The real estate market is still hot–and in the Northern Virginia area, that means borderline insane. Existing homes are still going very quickly, and new construction has also been affected by delays in permitting and inspections, backlogged supply chains, labor shortages, and increases in the cost of building materials.
“While sales pace is expected to be slower in 2022, impacted by inventory growth for some locations and home types, rising rates predicted for Q2 and buyers being shut out by record prices, we believe the market will remain strong,” says Compass agent Susan Isaacs. “But there is some good news for buyers: Spring will still see low interest rates, and Fannie Mae increased the 2022 loan limit in the region to $980,700, allowing down payments as low as 5 percent for homes priced up to $1,020,000. While this doesn’t offset payment shock associated with higher rates, it does open the door to buyers who were being held back in that price range by the need for a higher down payment.”
But some typical go-to areas of Northern Virginia are also getting too competitive, so homebuyers may need to start looking elsewhere.
McLean is a popular area, mainly because of its school district, and according to Keller Williams agent Nicole Jamil, “It’s getting a bit crowded. There is too much competition there, and it’s very low on inventory. But if buyers are flexible, there is more land in other areas that are very close to McLean, like Falls Church or Pimmit Hills, which is zoned for part of Falls Church.”
With everyone vying for a new home in NoVA, here are some of the top up-and-coming neighborhoods on the market.
National Landing
The neighborhood is made up of Crystal City, Pentagon City, and parts of Alexandria, but it’s also pushing growth and demand in the adjacent neighborhoods like Ballston, Clarendon, and Rosslyn. National Landing is still hot for its access to all things Amazon and Arlington, proximity to DC, transportation options, and new construction condo and apartment pipeline. This neighborhood has convenience and investment value, and due to the pre-pandemic progress made by JBG Smith for National Landing, a good number of residential new construction projects are already in the works and progressing toward completion.
Lyon Park
An upscale “urbanburb” with character, it features single family homes in a variety of architectural styles (mostly late 1800s through the 1950s). Popular parks and great schools abound, and the neighborhood shares amenities with nearby Clarendon. It’s also a very easy commute to DC.
Pimmit Hills
According to Jamil, Pimmit Hills is picking up, especially for builders looking for land to develop into homes. “Anderson Road is particularly attractive to builders right now, and new construction homes are starting to pick up,” she said. With proximity to parks, libraries, great schools, and shopping in Tysons, it’s a central suburb that’s attracting more and more homebuyers.
Reston
With offices for Google, Salesforce, and Docusign, Reston has become a big tech hub. Buyers will experience competition in the area, but depending on the housing type, it’s not as competitive as other Northern Virginia areas, so you may be able to get a teeny bit more for your money.
Del Ray
“Del Ray is always popular because of its community culture, eclectic mix of architectural styles, artsy downtown, popular Saturday farmer’s market, and proximity to Potomac Yard,” Isaacs says. It also offers a reasonable commute to DC and is less than 15 minutes by bike to Old Town. It’s a suburb that doesn’t feel so suburban, thanks to its proximity to DC, the walkable, cobblestone-street neighborhood of Old Town, and its amenities and decently sized townhomes and single-family homes.
Penrose
This neighborhood is about three miles from DC, less than two from the Pentagon, and adjacent to the Fort Myer Army Base with a lot to offer. Housing is a blend of single-family homes, townhomes, duplexes, condos, and apartment buildings of various sizes. Plus, it’s more affordable than other comparable locations. “We especially like the value proposition for townhomes and rowhomes in this neighborhood, both as owner-occupied residences that mature into investment properties, and investment properties,” Isaacs said.
Mosaic District
Buyers like the Mosaic District and recently The Boro area because of the shops and restaurants. Not to mention all of the new apartments, condos, and hotels that are coming up by the metro in Tysons.
Boro District (Tysons)
“Even buildings in the area that are older, like Rotunda, which was built in the 1980s, are getting popular because of great amenities that are all walkable or a short drive away,” Jamil says. Whole Foods is the central amenity in The Boro, along with several shops, restaurants, and big box stores, like the nearby Walmart and HomeGoods.
Feature image steheap/stock.adobe.com
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