Ask Eli

Ask Eli: My reaction to the Missing Middle lawsuit ruling

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: What do you think about the ruling against Missing Middle? 

Answer: It’s a joke amongst realtors that if you want to do some business, go on vacation, and your phone will start ringing. I guess the same goes for me getting the Breaking News that Missing Middle/EHO has been overturned by Judge Shell as I head out of town. 

So instead of my planned article comparing our local/regional housing market to the rest of the country, I’m going to share my first thoughts on Missing Middle getting thrown out while I wait for my flight. 

Good Riddance Missing Middle (v1.0) 

I support the idea of bringing actual Missing Middle housing to Arlington by creating broader, more flexible zoning policy so the market can supply the type of housing we lack and the type of housing that’s in demand (3-4BR homes with ~1,500-3,000 sq. ft. and some yard space), but I did not support the version of Missing Middle/EHO in the recently overturned policy. 

Speaking purely from a housing market perspective (leaving aside my personal concerns as an Arlingtonian), I had two main issues with it: 

  1. It didn’t allow for the construction of the type/size of homes that I think are most in demand and missing from Arlington. It also didn’t properly incentivize construction of the type/size of homes allowed in the v1.0 policy that was closest to what was most in demand and missing from the Arlington market (duplex and three townhouse developments). 
  2. The policy did not properly incentivize the type/size of housing that most aligned to demand and missing supply so naturally, builders were incentivized for more density (4-6 unit multi-family units) and the result was the majority of units applied for/approved under Missing Middle were of the size and type that we currently have the most supply of… 1-2BR condos and apartments, which I wrote in Nov. 2023 meant that Missing Middle was not achieving its goals (and a failed policy) 

We got v1.0 wrong. I say v1.0 (my label, not the County’s) because I have no doubt our community and County Board will continue to work on v2.0 of Missing Middle/EHO to develop a more thoughtful policy. 

How We Can Get v2.0 Right 

There are tons of people more qualified to offer opinions on how to do Missing Middle right, but I’ll offer some here: 

  • Start with Honesty: Be honest about what we’re trying to achieve. Is it making Arlington housing more affordable? Then let’s talk about housing affordability and Affordable Housing, not Missing Middle. Is it about making North Arlington schools and neighborhoods more socioeconomically diverse? Then let’s have that conversation, not Missing Middle. But if the goal is allowing the market to build housing, that’s lacking in supply and high in demand, then let’s discuss a better implementation of Missing Middle housing. 
  • Build Actual Missing Middle: The v1.0 policy brought us too much of what we already had in high supply and not enough of what was actually missing from our market. Set a clear intention to bring certain types/sizes of housing to the market where there are currently gaps and work backwards to build a policy for the intended outcome. 
  • Engage the Builder Community: I can’t recall where I read it, but one of the most shocking things I learned was that the County was intentional about not giving the builder community (and those in similar fields, like local architects/engineers) a seat at the table in planning because they didn’t want to give the impression they were doing this to line builders’ pockets (though plenty accused the County of it anyway). The County must understand how their policy will be implemented by builders and work together with them to create a policy that properly incentivizes the market to build the desired product. 
  • Vary Zoning Policy by Location: Allow for higher density and smaller units (multi-family) primarily along high-traffic corridors like Glebe, George Mason, Carlin Springs, etc where redevelopment of old, obsolete housing is slower under the current single-family zoning. Strongly consider allowing/encouraging assemblages of adjacent lots along these corridors to promote a broader range of development (townhouses/duplex). Taper/adjust the zoning code to keep multi-family development where it makes sense (in Metro/walkable/commuter corridors) and do not allow multi-family style development inside neighborhoods. 
  • Increase Parking Requirements: The v1.0 policy required just .5 or 1 parking space per unit and was going to result in a problematic number of cars being parked on neighborhood streets; many of those streets were already near or at capacity for parked cars. Create policy that is realistic about the numbers of cars that people will have in new Missing Middle housing and make sure there’s space for most/all on site. 

This is far from an exhaustive list of priorities to consider in the next iteration of Missing Middle/EHO and doesn’t include significant ones, like infrastructure and environmental concerns. 

My Big Question Is… 

…What happens to the Missing Middle that has been approved or is under construction? There is no longer a zoning policy in place to for the County to issue a Certificate of Occupancy under and even if the County says they will honor approved permits, I imagine the neighbors will file suit and either prevent altogether or endlessly tie up the completion of a project in court. Get your popcorn ready… 

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460. 

Ask Eli: Fed cut rates, mortgage rates went… up?

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: How much did mortgage rates drop after the fed cut rates last week?

Answer:

The Fed Cut Rates and Mortgage Rates… Went Up?

Last week, the Federal Reserve cut the fed funds rate by 0.5%, more than the 0.25% some expected. Great news for mortgage rates, right? Wrong.

Despite the large rate cut by the Fed, mortgage rates actually increased each of the next two days. Why?

To understand this, you need to understand that mortgage rates are not directly tied to the fed funds rate but are influenced by something else: the 10-year Treasury yield.

The Fed Funds Rate vs. Mortgage Rates

The fed funds rate is the interest rate banks charge each other for overnight loans. The Federal Reserve adjusts this rate to control inflation and guide economic growth. When they cut the rate, it makes borrowing cheaper in the short term, encouraging spending and investment.

However, long-term interest rates, like mortgage rates, don’t directly follow the fed funds rate. Instead, they are more closely linked to the yield on the 10-year Treasury note. The 10-year Treasury is market driven, as opposed to the fed fund rate controlled by the Federal Reserve, and its yield reflects investor expectations about future inflation, economic growth, and overall risk in the economy.

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Ask Eli: Save on your condo/HOA budget by reviewing the master insurance

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: We are finalizing our 2025 condo budget. Do you have any advice for ways to save money?

Answer: As a former Condo Board Treasurer, I feel the pain that this time of year brings, so I’m happy to offer some advice that helped me find savings while I oversaw the budget and has helped other Associations do the same… review your Master Insurance Policy.

I know, it’s not the most exciting answer, but your insurance policy is likely a top three expense every year and if you haven’t reviewed it lately, there’s a good chance you can cut the cost by 10% or more and probably improve your coverage at the same time.

I’m not an expert in insurance so, I asked Andrew Schlaffer, President of ACO Insurance to provide some details on what Boards should look for when they do a review of their Master Policy. If you’d like to discuss a review with Andrew directly, you can reach him at 703-595-9760 or [email protected]. Take it away Andrew…

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Ask Eli: Cost of a new home in Northern Virginia

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: How has the single-family new construction market performed in Northern Virginia lately?

Answer: Over the past five years, from Q2 2019 to Q2 2024, the average price of a single-family detached (SFD) home in Northern Virginia has increased by a whopping 53.2%, from $691,000 to $1,059,000. The cost of a new SFD home in Northern Virginia has increased by a similar amount, growing by 57.8% to-date since 2020, from $1,315,000 to $2,074,000. That’s right, as of 2024, the average cost of a new SFD home in Northern Virginia is over $2M!

This week, let’s take a deeper dive into the cost of new SFD homes over the past five years around Northern Virginia. A few quick notes about the data:

  • The data is limited to what has been entered into the MLS (Realtor database of record) and not all new construction makes it into the MLS, but the majority does and gives us an accurate reading of the market
  • Northern Virginia totals include the counties of Arlington, Fairfax, Loudoun, and Prince William plus the cities of Alexandria, Falls Church, Fairfax, and Manassas
  • In the tables below, Alexandria, Falls Church, Fairfax, and Manassas refer to the county portions, not the intendant cities (the data sets are too small to show them separately)
Price Graph

Highlights of New Construction Data

  • The biggest price jump took place from 2020 to 2021, with new SFD home prices increasing by an average of 20% in just one year
  • With average prices of nearly $3.5M, McLean and Great Falls command the highest prices in the region
  • 2024 is the first year of Fairfax County having a higher average price for new SFD homes than Arlington County, but the year is not finished, and the lead could flip back to Arlington before the year is up
  • Ashburn, Arlington, and Dumfries pack their lots with the most house per acre and Nokesville offers the most land per finished sq. ft. of home
  • The biggest homes get built in McLean, averaging over 7,600 sq. ft., six bedrooms, and six full bathrooms
  • From 2023 to 2024 the average new SFD home in Northern Virginia costs buyer $355 sq. ft. (total finished sq. ft.)
Price Table
Data Summary

If you are considering selling your home to a builder, here’s an article I wrote last year with six tips for selling your home to a builder.

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460. 

Ask Eli: Learn about new buyer commission rules in person

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

You’ve seen the headlines and likely read a range of varying/conflicting information about the new laws affecting buyers and buyer agent commission. I will spend time discussing the new laws and answering your questions at our Ask Eli Home Buyer Workshop next week at the Arlington Central Library on Wednesday, September 11. Food and drinks will be provided!

The workshop is a free and will cover: 

  • New laws affecting buyer agent representation and commission
  • How to use data and strategy to maximize your home purchase
  • How to use market trends to your advantage
  • The latest on interest rates and mortgage programs/products
  • Common mistakes to avoid and some tips for success 

Who is it for? 

  • Anyone curious about the agent commission changes and how they could impact you 
  • Any buyer type from first-time buyer to experienced buyers 
  • Ready to purchase now or planning 18-24 months out 
  • Home buyers in Northern VA, DC, or the Maryland Suburbs 
  • You or anybody you know who would benefit 

Where and When? 

  • Wednesday September 11 from 6-7:30 p.m.
  • Arlington Central Library (1015 N Quincy Street), Bluemont Room

Registration is now open, and space is limited. Click the graphic below to RSVP. Bring your appetite and your home buying questions! I’d love to see you there. Feel free to email me at [email protected] with any questions about the event. 

Home Buyer Workshop

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460. 

Ask Eli: What do my six-year-old son and I have in common?

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater DC Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: What do my six-year-old son and I have in common?

Answer: Yesterday was our first day of school!

Yesterday at 8:30 a.m., Jackson climbed aboard the bus for his first day of 1st grade at Barcroft Elementary and yesterday at 4 p.m. I walked through the doors of George Mason’s Arlington Campus for my first day of class for my Master’s in Real Estate Development!

First Day

I’m still planning to be a local real estate agent for Arlington and the surrounding Northern Virginia/D.C. Metro communities (and your weekly ARLnow real estate columnist!), but I’ve always wanted to expand and deepen my real estate knowledge and the George Mason MRED offers a fantastic master’s program for regional residential and commercial real estate. I’m excited to broaden and deepen the range of topics I write about in my weekly Ask Eli column and for the new expertise and services I’ll be able to offer clients.

It’s been 15+ years since I graduated from the University of Maryland and took my last test, so wish me luck in getting back into the habit of homework assignments, group projects, and pop quizzes!

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Ask Eli: Arlington rental market 2024 review

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater DC Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: How has the rental market performed so far in 2024?

Answer: 

Rent vs Buy — Nowhere to Hide 

The unfortunate truth these days is that if you need housing, there’s nowhere to find safety. Prices on single-family homes and condos are up significantly, higher interest rates have pushed monthly payments to uncomfortable levels, and, as you’ll see below, the rental market is competitive and expensive.

Over the past five years, the average rent price in Arlington is up 21.6% across all property types and 27.1% for single-family home rentals. So far in 2024, about half of homes listed for rent are rented within the first ten days on market and tenants have little room for negotiation, with the average property renting for just .2% less than the original asking price. Properties that are rented within the first ten days on market (about half) are going for an average of 1.4% above the asking price.

About the Data

The data below is rental data from the MLS in Arlington over the last five years. Note that very few commercial apartment buildings list in the MLS so this data is limited to non-commercially owned rentals (for apartments, that is mostly individually owned condos).

Further, it’s difficult to say what percentage of non-commercially owned properties go through the MLS for rent but I would guess that it’s about half of rented apartments (condos), but likely a majority if detached and townhouse properties. Despite the limited data set, we still have more than enough information available through the MLS to generate outputs that represent the true rental market.

Highlights and Data Table 

Here are some highlights from the data table (keep in mind that 2020-2023 includes 12 months of data, but 2024 is just 7.5 months of data):

  • The average rent for an apartment (condo) is up 3.1% this year compared to last and the average rent for a single-family home and a townhouse/duplex is up 8.7% and 6.2%, respectively
  • Average rental prices in Arlington are up 21.6% over the past five years
  • The average rent price of an apartment (condo) has increased 17% in the past five years, a bit higher than the 14.3% increase to the average cost of buying a condo during that same period
  • The average rent price of a single-family home has increased 27.1% in the past five years, a bit higher than the 24.9% increase to the average cost of buying a single-family home during that same period
  • The 2024 rental market, across all property types, has been more competitive than it’s been during any other year going back to 2020, with properties renting at prices closer (or above) to the original asking price and properties accepting a tenant faster than any previous years. Note that these numbers might drop to be more in line with previous years once the slower months of 2024 (fall/holidays) are included.
  • Roughly 50% of properties accept a tenant within ten days of being listed for rent
Rental Chart

For further questions about the Northern Virginia rental market, Eli Residential Group’s rental specialist, Carolanne Korolowicz is available at [email protected].

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Ask Eli: Buyer Workshop on September 11

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater DC Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

On Wednesday, September 11 I’ll be hosting another Ask Eli Home Buyer Workshop with my business partner Jean Ropp and local Loan Officer, Matt Ropp, with Atlantic Coast Mortgage. Food and drinks will be provided!

The workshop is free and will cover:

  • How to use data and strategy to maximize your home purchase
  • How to use market trends to your advantage
  • The latest on interest rates and mortgage programs/products
  • Common mistakes to avoid and some tips for success

Who is it for?

  • Any buyer type from first-time buyer to experienced buyers
  • Ready to purchase now or planning 18-24 months out
  • Home buyers in Northern Virginia, D.C., or the Maryland Suburbs
  • You or anybody you know who would benefit

Where and When?

  • Wednesday, September 11 from 6-7:30 p.m.
  • Arlington Central Library (1015 N Quincy St.), Bluemont Room

Registration is now open and space is limited. Click the graphic below to RSVP. Bring your appetite and your home buying questions! I’d love to see you there.

Feel free to email me at [email protected] with any questions about the event.

Buyer Workshop

If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].

If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube on the Eli Residential channel.

Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.

Ask Eli: Expected real estate market conditions

By Sponsor

This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater DC Metro area, you can reach him directly at Eli@EliResidential.com.

Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.

Question: What do you expect to see from the real estate market for the remainder of the year?

Answer: Following a strong first half for single-family homes and an exceptionally strong first half for condos, let’s take a look at what historical trends tell us we can expect from the local real estate market for the rest of the year. Having a strong understanding of weekly and monthly fluctuations in market conditions can give buyers and sellers a competitive advantage over the rest of the market and prevent costly mistakes based on inaccurate assumptions.

While the specific data/conditions vary year-to-year based on things like inventory levels, interest rates, and economic conditions, we can rely on trends as we move through the seasons and hit certain transition points (usually marked by major holidays) throughout the year. The charts below are made up of sales in Arlington since 2013 (excluding 2020 because of COVID lockdowns) and the trends can generally be applied to markets in the greater D.C. area, not just Arlington.

Inventory Will Spike Soon, Then Fall Sharply

The summer months are defined by a shift in demand (lower) and listing volume (lower) relative to the peak spring activity. A lot of homeowners wait to put their home on market until after Labor Day, the unofficial end of summer, so we usually see listing activity spike the week following Labor Day Weekend; producing roughly double the volume of listings in the following week or two relative to the preceding and proceeding weeks.

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Ask Eli: Huge condo appreciation — 2024 mid-year review

By Sponsor

This regularly scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Video summaries of some articles can be found on YouTube on the Eli Residential channel. Enjoy!

Question: How has the Arlington condo market performed in the first half of 2024?

Answer: The Arlington condo market had a historically strong first half performance this year, with average prices up a whopping 13.6% in the first half of 2024 compared to the first half of 2023.

A Wave of Demand Led to Remarkable Appreciation

Coming into the year, there were strong signs of upward price pressure in the condo market with inventory levels well below the 10-year average and significant increases in key demand metrics (% of condos selling within ten days and % of sale price to original asking price). We also had pent-up demand from would-be condo buyers in 2023, who held off on a purchase waiting/hoping for rates to drop, combined with the normal cycle of 2024 condo buyers to create strong demand in the first half of the year.

For a market that is generally flat/stable, even appreciation of 3-5% in a year is notable on a historical level, making double-digit growth is remarkable. For perspective, by most measures, we saw more appreciation in the first half of this year than we saw in the 12-16 months following the Amazon HQ2 announcement.

How the Data is Organized

For my mid-year reviews, I like to compare the first half of the year to the same period (first half) of prior years, rather than comparing the first half of the current year to the full year in prior years. We tend to see a much stronger market (higher demand, more competition) in the first half of the year than the second half, so I feel like this approach gives us a more apples-to-apples comparison.

It’s also important to note that the data I use is based on homes that went under contract in the first half of the year because it’s more reflective of actual buying activity during that period; as opposed to looking at homes that closed in the first half of the year, but may have gone under contract many months prior during different market conditions.

Highlights of a Strong Condo Market

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Ask Eli: 2024 mid-year single-family market review

By Sponsor

This regularly scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Video summaries of some articles can be found on YouTube on the Eli Residential channel. Enjoy!

Question: How has the Arlington housing market performed in the first half of 2024?

Answer: Sometimes the market surprises you (read: me) and the first half of 2024 was one of those times. After a relatively tame 2023 and prolonged high interest rates, I expected to see fairly stable pricing until rates dropped. By the second week of January, it was clear that buyers had other ideas, and I saw most homes in Northern Virginia selling for 5-10% more than they had in 2023 with intense competition.

How the Data is Organized

For my mid-year reviews, I like to compare the first half of the year to the same period (first half) of prior years, rather than comparing the first half of the current year to the full year in prior years. We tend to see a much stronger market (higher demand, more competition) in the first half of the year than the second half, so I feel like this approach gives us a more apples-to-apples comparison.

It’s also important to note that the data I use is based on homes that went under contract in the first half of the year because it’s more reflective of actual buying activity during that period; as opposed to looking at homes that closed in the first half of the year, but may have gone under contract many months prior during different market conditions.

Strong Price Growth and Competition

Across all property types, average home prices in Arlington increased by 6.8% in the first half of 2024 compared to the first half of 2023.

Let’s look at the performance of Arlington’s single-family home (SFH) market in the first half of 2024 compared to the previous four years:

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Ask Eli: Buyer agent commission changes coming next month

By Sponsor

This regularly scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Video summaries of some articles can be found on YouTube on the Eli Residential channel. Enjoy!

Question: What is the status of the Realtor commission lawsuits and the resulting changes?

Answer:

Lawsuit/Settlement Background

The residential real estate industry, nationwide, is in the process of transitioning to a new era of how Realtor commissions are structured, specifically the model for buyer agent compensation. The changes stem from the industry-wide settlement of multiple class action lawsuits and years of pressure from the DOJ, which I explained in depth in this article.

At the heart of the settlement is an issue with the model for buyer agent compensation in most real estate transactions. For decades, when a seller signed a listing agreement with a real estate agent to sell their home, it was common practice for them to agree to a fee that would be divided (usually evenly) between their agent and the agent who represented the buyer. The fee for the buyer’s agent gets entered into the MLS (database of record used by agents) and is enforceable by the MLS and local Realtor Associations.

No More Offers of Compensation for Buyer Agents

The judges in the class action lawsuits and the DOJ believe this practice was anti-competitive so a settlement was reached with the Realtor industry to decouple the seller agent and buyer agent commissions by preventing the advertising of offers of compensation to buyer agents via the MLS.

The settlement is explicit in eliminating offers of compensation to buyer agents in the MLS, but there is legal debate over whether the settlement prevents offers of buyer agent compensation off the MLS — the DOJ and many attorneys argue that the intent of the settlement is to eliminate all offers of compensation to buyer agent, via any channel not just the MLS.

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