Sources say: yes.
On August 1st I did a post on the Arlington Condo market and the steady gains we have seen since our bottom in 2009. Well now the numbers point to a total recovery for the Arlington market as a whole. In fact, average prices are back to about 96% of the averages during our peak in 2005. Look at these numbers:
Peak:
November, 2005
Average Sale Price: $549,500
Bottom:
March, 2009
Average Sale Price: $387,500
NOW:
June, 2011
Average Sale Price: $526,500
We’ve continued to see steady gains month over month since our bottom in early 2009. It appears from my own calculations the August numbers (to be released next week) will be even higher than June numbers. The numbers quoted above are taken from statistics released by NVAR and MRIS (our local Realtor(R) board association and multiple listing service).
What does this mean for the future of our market? Without a crystal ball, I don’t know. But I do know that with interest rates predicted to be low for the next 1-2 years, more buyers are likely to enter the pool. The unknown right now, is how loan limits will effect the more pricey homes in Arlington. As of October 1, conforming loan limits will go from $729,750 to $625,500. So anything above a loan amount of $625,500 will require a significant increase in your down-payment to get a lower interest rate, because loan above that limit will be subject to a rate increase. That might mean more properties will sell in the range up to $650k-ish, which actually may continue to drive up prices as demand increases.