Arlington Va Realtors Face Shortage of Housing Inventory
The absorption rate for Arlington Va Real Estate has flipped to that of a sellers market in many sub markets or Arlington. What this means is that the current supply of housing inventory in Arlington compared to the current volume of purchases is out of balance. Many economists and the National Association of Realtors consider 6-months of housing inventory to be a balanced market. More than 6-months of housing inventory is considered a buyers market and less than 6-months of inventory is considered a sellers market. It makes sense that Realtors in Arlington are facing the challenge of trying to accommodate home buyers with few choices. As the months of available housing inventory decrease in Arlington, upward pressure on prices will grow.
Instead of generalizing the entire county of Arlington I am going to break down the different segments of the Arlington real estate market to demonstrate my point. Below are numbers based on statistics I extracted from the multiple listing service on March 17, 2010:
North Arlington (zip codes: 22201, 22203, 22205, 22207, 22209, 22213)
Months Supply of Inventory = 4.7
1 Bedroom Condos in North Arlington
Months Supply of Inventory = 2.5
2 Bedroom Condos in North Arlington
Months Supply of Inventory = 2.6
Townhouses in North Arlington Priced $500,000 – $700,000
Months Supply of Inventory = 2
Townhouses in North Arlington Priced $700,000 – $1 million
Months Supply of Inventory = 3.5
Single Family Houses in North Arlington Priced $500,000 – $700,000
Months Supply of Inventory = 1.4
Single Family Houses in North Arlington Priced $700,000 – $1 million
Months Supply of Inventory = 1.4
Single Family Houses in North Arlington Priced above $1 million
Months Supply of Inventory = 4.9
It seems that homes with the lowest supply of housing inventory in Arlington Va are those that are currently affected by home buyer taking advantage of the tax credit. This has a lot to do with the amount of demand from home buyers in Arlington.
Why is housing supply so low in Arlington?
- Seasonality may be playing a factor this early in 2010. People typically wait until the bad weather is behind us in Arlington before putting their homes on the market for spring. Homes show better in the spring and more home buyers are likely to be out looking. If today’s beautiful weather is a sign of what’s to come, we may start seeing more housing inventory hit the Arlington market very soon.
- Some homeowners are not in a position where they can sell even if they wanted to. They may owe more on their properties than they are worth. If you purchased a home in Arlington between 2006 and now it is not likely that they home has increased in value enough to make a profit after paying for closing costs. Obviously, there are exceptions.
- If a homeowner has children in school, they may not want to move until the school year is complete.
- Homeowners are in a wait and see position. They are reluctant to invest in a new home while National housing reports about real estate are so grim.
- Some homeowners in Arlington may just not realize that the market seems to be turning the corner. There are a lot of mixed messages in the media and it is difficult to discern how your home is performing. If you are one of these people we are happy to provide you with a free pricing analysis that will break down home sales performance in your neighborhood and the current market value of your home.
Please share with us any ideas you have about why the housing inventory levels are so low in Arlington Va.
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