Each week, “Just Sold Condos” spotlights condos in Arlington that have sold over the previous week. The market summary is crafted by Rick Bosl, the Arlington Condo Expert, founder of ArlingtonCondo.com, and an agent with KW Metro Center. Contact Rick and make your next move the right move.
Welcome to Just Sold Condos in Arlington!
Last week, August 19-25, we had 30 condos and co-ops that went to settlement, ranging in price from $144,000 for a studio at River Place to $1,550,000 for a 3 BR/2 BA unit at Memorial Overlook. The median price was $516,500 and the median days on the market were 13 days.
How are buyers paying for their condos and co-ops? Well, the vast majority of the buyers used conventional financing (21 out of 30) and the number two method was cash, which was used in 7 out of the 30 deals that closed. Show me the money!
Year to date so far shows 828 condo and co-op sales in Arlington. What was the financing breakdown?
- 275 used cash
- 463 used conventional financing
- 15 used FHA loans
- 65 used VA loans
- 10 used other financing
The buyers that used cash for the 275 purchases paid $162,660,202. That’s not pocket change! Where were the 275 cash purchases? Breaking out by zip code we have:
- 22209 — 78 transactions
- 22201 — 62 transactions
- 22203 — 54 transactions
- 22204 — 32 transactions
- 22202 — 20 transactions
- 22206 — 20 transactions
- 22207 — 7 transactions
Any notable buildings with a lot of cash transactions? Yes.
- River Place — 78. This is not surprising since there are only 2 or 3 lenders that even make loans at River Place. Why so few? Because it is on a land lease that ends in 2052. You can’t even get a 30 year loan there anymore.
- Jefferson — 26. The Jefferson is also a unique place. It is the only 55+ condo in Arlington. The prices are low, but there is a mandatory fee, on top of the condo fee, of several thousand dollars PER MONTH.
- Turnberry Tower — 10. The average price of the 10 cash deals was $2.3M. If someone asks you to show them the money, just point to Turnberry Tower.
- Waterview — 8. Just down the street from Turnberry at the foot of the Key Bridge is another luxury building, the Waterview. The average price of the 8 cash deals was $1.28M.
Other notable building/complexes with cash deals are :
- Fairlington — 11
- West Village of Shirlington — 8
- The Carlton — 7
- Liberty Center — 7
- Colonial Village — 6
For a complete list of what sold last week, visit ArlingtonCondo.com Just Sold Condos page.
What Didn’t Sell?
What didn’t bring in any cash last week were 8 condos that didn’t sell and were removed from the market. Four were withdrawn, 1 expired, and 3 cancelled. When a listing is removed, it can have one of three status’:
- Expired — The listing term has reached its end and the listing agreement is over.
- Cancelled — The listing term hasn’t reached its end, but the seller decided to cancel the agreement with the agent.
- Withdrawn — There is still a listing agreement in place but the seller has decided to take it off the market. A number of listings will be withdrawn in December around the holidays and then put back on the market a few months later.
For a complete list of what didn’t sell last week, visit ArlingtonCondo.com Just Expired Condos page.
The Smart Buyer’s Guide to Navigating Mortgage Choices
Not everyone is fortunate enough to be able to pay cash for their home. Most buyers will finance the purchase. With a variety of mortgage loans available, knowing which one suits your needs can be overwhelming. This guide will help you understand the main types of mortgages, offering clear insights into the pros and cons of each, and who they’re best suited for.
1. Conventional Loans
Conventional loans are the most common type of mortgage. They are not insured by a government agency and are typically offered by private lenders, like banks, credit unions, or mortgage companies.
Conventional loans follow the guidelines set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy and guarantee mortgages. They usually require a credit score of at least 680 (some lenders will go as low as 620) and a down payment of 5, 10, or 20%.
A higher credit score can lead to more favorable interest rates. Even a small reduction of 0.25% to 0.5% in your interest rate can result in significant savings over the life of a loan. For instance, consider a 30-year fixed-rate loan of $500,000 with a 6.5% interest rate equating to a $3,160 monthly payment. Lowering your interest rate by just 0.25% could save you $81 per month or over $29,000 over the term of the loan, while a 0.5% reduction could save you $162 per month or over $58,00 over the length of the loan. Optimize your credit score for better financial outcomes.
Pros and Cons
One major advantage of conventional loans is their flexibility. Without the constraints of government regulations, lenders can offer various terms and conditions to fit your financial situation. However, the downside is the necessity for good credit and some down payment. It is a myth that you need 20% down, but that will often get you the best rate.
Conventional loans are ideal for buyers with a stable income and a strong credit history. If you can afford a larger down payment, this loan type will likely offer the best interest rates and terms.
The Difference Between Conventional Loans and Government Loans
Government loans come with the assurance of federal backing, providing lenders with protection if a borrower defaults on their mortgage. This security empowers lenders to offer financing to individuals who might not qualify for conventional loans. With government-backed loans, borrowers benefit from more flexible terms, such as smaller or no down payments and lower interest rates for those who meet the criteria. By choosing these options, borrowers can enjoy the advantages of accessible lending and favorable conditions.
The most prevalent government-backed loans for borrowers are FHA loans, favored by first-time home buyers; VA loans, designed for military service members and veterans; and USDA loans, aimed at low-income buyers in rural areas.
To see the complete list, including FHA, VA, USDA, Portfolio, DSCR loans and more, visit ArlingtonCondo.com The Smart Buyers Guide to Navigating Mortgage Choices page.
Please note: While ArlingtonCondo.com provides this information for the community, they may not be the listing agent of these homes. Equal Housing Opportunity.
