Old growth neighborhood
The economic theory of "Progression and Regression" states that building a home that is valued substantially above other properties in the same neighborhood will most likely cause the newly built home to value downward toward the other properties. This is sometimes called "overbuilding" because sometimes a homeowner will put additions or improvements on his home that are substantially better than his neighbors.
But the theory is called progression and regression because a home that is in a diminished condition in a better neighborhood will command a higher value. Additionally it is possible for a neighborhood to reach a tipping point. In other words, if enough of your neighbors "overbuild" your house could increase in value due to the increase in value of the neighborhood.
In Northern Virginia, we see this in many neighborhoods in and close to Alexandria and Arlington. For example, in Del Ray, older working-class homes have been replaced by or improved to become pricier and much more luxurious. Lyon Park and the area surrounding Belle Haven is not the same neighborhood that I remember as a child. Both of these areas have become much more exclusive.
Are you looking for new construction in Northern VA?
Will is the principal broker of Nesbitt Realty and Condo Alexandria. He is licensed in anywhere in the Commonwealth of Virginia, but focuses on those communities found in and around Alexandria, Arlington, Mount Vernon and Springfield/Franconia.
Will has been involved in real estate management, sales and investment for more than twenty years. He is a veteran of the U.S. Army. While in the army, he studied Russian at Monterey's Defense Language Institute. He is also a "veteran of the dotcom wars" and built most of the sites associated with NesbittRealty.com
Will currently resides in Belle Haven Estates just outside Old Town, overlooking New Alexandria. He is a former president of the Mount Vernon Youth Athletic Association and founded the Alexandria Fun with Friends Group. Will is the author of BattlestorM, a tabletop fantasy game, which was published by Ral Partha Publishing in the late '90's, and Arthur's Realm, a boardgame available at the Gamecrafter.
