The McLean and Great Falls real estate market has experienced a robust number of sales in the 1st three quarters of 2016. The number of transactions is up 9% over 2015 same time frame. In addition, compared to the 2006 market, it is up almost 16%. This is excellent news for the market area as we enter into fourth quarter and the national election cycle. It indicates an environment for the potential for price appreciation in some segments, provided demand remains strong relative to supply.
The segment that performed the best in these zip codes was the lower brackets, considered to be anything under $1.25 million. Not surprising, most of the price points enjoyed greater sales year over year and higher than at 2006 levels as well. In the Tysons 22102 area of McLean the majority of the sales in this price point were condos. According to economists, this market niche is comprised of the Millennial Generation as first-time home buyers. Further the first level move up buyer now is confident that their lower priced home will sell quickly so that they can more easily make the leap into the next price bracket. Bridge and other available creative financing options are more readily available options.
The best performing price points continues to be the $1.25 to $2 m price range. Much of this is comprised of in-fill new home builders tearing down an older existing home for the land value. In many cases the lots are purchased off market which could skew the numbers for the lower price points. As there remains very little available land for development in McLean and Great Falls it is difficult to project how long this trend will last. As builders compete for lots, there is less available for end-user owners that would buy the homes to live in. Although this scenario can be a healthy sign of a rising market these dynamics can make it challenging for a first or second time home buyer to purchase in the community.
The price points above $2 m were generally flat for the first three quarters of 2016 over 2015 and similar to the 2006 levels. The number of buyers who are qualified to purchase homes in this segment is considerably smaller and remains fairly constant. It follows that even in a strong market year this would hold true.
The good news is that McLean and Great Falls home sellers continued in 2016 to experience “best of times” market conditions. The sales volume is up this year over 2015 and the last peak cycle for the area that culminated in 2006. The balance of 2016 indicators show that homes priced correctly for the market and in top condition should sell for strong prices.
Karen Briscoe and Lizzy Conroy and their team HBC Group at Keller Williams are active and experienced Realtors® 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.