As the table shows, average price per square foot (PPSF) for single family home sales in Arlington was down 3.1% year over year. Average livable space per home sold was 1.4% higher, which we would expect to make the average PPSF figure lower, all else equal. Average days on the market (DOM) shot up from 17.9 to 32.8. The data suggests a weakening housing market.
As of April 4th there are only 10 single-family homes on the market in Arlington, with average DOM of 48.5. Over the last 10 months the average DOM of single-family homes that sold was 22.8. Properties appear to be sitting on the market longer, but there are fewer of them. There are only 14 condominiums and 4 multi-family homes on the market.
A typical interest rate for a 30-year fixed rate mortgage in Massachusetts is currently 6.50%. This is down a little from the short-term November peak, but significantly higher than levels of the past five years.
Due to the rapid rise in mortgage rates last year, some homeowners are reluctant to sell their homes now. Why? Because selling their homes would require buying a new home, which would mean taking out a new mortgage at a higher interest rate than the old mortgage that they’d be paying off. Their cost of living might rise even if their new home cost a little less than the sale proceeds of their old one. The reluctance of some owners to sell is keeping inventory low, which counteracts downward pressure on prices.
Sold in Past Year (Single, Condo, Multi):