BOWES Real Estate Blog

1^st QUARTER 2010 vs. 1^st QUARTER 2009

The first quarter MLS sales results have been analyzed. Some readers may be surprised; some may not. If you are a buyer, early indications are that 2010 may be a great time to be a buyer. We are still enjoying the benefits of the tax credit, mortgage rates are still hovering around five percent and the inventory has grown. And, more importantly, prices are lower than last year.

Whenever we compare real estate prices over a single quarter, it is important to note that it is almost never the same home being sold twelve months later and if there are more sales in the lower price range, the data can be misleading.  In other words, if in the first quarter of 2009, there were a number of higher priced single family homes sold, and, in the first quarter of 2010, there were a greater number of lower priced condominium sales; the average prices would be less. As we move into the second and third quarters, we will be able to present a more accurate snap-shot. With that caveat, here are the numbers.

If you are a seller, it is very obvious that more homes are being sold. The days on market have decreased and Arlington continues to attract financially qualified buyers with good down payments, good credit scores, and the ability to get the seller to the closing table.

We continue to be very fortunate to call Arlington our home. We are in a position unusual to most of the country. We are neither in a strong buyer’s nor seller’s market, but a market where people can buy and sell property within transactions which seem to be fair to both parties.

We like that!

The year has ended and the stats are in. The question – did Arlington real estate continue to perform well in 2009? I have just completed a summary of single family home sales and condominium sales for the two years. The categories are: a comparison of the number of sales for each property type and average sales price for each property type.  All of the statistics are based on all sales data provided by MLS-PIN, the primary multiple listing service for Massachusetts.

It is important to understand that the properties that are sold from one year to the next are almost never the same properties. Therefore, we are never making an apples-to-apples comparison. What the data shows is a strong indication of value, but not an exact comparison.

Single family home prices may have hit the lowest possible one year change of less than $1100.00 from the previous year. Condominium sales prices are frequently skewed, due to a new conversion, or some other block of sales occurring in a single year.

The numbers confirm that Arlington continues to be extremely resilient to volatile market conditions and the economic down-turn.

Mortgage rates are hovering around 5% for a 30 year fixed rate. Many experts are expecting mortgage rates to increase in 2010, as the government borrows money to pay for the deficit. With prices that may have hit bottom and very attractive mortgage rates, this may be an excellent time to buy. Also, do not forget the $8,000.00 and $6,500.00 tax stimulus incentives that are currently scheduled to expire for sales that are not under contract by April 30, 2010.

Fueled by a powerful combination of historically-low fixed mortgage rates, an $8,000 tax credit, and affordable prices, sales of existing homes in the Northeast jumped by nearly 16 percent last month, according to the National Association of Realtors.

Here in Arlington the Spring real estate market is in full swing, but our housing inventory is the lowest it’s been in years! When you review the chart below, you will also note that the average priced home in Arlington is higher than it was a year ago, and the days-on-market is lower.

Buyers are coming out in droves to see Arlington listings and it is not uncommon to have multiple offers on well-priced homes. In fact, Arlington listings are being scooped up faster than they are being replenished.

If you are surprised by this data (as many are) and would like a BOWES consultant to provide a free analysis of what your home may be worth, please call us at 781-648-3500.