The Northern Virginia real estate market is very closely linked to the fate of the Washington, D.C. Real estate market, partially just because of the geographic proximity between the two locations. Northern Virginia's main cities, including Fairfax and Arlington, also serve as bedroom communities for numerous commuters who have jobs but not houses in Washington D.C., meaning that the Northern Virginia real estate market is heavily residential. Ever since the nationwide recession began in the second half of 2008, the region has been in serious decline in all sectors - residential, commercial, and even industrial. The hope of local and national economists, however, is that the Northern Virginia real estate market may have bottomed out, signaling the arrival of a gradual recovery.
It appears that the residential sector of the Northern Virginia real estate market may have battled through the worst of the crisis. According to a July 10, 2009 article in the Washington Business Journal, “Northern Virginia Realtors say the homebuyers' market may be starting to stabilize. The Northern Virginia Association of Realtors noted that average second-quarter sales prices have climbed steadily from $405,514 in April, to $433,257 in May and $451,345 in June.” This means, in general, that homes are spending less time on the Northern Virginia real estate market, and the Northern Virginia real estate is selling for higher prices than they did in the heyday of the crisis. A July 29, 2009 article in the Washington Examiner echoed the same sentiment for the larger D.C. Area, saying that “Washington area home prices rose in April and May, but experts caution that values still have a long way to go.”
A July 23, 2009 article in the Wall Street Journal makes the point, however, that signs of life in Northern Virginia real estate cannot necessarily be linked to any larger, nationwide trend. “Memo to those wondering when the housing slump will end: It depends on where you live. The Wall Street Journal's latest quarterly survey of housing-related data shows that the market for residential real estate is healing at varying speeds in different parts of the country.”