Here are my 2015 Predictions for the Arlington County Real Estate Market. To review my 2014 predictions, click here.
Many of these will be similar to the ones from 2014 because I think the market will continue to improve.
1. Interest rates WILL increase, probably to 4.5-5%. Many expected that to already happen in 2014, so I believe we will see a slight increase this year.
2. More new construction, mostly single family homes, will hit the market. I also think we’ll see fewer lots go up for sale on the general market as many people are calling builders directly to try to sell their lots. Many people think of Arlington as a place with a lot of money, but what they don’t realize, is the “cheapest” homes for people who just want to live in the County is going to increase. It’s hard to even find a house in N. Arlington under $600k that won’t be snatched up by a builder to be torn down.
3. Prices will increase. I expect to see a bigger increase in sale price in 2015 as the market continues to see higher dollar sales.
4. Inventory will increase, but stabilize. I don’t expect to see a shortage of inventory nor do I think we’ll have a surplus of homes. I think we’ll enter into a balanced market (versus a sellers or buyers market).
5. Percentage of first-time home buyers will increase. I have no way of tracking the County sales by first-time buyer or not, but I can tell you 40% of my 2014 sales were first time buyers.
So that’s that. We’ll see in a year if any or all of these were true!
Wishing you a very happy and prosperous new year!!