Arlington Metro housing report, May

ARLIngtOn mEtRO HOusIng REPORt mAy 2021

By Johnnie Morine

Arlington real estate, like all real estate, is subject to the rule of supply and demand. The months of inventory is used to calculate demand. It takes about 2.5 months of inventory in Arlington for the market to be neutral.

Arlington County has fewer than 50 regional historic districts. Thirteen of them are singlefamily homes, and only ten are privately owned. One of the privately-owned historic houses recently went on the market for the first time in 25 years.

The Eastman-Fenwick House is a Queen Anne-style Victorian frame house designed and built for Albert Prescott Eastman in 1876. Sally Prescott, his grandmother, left him the property. The house was called Everbloom by the Eastman family and was enrolled with the Virginia Historic Landmarks Commission in 1980.

HOW REAL ESTATE MARKET IS FOR BUYERS IN ARLINGTON

Despite all of the great news about increasing real estate prices, a family earning the Greater Phoenix median income of $79,000 could only afford 62.8 percent of what was sold in the first quarter of 2021. The National Association of Home Builders reported that a family can afford to spend about 28 percent of its gross income on housing. That implies that 62.8 percent of homes sold cost their new owners $1,843 or less a month, supposing a 10% down payment covering principal, taxes, interest, and insurance.

According to HUD, $79,000 reflects a 26% rise in the local median annual income in the last five years, up from $62,500 in 2016. Although this is comforting, it does not alleviate the frustrations of searching for homes in this market.

Last month, 56 percent of all deals closed above the asking price, with half of them going $15,000 or more above the asking price to win. In the last seven weeks, half of all MLS listings that fell under contract were only on the market for six days or less. However, in recent months, investors have seen a glimmer of hope as supply counts have stopped falling, and prices in the $500K-$800K range have risen by 40% since February.

Supply is still 69 percent lower than this time last year, so it’s a long way from being considered regular, but it’s at least something.

How Real Estate Market is for Sellers in Arlington You probably won’t notice, but the real estate market has started to cool. It’s still hot; but, even being cooler than 500 degrees, 400 degrees is still hot.

Sellers should still expect several offers and closings above the asking price; however, it is necessary to note that supply has ceased to fall and has begun to rise in some price points above $500,000.

Season to season, Greater Phoenix supply should decrease rather than flatten or increase at this time of year. As interventions deviate from the norm, they may signal the start of a trend.

This trend would be overlooked because supply remains significantly smaller than demand, making any small rise in competition insignificant to a seller’s ability to secure a buyer, perhaps one willing to pay more than the asking price.

The number of list price drops, on the other hand, is one of the early signs that a market is shifting. For example, supply between $600,000 and $800,000 has increased 45 percent since late February; over the same period, the number of weekly price reductions increased 223 percent and reached its highest level in nearly six months. That is noteworthy. Price declines have stayed low and steady in other price points in which supply has flattened out.

The advantage in every market, not just real estate, is being among the first to notice when things are changing.

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References

https://www.rentcafe.com/average-rent-market-trends/us/va/ arlington/ https://metrorealtyaz.com/arizona-real-estate-market-reportthis-month/

tHe PoWeR Is noW MAGAZINE

eAst coAst EDITION

By Emerick Peace

these are the mistakes to avoid between loan approval and closing

You’ve spent years working hard and saving for a down payment, and finally, the American dream of homeownership is a step away from becoming a reality when you get pre-approved for a home loan. Is it time to celebrate yet? Not yet. In fact, you’re just getting into the most critical stages of the homebuying process. One wrong move and all your hard work, dedication, and sacrifices could wash down the drain. This is likely to happen since your lender will recheck your credit right before closing. Certain mistakes would lead them to question your creditworthiness. Let’s find out which ones so that you know what to avoid.

MISTAKE #1: SWITCHING YOUR JOB.

You should avoid changing your job as much as possible for the period between loan approval and closing. This is simply because changing employers could result in delays due to the procedures involved, including employment and salary verifications. But don’t get me wrong, I do not mean that you should turn down an excellent once-in-a-lifetime career opportunity. But any optional moves should wait until the closing is done. Anything that can wait, let it wait to avoid further delaying your much-anticipated homeownership opportunity.

MISTAKE #2: MAKING HUGE PURCHASES.

You’ve already been pre-approved for a mortgage and found a suitable home for you after weeks or months of hunting. At this point, it’s normal for the adrenaline to start kicking in and the daydreaming to take the course. In the middle of the anticipation, the imagination of personalizing the house begins, and you get into a ‘buying mode.’ Besides, you’re excited to have discovered your creditworthiness. You then think of making huge purchases of furniture, jewelry, a nicer car, or even a boat if you’re set to move to a location in the vicinity of a river or lake.

If you make such huge purchases, you’ll be making a lethal mistake. Remember, your debt-to-income ratio is a vital factor when being considered for a mortgage loan. Making any huge purchases at this point takes money or credit, while your mortgage approval was based on a certain criterion which could be your debt-to-income ratio, cash reserves, or assets. Altering those criteria in any way risks jeopardizing the closing and funding of your new home as you could exceed the ratio that’s acceptable by your mortgage lender.

MISTAKE #3: DO NOT APPLY FOR ANY NEW CREDIT ACCOUNTS.

Contemporary society is flooded with all sorts of credit opportunities. And let’s face it, the trend is quite tempting with all department stores trying to get you to apply for their credit card at check out while promising to give you discounts on your purchases. Similar to taking a new debt, applying for a new credit account in the period between preapproval and closing poses a risk of jeopardizing your mortgage approval process. Remember, your mortgage pre-approval was based on certain criteria, such as credit profile, and you don’t want to mess with it. documents, proof of employment, a list of assets, and most importantly, your bank statements before you’re pre-approved. Most lenders would want to see your bank statements for the last two months to verify whether you can afford the amount needed for a down payment and closing costs. Once you provide the lender with all the required documents and receive a pre-approval, the last thing you would want to do is alter any of the documents. This means that you should not change your bank account. If you do, you’ll have to go through the process all over again. That means you’d have to wait for another at least 60 days for seasoning. If you change your bank account after getting pre-approved, you could be getting yourself in trouble since your lender could require a new set of statements right before closing. To save you from all the trouble, avoid changing your bank account before and after getting a pre-approval at all costs.

Save yourselves the trouble of being denied mortgage loans or delaying your mortgage approval by avoiding all the mistakes discussed above until you’re through with closing.

MISTAKE #4: CHANGING YOUR BANK ACCOUNT.

When applying for a mortgage loan, you’re required to provide a lot of documents such as income

Work cited.

https://www.texasrealestate.com/members/posts/avoid-thesemistakes-between-loan-approval-and-closing/.

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