Reston's housing market changes

By Roxanne Watts

Pumpkins brighten doorsteps all over town now, including at Julie and Ned's new Reston home. As the new owners revel in the beauty of their home and the season, they think back to the circumstances that brought them there. Their story illustrates recent changes in the Reston market, both in buyer behavior and seller expectations.

Julie and Ned were not the first to fall for their lovely renovated home in South Reston. It went under contract within five days to an overseas buyer who had a change of heart and withdrew. Realtors throughout Reston are noting more buyers voiding contracts, and many are routinely seeking backup contracts.

Soon after the home went back on the market, Julie and Ned toured it and loved it but did not act. They had a list of other homes to consider and wanted to investigate Reston Association's benefits and limitations. Two other couples were equally interested but were tracking other homes, comparing features and pricing, and taking their time.

On day 32, all three submitted contracts, all at full price and all with home inspection contingencies. Julie and Ned's cash offer was selected for a quick two-week settlement date and no financing contingency, removing risk for the seller.

Thirty-two days, then three offers: That seeming contradiction says a great deal about our market. Buyers are taking weeks to compare numerous properties before deciding. With rates increasing to the mid-7s, they are reassessing what they can comfortably afford, and watching the economy closely. Locally, average days on the market have increased from 26 to 42 days, and to 55 days nationally. Yet when condition, location, pricing and presentation come together, serious buyers will compete. Well-priced homes in excellent condition can still attract multiple offers.

Not every segment of Reston is behaving the same. As of Sept. 20, detached home values were still appreciating, townhome prices had plateaued and condominium values had dropped 5%. Condominiums are facing substantially more competition from a 50% increase in inventory, and their fees can be a deterrent. The typical fee is $620 per month, but they vary enormously, from $379 to $2,500 depending on community, unit size and inclusions. Some large Midtown units, about 3,000 square feet, exceed $2,500 per month. Owners in some complexes also pay the Reston Association assessment of $890 annually.

Comparatively, single-family homes are $74 per month and townhomes around $145 per month. The pricing data is from 1,027 Reston closings listed in Bright MLS for the 12 months preceding Sept. 20.

Mortgage rates, hovering around 7.5%, are having a huge impact. To compensate, lenders are bringing back old programs, such as the 2-1 buydown, where the rate can be reduced for a couple of years for a fee. Some sellers are offering to cover that fee or provide a credit for buyers to use at their discretion.

Condition matters more than ever. If you are a seller planning to list early next year, choose an agent now and walk through the property to identify which improvements are worth making and which are not. Line up painters and other contractors before their schedules fill. Have photos taken while there is attractive greenspace or fall color. Begin discussing pricing now, and know the first weeks on the market bring the greatest attention.

With all these changes, Reston maintains its enormous appeal. The lakes and greenspace, amenities, restaurants, shopping and entertainment create a uniquely desirable place to live and attract the most successful businesses. The beautiful neighborhoods and their residents all contribute to a strong sense of community and an extraordinary place to call home.

Speaking of community, don't miss our Annual Pumpkin Giveaway on Saturday, Oct. 17, from 9 a.m. to noon at Oakbrook Church, 1700 Reston Parkway. Coffee, donuts and plenty of goodwill will be on hand.