BOWES Real Estate Blog

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

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.