Who is buying all the $900 and up homes? (Arlington, Reston: real estate, attorneys) - Northern Virginia - Virginia (VA) - City-Data Forum

Bass101 · 03-21-2010, 04:22 PM

My husband and I have been house hunting for almost 9 months. We haven't found anything in our price range. However, there seems to be a lot of inventory in the $900 and up price range.

We don't understand how it is that so many people in the NoVa area are able to buy homes in the 1 million-1.5 million dollar range. The other day we were driving through Great Falls, one of the areas we like, and nearly all the homes there are 1 million dollar homes and up. Who is able to afford these homes, and how is it that the NoVa area can have enough people who are able to afford these homes? What kind of occupations do they have? We sometimes see young families in these homes, with young kids. How are they able to have the level of income to afford these? We are confused as to why there is so much inventory in this price range and these homes are selling! And why there is so little in our price range. We can't find anything we like.

normie · 03-21-2010, 04:36 PM

LOL, well I can tell you it ain't me!

Anyway, to answer your question, a lot of wealthy people live here, and a lot of wealthy people have second homes here (this includes a number of people from other countries who want to be near DC for a variety of reasons). Some of this wealth is inherited. Some of it comes from investing in Virginia real estate decades ago when it was less expensive. Some of it is the result of two-income families in which both spouses have high paying jobs.

More and more companies are moving their corporate headquarters here, and that means CEOs and other top officers move here as well. Attorneys and physicians can make a lot of money in this area. Investors and entrepreneurs can do well, too. I wouldn't be surprised if a few internet millionaires live here, too--maybe even some internet porn stars.

novajs · 03-21-2010, 04:48 PM

Quote:

Originally Posted by Bass101

My husband and I have been house hunting for almost 9 months. We haven't found anything in our price range. However, there seems to be a lot of inventory in the $900 and up price range.

We don't understand how it is that so many people in the NoVa area are able to buy homes in the 1 million-1.5 million dollar range. The other day we were driving through Great Falls, one of the areas we like, and nearly all the homes there are 1 million dollar homes and up. Who is able to afford these homes, and how is it that the NoVa area can have enough people who are able to afford these homes? What kind of occupations do they have? We sometimes see young families in these homes, with young kids. How are they able to have the level of income to afford these? We are confused as to why there is so much inventory in this price range and these homes are selling! And why there is so little in our price range. We can't find anything we like.

Just as many people suffered from the housing downturn, there are as many people benefited from the real estate boom and made a lot of money. If you bought houses in 90s and sold at the peak, you could have made half a million in cash or more. Now that 1 million dollar home does not seem that unaffordable anymore if you can put down half a million.

JD984 · 03-21-2010, 05:24 PM

Quote:

Originally Posted by Bass101

My husband and I have been house hunting for almost 9 months. We haven't found anything in our price range. However, there seems to be a lot of inventory in the $900 and up price range.

We don't understand how it is that so many people in the NoVa area are able to buy homes in the 1 million-1.5 million dollar range. The other day we were driving through Great Falls, one of the areas we like, and nearly all the homes there are 1 million dollar homes and up. Who is able to afford these homes, and how is it that the NoVa area can have enough people who are able to afford these homes? What kind of occupations do they have? We sometimes see young families in these homes, with young kids. How are they able to have the level of income to afford these? We are confused as to why there is so much inventory in this price range and these homes are selling! And why there is so little in our price range. We can't find anything we like.

A lot of those homes aren't selling right now, particularly in Great Falls. The top markets for homes in the $1-1.5 million range in NoVa seem to be North Arlington, McLean and Vienna, not Great Falls. And among those markets, North Arlington is probably the hottest. There's actually a much more active market for houses between $650-900K, which is why it strikes you that there isn't much inventory in your price range. Having followed your posts, however, I also think you and your husband are, ahem, a bit more discriminating than the average buyer.

Who buys the $1+ homes? People with money acquired in lots of different ways. If you're a professional (lawyer/accountant/consultant/doctor) who has made a six or seven-figure income for 10-30 years, is able to sell a house bought before the run-up of the last decade at a nice gain, and is otherwise frugal, you can afford the down payment for an expensive house. If you worked at a local high-tech company and got paid in stock options that you were able to exercise for a big pile of cash, same story. If you're a foreigner with petrodollars or an immigrant who founded a successful business, same story. Big inheritances are always nice, too.

Compared to a lot of wealthy areas, people in the DC/NoVa area are considerably less ostentatious. There are lots and lots of quiet "millionaire next door" types here. But people in this area do like their houses and many are prepared to pay a pretty penny.

SteelCityRising · 03-21-2010, 05:32 PM

Quote:

Originally Posted by JEB77

Compared to a lot of wealthy areas, people in the DC/NoVa area are considerably less ostentatious. There are lots and lots of quiet "millionaire next door" types here. But people in this area do like their houses and many are prepared to pay a pretty penny.

I would politely disagree with this. All I see on the roads around me are BMWs, Lexuses, Jaguars, Audis, Benzes, Infinitis, Acuras, and other luxury vehicles. A lot of people wear very noticeable designer clothing. It's not difficult to tell places like Great Falls, McLean, Vienna, North Arlington, Reston, etc. are very "chi-chi."

JD984 · 03-21-2010, 05:45 PM

Quote:

Originally Posted by RestonRunner86

I would politely disagree with this. All I see on the roads around me are BMWs, Lexuses, Jaguars, Audis, Benzes, Infinitis, Acuras, and other luxury vehicles. A lot of people wear very noticeable designer clothing. It's not difficult to tell places like Great Falls, McLean, Vienna, North Arlington, Reston, etc. are very "chi-chi."

I might have the same reaction if I'd spent most of my life prior to coming to NoVa living in the Scranton-Wilkes Barre area, but my perspective reflects also having lived in NYC and NJ, areas that overall had a much higher "bling" quotient than NoVa. Plus I'm not sure if I know the difference between designer and non-designer clothing!

normie · 03-21-2010, 06:42 PM

LOL, I think you will see more people eating at Chi-Chi's than people acting chi chi.

Do we have chi chi people here? Of course! Nova's very diversified, we have a little of everything here, even chi chi folk. Which is just fine by me 'cause I get a kick out of saying the word chi chi!!!!!

But enough chi chi-ing. Getting back to the topic of the typical wealthy person... well, you may find the designer suit bunch closer in to DC, but out here in Loudoun people aren't that into being ostentatious (at least, not in that way

.

Look at the people from the photo tour of Waterford... the people in that town definitely have big bucks but you'd never guess by the clothes and cars in these photos.

http://www.keogan.com/waterford0048.jpg (broken link)

http://www.keogan.com/waterford0010.jpg (broken link)

http://www.keogan.com/waterford0032.jpg (broken link)

http://www.keogan.com/waterford0028.jpg (broken link)

http://www.keogan.com/waterford0039.jpg (broken link)

Waterford Photo Tour

DCNY · 03-21-2010, 06:51 PM

Quote:

Originally Posted by Bass101

My husband and I have been house hunting for almost 9 months. We haven't found anything in our price range. However, there seems to be a lot of inventory in the $900 and up price range.

We don't understand how it is that so many people in the NoVa area are able to buy homes in the 1 million-1.5 million dollar range. The other day we were driving through Great Falls, one of the areas we like, and nearly all the homes there are 1 million dollar homes and up. Who is able to afford these homes, and how is it that the NoVa area can have enough people who are able to afford these homes? What kind of occupations do they have? We sometimes see young families in these homes, with young kids. How are they able to have the level of income to afford these? We are confused as to why there is so much inventory in this price range and these homes are selling! And why there is so little in our price range. We can't find anything we like.

I know a couple working(both) of them for government for 10year are looking to buy 1million dollar house. So you have to work for government...

We bought house half of that price and it was too much for us..

wingerr8 · 03-21-2010, 06:54 PM

If there weren't any "chi chi" people here, then Tyson's Galleria wouldn't exist.

Keep in mind that this area's biggest employer is the federal government and if you combine a husband and wife's salary for a mid-high level gov bureaucrat, that could easily top $250k/year

normie · 03-21-2010, 06:55 PM

BTW, for the sake of new members... the word chi chi is sort of an inside joke here. Like the woolly bear, it's one of those things that we've had fun with off and on all year. We've even had a few threads on this word, including this classic:

Which areas deserve to be called chi chi?