strong relative to supply, some market segments may continue to experience price appreciation.
Home Buyers in the area can still purchase with the confidence that buying in an up market cycle frequently proves advantageous over time. Now is the time to work with a professional agent to be in your new home in 2019!
Jenny McClintock with HBC Group at Keller Williams is an active and experienced Realtor in the Northern Virginia market place. Jenny and her team work with sellers, buyers, investors and builders in all price ranges and is delighted to be of service.www.HBCGroupKW.com, 703-731-2412, Jenny@HBCGroupKW.com