First a review of where we came from. For Arlington, Ma. the market volume peaked in 2006, and the prices peaked in 2005, at an annual median price of $503,000. Prices have shown approximately a 6% pullback since that time. The number of homes sold in 2006 was 314. In 2009, 247 homes sold showing a volume increase from the 2008 low. The graph below shows the numbers for the last 10 years. The line is for the median price and the bars for the numbers of homes sold.
There is a seasonal volume effect on the Arlington market with Q1 (Jan, Feb, Mar) and Q4 (Oct, Nov, Dec) being market lows. This seasonality should be taken into account when looking at any monthly data. 2010 Q2 volume was up substantially and at the same level as Q3 of 2009. We can expect that this volume will drop off as we move through the summer as the tax incentive has expired. The graph below shows the Quarterly numbers for the last 4 years.
The line is for the median price and the bars for the numbers of homes
sold.
There have been fewer homes on the market this past year with sellers holding homes off the market and thereby restricting the supply. It appears that prices are now moving up off last year's lows. With mortgage rates at historic lows we can expect continued market strength as we move through the summer of 2010.
What this means for homeowners in the near term is that there is still demand for homes and that while sale prices will be down from 2005 highs Arlington continues to be a high value market, and homes can be sold quickly. Homeowners who purchased more than 4 or 5 years ago still have significant equity, those having purchased or re-financed recently unfortunately will likely not see strong price appreciation until 2011 and beyond.
For a monthly view of the market click here for the Monthly Report, or call Mike at 781-771-7216 for a detailed review of how the market can affect your goals.
