We asked Mark Ferguson, a highly experienced mortgage lender, and Alair Market Partner, to share his thoughts on the current Arlington real estate situation.
Arlington Interest Rates
“Interest rates have stayed higher for a while now, with moderate reductions from time to time,” Mark said. “However, the lows to highs are much smaller (6.5-7.5%) rather than big swings (3-7.5%).”
As you look at interest rate charts, remember that interest rates are cyclical and will come down. There is no certainty of when rates will fall and by how much. Rates might not return to the all-time low they were at the height of the pandemic in 2021.
Arlington Home Prices: A Steady Ascent
The DC-Metro area is currently facing a shortage of available homes and a steady influx of new homebuyers as people relocate to the area for job opportunities. This situation contributes to price stability in the Arlington real estate market.
While interest rates are likely to go down, Mark is confident that home prices in Arlington will not. “With continued demand for housing,” Mark said, “Arlington home prices will not depreciate; they may just appreciate at a slower pace.”
Arlington Real Estate: The Opportunity at Hand
So, is it a great time to buy or build with the current market conditions? The short answer is yes!
“If a client can afford it now (comfortably),” said Mark, “the smart move is to buy/build at this price level and take advantage of a refinance when it makes sense.”
The combination of high interest rates and increasing home prices might make you question whether now is a good time to enter the Arlington real estate market. But you cannot fail to recognize the cyclical nature of interest rates and the resilience of the Arlington market.
If you can comfortably afford to purchase or build a custom home, now is a great time to do so, with plans to refinance later as Arlington home prices continue to increase. But do not just take our – or Mark’s word for it – while we value his opinion, we advise all of our clients to talk with a financial advisor and mortgage lender about their personal situation before deciding to build their home with us.