SANTA CLARA, Calif.,
May 23, 2019 /PRNewswire/
-- Being named an Amazon HQ2 winner has resulted in
dramatically different outcomes for the Arlington, Va. and Manhattan, N.Y. housing markets, according to
a recent realtor.com® analysis released today. Although
the initial announcement instantly fueled the housing markets in
both cities, Amazon's later decision to pull out of Queens, N.Y., has cooled the Manhattan market, while Arlington continues to remain hot.
Immediately following the November announcement, home sales in
both cities jumped 50 percent year-over-year, but their
similarities ended there. To date, Arlington has seen six-figure (17 percent)
median list price growth of $110,000
and a more than 40 percent drop in inventory, while Manhattan has had a comparatively meager price
increase of less than 3 percent growth of $40,000, and a 3 percent decrease in
inventory.
Another difference is the metros' geographical impact. News of
the Arlington headquarters
prompted a flurry of activity in the area closest to the new
headquarters, but the Queens
headquarters spurred growth across the bridge in Manhattan, likely due to anticipated high
salaries from Amazon.
"With a household name as big as Amazon moving into Arlington's backyard, we expected that home
prices were going to increase, but because the number of homes for
sale is not keeping up with demand, the price growth we've
witnessed so far in both the mid-market and luxury sector has been
dramatic," said Danielle Hale,
realtor.com®'s chief economist. "Meanwhile, Manhattan's housing market, which boomed in
November following the announcement, has cooled off after Amazon
decided to pull out of the city."
Amazon Effect Increases Home Prices
At the time of
Amazon's HQ2 announcement in November
2018, Arlington's median
home price was $640,000. The median
home price in the area has sky-rocketed since then, increasing by a
whopping $110,000 or 17.3 percent to
$750,000 in April. Comparatively,
over the same time frame, the national median list price has only
increased $17,000 or 5.5 percent.
Conversely, the typical Manhattan home list price was $1.65 million in November. Since the time of the
announcement and subsequent pulling out, Manhattan's median list price has increased a
pedestrian 2.4 percent to $1.69
million.
Sales Surge and Inventory Drops Following
Announcement
Even as prices are skyrocketing, Arlington's inventory reveals a market that's
unable to keep up with the overwhelming demand. According to
realtor.com®'s April inventory data, after sales surged,
the number of active listings was down 48.2 percent, to less than
400 listings -- a massive year-over-year drop in inventory.
Meanwhile in Manhattan, the
housing market responded similarly in the early stages, but changed
following Amazon's reversal. Initially, after the announcement in
November, home sales jumped 52.1 percent year-over-year -- a night
and day difference from the 0.7 percent increase Manhattan saw the previous month in October.
In February, Manhattan home sales
were up 11 percent year-over-year, a healthy increase, but still
significantly lower than the area's initial response. In November,
Manhattan had 8,275 active
listings available for sale. That number dropped to 8,015 in
February. Even though more homes were scooped up in Manhattan than in Arlington, it resulted in a much less
noticeable, 3.1 percent decrease.
Buyers Expand Their Search Area to Find a Home
As the
number of listings in Arlington
dwindles, buyers are broadening their searches to surrounding
markets. The number of active listings in the Northern Virginia area fell 22.5 percent since
April 2018, and half of all homes
sold rapidly in under 34 days. Meanwhile, median list prices were
up 2.3 percent year-over-year, and reached $545,000 in April.
Amazon's Impact Extends Into Luxury Sector
While
Arlington's mid-market is
thriving, its luxury sector is faring even better. Luxury asking
prices in Arlington -- the top 5
percent of home prices -- reached $2.4
million in April, up 22.1 percent year-over-year. At the
same time, sales of million-dollar homes increased by 34.8 percent,
according to realtor.com®'s most recent sales data.
Similarly, luxury prices in the surrounding area of Northern Virginia reached $1.6 million, up 10.5 percent year-over-year,
while sales of million-dollar homes increased by 45.7 percent.
List
Prices
|
Arlington,
Va.
|
Manhattan,
N.Y.
|
Nov. Median List
Price
|
$640,000
|
$1,650,000
|
Apr. Median List
Price
|
$750,000
|
$1,690,000
|
Dollar
Difference
|
$110,000
|
$40,000
|
Percent
Difference
|
17.30%
|
2.40%
|
Inventory
|
Arlington,
Va.
|
Manhattan,
N.Y.
|
Nov.
Inventory
|
594
|
8,275
|
Apr.
Inventory
|
356
|
8,015
|
Unit
Difference
|
- 238
|
- 260
|
Percent
Difference
|
- 40.1%
|
- 3.1%
|
Sales
Prices
|
Arlington,
Va.
|
Manhattan,
N.Y.
|
Nov. Sales
Prices
|
$560,000
|
$1,160,000
|
Feb. Sales
Prices
|
$550,000
|
$960,000
|
Dollar
Difference
|
- 10,500
|
- $203,000
|
Percent
Difference
|
-1.9%
|
- 17.5%
|
Sales
Count
|
Arlington,
Va.
|
Manhattan,
N.Y.
|
Nov. Sales
Count
|
204
|
922
|
Feb. Sales
Count
|
181
|
729
|
Count
Difference
|
- 23
|
- 193
|
Percent
Difference
|
- 11.3%
|
- 20.9%
|
About realtor.com®
Realtor.com®, The Home
of Home Search®, offers the most MLS-listed for-sale
listings among national real estate portals, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. Through its
Opcity platform, realtor.com® uses data science and
machine learning to connect consumers with a real estate
professional based on their specific buying and selling needs.
Realtor.com®pioneered the world of digital real estate
20 years ago, and today is a trusted resource for home buyers,
sellers and dreamers by making all things home simple, efficient
and enjoyable. Realtor.com® is operated by News Corp
[Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a
perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
Contact: Cody Horvat
-- cody.horvat@move.com
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SOURCE realtor.com