First, let’s put the Arlington market in perspective with the rest of the country. In many areas prices, sales and future expectations are grim. High foreclosure and unemployment rates, short sales, and millions of owners “underwater” with their mortgages are creating serious pain. In many markets, there exists a huge inventory of unsold homes and virtually no buyers.
Although we are experiencing some of the same problems, they are not as severe. We are benefitting from some of the national policies designed to help the rest of the country. The decision by the Feds to keep interest rates historically low is creating a mini-boom for us. As I write this blog, I note that Leader Bank, an Arlington based lender, is offering a 30 year fixed rate mortgage, with no points, at 4.375%. In my 40+ years as a real estate broker in Arlington, I have never seen rates this low.
When you stir the ingredients of low mortgage rates, lower sales prices, a diverse employment base, proximity to a world class city and many other desirable area components, then add-in the benefits of living in Arlington, it is no wonder that buyers want to buy.
This market is different than previous markets. Buyers rightfully agree that sales prices are apt to trend down a bit more. Although it may feel as if we are at the bottom, we can only determine this with hindsight when we look back at the statistics.
Today’s buyers are savvy, intelligent, well trained and willing to buy only if the right combination of circumstances is present. They’ll buy a home if it is well located, in great condition and priced aggressively. Homes that exhibit all of these qualities will sell quickly and at a very good price. If one or two of these factors are not present, the home may not sell, and, if it does sell, the differences will be reflected in the price.
I’ll summarize by saying, if you are selling, you are fortunate to be in a market where there are qualified home buyers ready to buy, but you must be open minded to the realities of the marketplace. If you are buying, you are blessed with lower sales prices, amazingly low mortgage rates and a reasonable expectation of continued employment. It is rare that a market offers so much for both sides.
We will soon post the Jan-July sales stats….
Bob Bowes
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