bostonbubble.com

[Guest]

Any ideas on how properties in Arlington are selling? We are intrested in buying a 3 bedroom. I have not done much research there, but heard its a great area. Are the asking prices overinflated?
Any sort of info and help is greatly appreciated.
Thanks

[Hard Rain]

You can start here...

http://paper-money.blogspot.com/2008/05/arlington-artifice-march-2008.html?ref=bostonbubble.com

[samz]

I'd like to eventually buy in Arlington myself. I've been monitoring the situation there for about a year, and I'm very frustrated and discouraged. Instead of prices coming down, what I'm seeing is a buyer-seller stalemate. There's very little for sale in Arlington, and what is on the market is crappy and expensive.

My plan is to wait. Ultimately, I think buyers will win the stalemate because they don't *need* to buy -- whereas there will always be sellers who need to sell. The only thing that worries me is that the stalemate could drag on for years: nominal prices stay high, while the real values are eroded slowly by inflation. What sucks about this scenario is that it takes so long for the price correction to occur that you can't buy in without losing money (at least initially).

Also: here are some useful resources for Arlington:

Mass Land Records -- you can look up properties by address to find out how totally screwed the current owners are (or not, which is good news):

http://www.masslandrecords.com

Town of Arlington -- has similar information, but will also tell you the last time the property was sold and for how much.

http://arlserver.town.arlington.ma.us/Property/

Whatever you do, don't break down and pay a lot of money for something mediocre. A nice house costs, let's say, $250K to build, so a $500K house is roughly 50% supply/demand pressure. The only hope for price sanity in towns like Arlington, and all over the Boston area, is for buyers to say no.

[Teavo]

Arlington is a nice place. But you don't have to buy to live there. Just rent.

That's what I do, and I'm saving a lot of money compared to buying, and I live in a nicer place for less money and less hassle, all the while using the money I save to build up a nest egg to buy when prices finally return to sanity.

Sanity hasn't arrived yet, but it's on its way. It has to pass through heavy traffic in Denialville and Stubborntown first though.

I can wait as long as it takes. Renting saves me money every month, so what's the hurry? There is none. If there's a stalemate here, then I will win because I can afford - literally - to be as patient as it requires. And I will not buy until it makes financial sense to do so, whether in Arlington or anywhere else. At current prices, buying does not make financial sense.

But prices are falling.

If you like Arlington, just rent a place there for a while and just keep your eye on the housing market (not just in Arlington!). When prices have fallen more, then it's your time to buy (my estimate is 1-2 years). Be patient, and save your money. Your bank account will thank you.