Arlington Update

Wow! What a great house!

1st Open House Sun 11/2 12pm – 2pm  Don’t miss it!!

Spectacular new construction in one of Arlington’s finest neighborhoods! This understated home features a traditional layout that’s roomy and comfortable. From the formal living room to the first floor office that’s great for guests, this wonderful home will meet all of your needs!. A kitchen with everything a chef could want including a breakfast/lunch bar adjacent to the fireplaced family room awaits your culinary creations! Bonus! Finished 3rd floor!

Trying to Make Sense of the $700 Billion Rescue Package, The Stock Market and The Election?

We know what happens outside the world in Arlington, Lexington Winchester, etc. does have and impact on us. The questions is what is it? The answer? We won’t know for a while….

This is what we do know:

1. Buyers are still out there! Yes, I know it is hard to believe but it is true. We received 3 calls today from prospective buyers about various listings that we have.

2. Mortgages are available! Yes, it is true! If you are reading and watching the news, you would have a different impression. There are many different mortgage products still available. This is a matter of qualifying for a mortgage. Until last year a buyer could have low credit scores, a low down payment, low assets and still qualify for a mortgage at competitive rates. Today, if your score is in the mid to high 700′s and have 20% for a down payment, you are able to get the best rate possible.

This mortgage market is all about pricing. Buyers are able to get mortgages, the questions is, how much will the loan cost. In the way that businesses employ peak pricing strategies (think airlines, the closer to the departure date, the more the ticket costs), the mortgage business has adopted some of the same ideas. For instance, if you are closing within 30 days the loan will be at a better rate than if you are closing in 90 days.

3. Inventories in some towns are substantially lower than last year.

Properties on the market (snapshot)
——–Last year                  This year       Difference
——–10/8/2007——-10/8/2008
Arlington      166                  102                   -39%
Lexington     143                  169                  +18%
Winchester    157                  137                  -13%

Low inventory and shorter market time bring stable prices and in some cases they are actually rising!

A Presidential election always throws uncertainty into buyers minds and this year is no different. Past history tells us that as more things become known then uncertainty melts away. We believe that there is a pent up demand for houses and that buyers will be moving as soon as there is more comfort in the market. In the meantime, stay as sane as you can through this uncertain period!

From Warren Buffett:

“I have no idea what the stock market is going to do next month or six months from now,” Warren Buffett told CNBC on Friday. “I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well.”

Of course give us a call with your thoughts and concerns any time!

We are bullish on real estate!