Anyone have an idea on how the pending Metro line extension will impact house prices in the Reston area?

I'm from the area and have obviously been keeping up on this issue, a gret place for more info, is: http://tysonstunnel.com/

As far as home prices I think everyone is expecting that it will raise prices, mass transit always is a plus for areas that don't currently have it...however who knows how long until the rail actually gets out to Reston.  That's the bigger question.

 Thankfully in Reston it probably won't be elevated, but in the Tysons area it is planned to be and will be a massive eyesore, see the photo below.

The latest I have heard is that the metro should reach Reston by 2012.  I agree that home valuations will be positively impacted by the progress of the metro extention as it nears completion.  I think it will impact homes under $1 million the most (there are still a few left).

I hope your right, ibanker.  Hopefully all of the condos in the Town Center will appreciate when Metro gets out there.

What do you think will happen to house values going a bit further out like Ashburn??

Relatively speaking, I think DC is a great market, but I think the houses over $1M are going to feel pain for a while.  Houses requiring jumbos and super jumbos are going to see softness for years.  Near-term appreciation is out and there is more downside on the way.  Too much speculation in rental homes and bad debt/subprime markets will take a while to sort out.  The Fed easing is just a bandaid so don't be fooled by that.  If inflation picks up and rates go up, the real estate speculators will flee thier adjustable mortgages and the "for-sale" glut will crush valuations further.

Geographically, the further out the more pain.  Ashburn will be soft for a while.  DC, inside the beltway, and business centric locations like Tysons and Reson Town Center will hold up better.  Traffic is becoming a major issue so homes close to work and metro will command a premium.  Homes under $750,000K will hold up better than the big ones.  Condos were overbuilt and are always more suspetable to cycle swings - up and down.  Condos may take a while to recover.  But metro wil help and by that time, Reston will be built out and demand will take over again as supply is held constant.  If you have staying power, you should be fine in the Town Center.

This has got to be one of the best times to buy.  ibanker is correct about the Fed's "Band Aid", it has less to do with mortgages than the general public thinks.  It is more about consumer confidence and getting more money in circulation than anything else.  To many people are discoured to buy right now because of what they here in the media.  The media often gives you a lot of statistics and averages, BUT they often fail to say a key word..."NATIONAL".  A national average is completely different than a "LOCAL" Average.  Right now Local Averages are all over the place.  Very area specific so to say.  For MOST places inside the beltway, prices have remained steady.  For  MOST places outside the beltway, prices have dropped substantially.  HOWEVER, you really need to make up your own mind and see if it the right time to buy or sell for you and what your needs and wants are.  For this, you should definately consult a REALTOR to get you ALL the facts.

Back to the origional question about the new metro line...providing that everyone gets their acts together, the metrorail should reach reston by 2012, Dulles Airport by 2017/2018 and Ashburn by 2022.  

Any decision to buy or sell around a metro station is a wise one and will always keep its value, However...if you try to "TIME" the market around the schedule of the metrorail...you might get burned if you decide to wait too long.  Interest rates may go up only 1/4 to 1 % and then all of a sudden, you realize the "DREAM HOME" you wanted, you can no longer afford because interest rates went up.  OOPPS. 

For more information on how interest rates can effect your buying power, you should consult a Lender

For more information on area housing price trends, you should consult a REALTOR.

also...for more Real Estate knowledge, check out my website at www.forsalebyPatrick.com   

Pat-

 Good points...I thought the target was to get the train out to Dulles quicker than 2018, but I guess with all the issues there having about the Tunnel, etc. who knows when it will actually happen or get htere.