The numbers are in for 2015 in McLean and Great Falls and the market is up almost 11% over 2014 in terms of number of sales. This is excellent news for the market area as it indicates an environment for the potential for price appreciation, provided demand remains strong relative to supply.
The best performing segment for these zip codes was the lower brackets, considered to be under $1.25 million. Not surprising the entry level home purchaser experienced the most significant increase of 23% in demand. Most analysts attribute this to the Millennial Generation now entering the market to purchase their first home. In this area because of cost of housing that is likely to be either condo or town home ownership.
The 22102 part of McLean that is located in Tysons Corner offers numerous condo options. The opening of the Silver Line metro in 2014 has increased Tysons attraction for this demographic that desires an urban lifestyle. The other options available in McLean and to a lesser extent in Great Falls for the under $750,000 price point are town homes and smaller, older single family homes.
The next price range up, between $750,000 and $1.25 m, experienced an increase in demand of almost 16% year over year. The first level move up home owner typically is what represents this market segment. Having more confidence that their lower priced home should sell quickly for a strong price, these owners are in a better position to make the move to a home in a higher bracket.
New home builders continue to represent a portion of this market segment by purchasing lots for new construction. As there is very little available land remaining for development in McLean and Great Falls, builders mostly rely on in-fill by tearing down an older existing home for the land value. When the builders compete for lots, there is less available for owners that would buy the home to live in. These scenarios can make it challenging for a first time home buyer to purchase, although it actually can be a healthy sign of recovery when new home construction is strong.
The upper bracket categories comprise all home sales over $1.25 m and represent the next levels of move-up home owners. The $2 – 3 million price range is the only one that experienced an increase, which was marginal. The other two brackets saw slight declines in number of sales year over year.
For many home sellers in McLean and Great Falls 2015 represented “best of times”. Good homes priced correctly for the current market sold quickly for strong prices. All signs are for 2016 to continue the trend with positive market conditions.
Karen Briscoe and Lizzy Conroy and their team are active and experienced Realtors® with Keller Williams in the Northern Virginia, suburban Maryland and Washington, DC market place. They would be delighted to assist whether for home buying or selling. Please contact via the means most convenient for you: www.HBCRealtyGroup.com, 703-734-0192, Homes@HBCRealtyGroup.com.