Arlington County Real Estate: 2010 Year in Review
I’m calling 2010 a rebound year. Taking a high level look at the year, there were several factors that were in play:
1. $8,000 Federal Tax Credit for First-Time Home Buyers, $6,500 Federal Tax Credit for “Move-up” Buyers
2. Historically low interest rates (3% for 15-year, ~4% for 30 year fixed)
3. Lower levels of Foreclosures and Short Sales
These three factors were the main influencers on market stability and pricing this past year. You can see in the chart below, courtesy of MRIS.com, that historically, average prices are working their way back up, from the lows we saw at the end of 2009.
As far as time on the market, we saw highs in 2008 and 2009, but 2010 saw another drop in days on the market until contract. Also courtesy of MRIS.com:
Heading into 2011, we’re carrying inventory levels back at 2007 levels, right before the recession started. We went into a shortage this summer, right after the tax credit expired, as people were grabbing properties off the shelves. Inventory levels are low, but I suspect we’ll see an increase as 2011 gears up for the spring market:
Want more? Read my 2011 market predictions.