When Amazon announced it was planning to build a second headquarters in North America, tons of cities put on their Sunday best and tried to woo the mega corporation.
As Seattle Times columnist Danny Westneat put it, Amazon would undoubtedly be detonating a “prosperity bomb” in the winning city. He saw it happen firsthand in Seattle, home to Amazon’s original HQ.
“For those of us lucky to be born early enough to buy a house back in Seattle BA (Before Amazon) this explosion has transformed us into assessed-value millionaires,” wrote Westneat.™
In November 2018, it was revealed that Amazon HQ2 would break ground in Crystal City, which is a neighborhood in Arlington, Virginia. And as of July 2019, it seems like that “prosperity bomb” has already gone off.
The latest ranking of cities by Redfin Compete Score shows that the two most competitive US housing markets are the ones closest to Crystal City: Arlington and Alexandria. Redfin creates the list based on how quickly homes are going under contract, how many homes sell above list price, and how hard it is for buyers to place a winning bid on a home.
When it comes to how quickly homes are going under contract, here are what the numbers looked like in July 2019, according to Redfin:
- National median: 38 days
- D.C. metro area median: 27 days
- Alexandria median: 14 days
- Arlington median: 11 days
And how many of those homes are selling above list price?
- 46% of homes in Arlington (vs. 27% last year)
- 36% in Alexandria (vs. 24% last year)
- 32% of homes in the D.C. metro area
- 24% of homes nationwide
One primary reason these homes are selling above list price is simple supply and demand. The number of homes for sale in Arlington and Alexandria fell by approximately 50% year-over-year in July. Less homes means more competition in a hot housing market.
And that’s where Embrace comes in.
If you want to place a winning bid in a competitive marketplace, you need a few secret weapons
Buying a home in Alexandria, VA or Arlington, VA could end up being one of the smartest investments you ever make — it’s probably not going to be easy, but hopefully, it’ll be worth it.
At Embrace, we have some products and options available to qualified borrowers that may help them stand out from the competition. If you’re planning to buy a home near Amazon HQ2 in the near future, ask your Embrace loan officer about:
Getting Approved to Move™ will put you ahead of other buyers who only have a standard mortgage pre-approval. You’ll have a fully underwritten loan approval in-hand before you even start looking for a home. Sellers love Approved to Move™ because it’s virtually as good as a cash offer, and buyers love it because it really makes them stand out among the competition.
When you’re buying in a hot market, the last thing you want to worry about is missing your closing. At Embrace, we’re so confident you’ll close on time that we put money on it. If for any reason your Conventional, VA, or FHA loan doesn’t close on time and it’s our fault, we’ll pay you $2,500.
Want to buy in Alexandria or Arlington, but don’t have a down payment? With Embrace’s No Money Down program, no down payment is required. Not one cent. We’ll even help with closing costs. Financing options up to 101% combined loan-to-value on a first and second mortgage. Second mortgage is an interest-only with balloon payment.
Are you a new or experienced investor? If you’d like to buy an investment property near Amazon’s second headquarters for business purposes and don’t plan to live in the house, our Doc Lite loans may be just what you’re looking for. With a Doc Lite loan, there’s no income documentation required — you qualify off the future cash flow of the investment property. You’ll save time, money, and stress.
As more and more homes in Arlington and Alexandria sell above listing price, you may find that a Jumbo loan is what you need. Embrace’s Prime Jumbo is underwritten in-house to our guidelines and rates, so turnaround times are improved and the entire process is more simple than getting a traditional Jumbo loan. We offer loan amounts up to $2.5 million for primary homes, second homes, and investment properties.
Ready to learn more about how Embrace can help make your dreams of homeownership a reality? Fill out this form to have one of our mortgage specialists contact you, or call 1-888-907-6261 to speak with a loan officer right now.