Now five months into the year, we are able to make some meaningful observations about the Arlington real estate market.
The news is quite positive. Sales of singles, multi’s and condo’s are all up dramatically over 2009. Additionally, we are witnessing a slight increase in values for the first time in several years. The chart analyzes the three property types and summarizes all sales data.
You may wonder why I am more impressed with the sizable increase in sales, than the price increase. The answer is that the increase in the number of sales reflects a change in buyer confidence about the economy, a sense that prices have bottomed and a recognition that with fixed rate mortgages under 5%, buyers are beginning to appreciate that locking-in a mortgage rate for thirty years may save more money than trying to guess when prices have reached their absolute bottom.
There are other factors, not the least of which is pent-up demand. Buyers have been waiting on the sidelines and putting their lives on hold. They are through waiting and are back in the market.
The other factor was the availability of the Federal Tax Credit. Although I do not feel that it was a major factor locally, there is no doubt that it had its influences and that we will continue to see those influences in market data through 6/30/2010. By 8/31/2010, we will have a better opportunity to assess the results.
As I mention frequently, you must be careful when analyzing real estate date. We are almost never selling the same homes a year later, and, just a few very high priced, or very low priced homes can affect the results.
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