Why is real estate inventory so low

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're not selling because we'd lose too much. We can afford our loans, but we want a bigger place even if it's further out from the city. Solution: rent out current place for $X and then find a bigger home further out to rent for $X. When we're good and ready (and we think we won't lose so much), we'll sell.

But if you will only be ready to sell when the price for your current home improves, won't a bigger place cost more as well by that time?

Yes, but by then we'll have cash because we'll be continuously paying down our debt and anticipate being able to sell at a reasonable price. Meanwhile, we try to continue to sock away a little more $$ on top of what we already do.

To McLean poster:

I'm a new poster. I like your idea. I grew up in McLean myself. I want to buy a new house, further out. But...if I try to rent my house instead of trying to sell it and no one rents it, then what? I'll be renting a new place further out and paying for my mortgage.

[Anonymous]

PP - adjust your rental list price downward until someone wants to rent it. If you're getting a great deal on buying the bigger house, it shouldn't matter too much. If it gets uncomfortably lower than your mortgage, then you shouldn't move up.

[Anonymous]

(23:07 here)

Yes, we anticipate we can rent a bigger house (a much bigger house) for much less.

So we won't be "saving" any money per se. If our mortgage is $3000 a month, and we get $2000 rental income, then we'll just find a place farther out that's around $2,000 for us to rent for ourselves.

So we still pay $3000 total, except we get to live somewhere that is--for us--higher QOL.

[Anonymous]

Anonymous wrote:We've been looking for a house in the McLean/No. Arlington area for about 8 months, in the $1.25m range. Can't find anything we like. OP is right, inventory is low, and many people still think it's 2005 in their pricing. And NoVA is the land of the center hall colonial--if you're not into that, you're out of luck.

I disagree with that in N. Arlington, especially in your price range. For $1.25 million you could get new construction and most of that is that large, bungalow/Craftsman style with open floor plans. We have friends who bought a brand new house in Lee Heights (22207) for $1.25 million this summer and it is beautiful and certainly not a center hall colonial. There is another house in our neighborhood that is being built right now in that same bungalow style and it is $1.245 millon. Don't know about McLean, though, maybe that will amount not buy you new construction there. But, really prices have not come down much in N. Arlington - especially in 22207.

[Anonymous]

For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

[Anonymous]

Anonymous wrote:For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

This is so not true! Here are some listings in N. Arlington:

http://www.mcenearney.com/realestate#criteria=option%3Dsale%26search%3D22207%26type%3D%26adv%3D0%26bed%3D2%26bath%3D1%26minsp%3D1000000%26maxsp%3D2000000%26minrp%3D1000%26maxrp%3D2000%26minlp%3D400000%26maxlp%3D900000%26minls%3D21780%26maxls%3D87120%26subkey%3D0%26subval%3D%26oh%3D0%26pet%3D0%26comp%3D0%26newl%3D0%26sold%3D0%26lat%3D38.85%26lng%3D-77.3%26zoom%3D10%26page%3D1%26limit%3D10%26order%3Dpricelow%26view%3D0%26key%3D90085421774

http://www.mcenearney.com/realestate#criteria=option%3Dsale%26search%3D22201%26type%3D%26adv%3D0%26bed%3D2%26bath%3D1%26minsp%3D1000000%26maxsp%3D2000000%26minrp%3D1000%26maxrp%3D2000%26minlp%3D400000%26maxlp%3D900000%26minls%3D21780%26maxls%3D87120%26subkey%3D0%26subval%3D%26oh%3D0%26pet%3D0%26comp%3D0%26newl%3D0%26sold%3D0%26lat%3D38.85%26lng%3D-77.3%26zoom%3D10%26page%3D1%26limit%3D10%26order%3Dpricelow%26view%3D0%26key%3D90126005858

http://www.mcenearney.com/realestate#criteria=option%3Dsale%26search%3D22205%26type%3D%26adv%3D0%26bed%3D2%26bath%3D1%26minsp%3D1000000%26maxsp%3D2000000%26minrp%3D1000%26maxrp%3D2000%26minlp%3D400000%26maxlp%3D900000%26minls%3D21780%26maxls%3D87120%26subkey%3D0%26subval%3D%26oh%3D0%26pet%3D0%26comp%3D0%26newl%3D0%26sold%3D0%26lat%3D38.85%26lng%3D-77.3%26zoom%3D10%26page%3D1%26limit%3D10%26order%3Dpricelow%26view%3D0%26key%3D90132934759

http://www.mcenearney.com/realestate#criteria=option%3Dsale%26search%3D22205%26type%3D%26adv%3D0%26bed%3D2%26bath%3D1%26minsp%3D1000000%26maxsp%3D2000000%26minrp%3D1000%26maxrp%3D2000%26minlp%3D400000%26maxlp%3D900000%26minls%3D21780%26maxls%3D87120%26subkey%3D0%26subval%3D%26oh%3D0%26pet%3D0%26comp%3D0%26newl%3D0%26sold%3D0%26lat%3D38.85%26lng%3D-77.3%26zoom%3D10%26page%3D1%26limit%3D10%26order%3Dpricelow%26view%3D0%26key%3D90116627297

All at $1.2 million or below. There are more, too.

Sorry for the long links!

[Anonymous]

We have also looked in McLean and N. Arlington at that price range. No - you aren't getting the brand new homes on an acre of land at that price, but there are some very nice homes in that price range, that may require a little work, in nice neighborhoods. I see that there are homes that haven't moved in price at all, but there are a LOT of homes that were originally priced around $1.4 million that went for closer to $1.1 million. People are budging....

We currently own and would make some money on the sale of our home, but have decided that renting is a better option. It is in a desirable location and we don't think prices will be decreasing any time in the next 3 years. We have also been landlords before and don't think it is that big of an issue.

Of course, we are looking to buy and don't need the equity in our current home for a downpayment, which helps. I think renting out your home to rent out a bigger home makes some sense, but only if you are desperate for the bigger home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're not selling because we'd lose too much. We can afford our loans, but we want a bigger place even if it's further out from the city. Solution: rent out current place for $X and then find a bigger home further out to rent for $X. When we're good and ready (and we think we won't lose so much), we'll sell.

But if you will only be ready to sell when the price for your current home improves, won't a bigger place cost more as well by that time?

Yes, but by then we'll have cash because we'll be continuously paying down our debt and anticipate being able to sell at a reasonable price. Meanwhile, we try to continue to sock away a little more $$ on top of what we already do.

I think this is the key - if you rely only on appreciation of your home/depreciation of prospective homes, there will never (or rarely) be a good time to sell. You have to use the extra time to improve your financial position in other areas - savings, paying off other debts, etc. - to aid the home-buying process. For us, if we wait 2-3 years to move, we likely will have saved enough for a down-payment on a new place, and will have reduced our current mortgage enough so that a refinance will allow us to keep our place as a rental. But that will take a lot more effort than simply sitting back and saying "I hope the housing market improves" or, more unrealistically, "I hope my place increases in value while places we may want to buy decrease." You may as well stary rubbing antique lamps and hoping a genie pops out.

[Anonymous]

Anonymous wrote:For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

I agree! The poster who disagreed posted up listings that prove this point. The homes are not new construction.... maybe new additions, but definitely older homes. We viewed a couple of homes that look nice on the outside, but major renovations were needed inside (70's style bathrooms and kitchens) at the 1.25M house price. We're specifically looking for a contemporary home, and our N. Arlington realtor told us for that price range, it's harder to find contemporary. There were 3 contemporary homes in N. Arlington as of a couple months ago... contemporary structure, but very old looking inside. Realtor told us the homes we're looking for would go for > 1.5M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

I agree! The poster who disagreed posted up listings that prove this point. The homes are not new construction.... maybe new additions, but definitely older homes. We viewed a couple of homes that look nice on the outside, but major renovations were needed inside (70's style bathrooms and kitchens) at the 1.25M house price. We're specifically looking for a contemporary home, and our N. Arlington realtor told us for that price range, it's harder to find contemporary. There were 3 contemporary homes in N. Arlington as of a couple months ago... contemporary structure, but very old looking inside. Realtor told us the homes we're looking for would go for > 1.5M.

Sorry, I was the poster who posted the links before and they didn't work too well. Here they are from another site. All BRAND NEW construction in N. Arlington that is $1.2 million and under.

http://franklymls.com/AR6972427

http://franklymls.com/AR7163501

http://franklymls.com/AR7132237

http://franklymls.com/AR7183358

But yes, none of them are contemporary and that would be hard to find around here - it just isn't a popular style especially for new construction.

[Anonymous]

Maybe the folks in $1.25-$1.5 M houses just aren't moving up anymore? I can see the desire to move from a 500K box to a 1-1.5M home. But once you're in larger home, maybe with the economy the way it is, that 2.5M-3M next house isn't so tempting...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

I agree! The poster who disagreed posted up listings that prove this point. The homes are not new construction.... maybe new additions, but definitely older homes. We viewed a couple of homes that look nice on the outside, but major renovations were needed inside (70's style bathrooms and kitchens) at the 1.25M house price. We're specifically looking for a contemporary home, and our N. Arlington realtor told us for that price range, it's harder to find contemporary. There were 3 contemporary homes in N. Arlington as of a couple months ago... contemporary structure, but very old looking inside. Realtor told us the homes we're looking for would go for > 1.5M.

Sorry, I was the poster who posted the links before and they didn't work too well. Here they are from another site. All BRAND NEW construction in N. Arlington that is $1.2 million and under.

http://franklymls.com/AR6972427

http://franklymls.com/AR7163501

http://franklymls.com/AR7132237

http://franklymls.com/AR7183358

But yes, none of them are contemporary and that would be hard to find around here - it just isn't a popular style especially for new construction.

I still don't agree with you. Those are starting prices. Maybe you could get some upgrades built in, but usually things like decent carpet, extra lights and granite countertops add up to quite a bit. I think you could get a very nice existing home, truly. But I think trying stay under $1.25 million in McLean/No. Arlington in that price range is going to be almost impossible if you are limiting yourself to new construction unless you find something attached. You can definitely find a nice house, not even an older home that's been renovated, but it will not be brand new.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For $1.25 million in McLean or N. Arlington, you aren't getting anything new construction unless its a TH. May be able to find a contemporary though, but there aren't too many around.

Buyers don't want to sell when they are under water. They'd rather stay put unless they have to move. So there isn't going to be high inventory of people who can't wait to sell their house at a loss.

I agree! The poster who disagreed posted up listings that prove this point. The homes are not new construction.... maybe new additions, but definitely older homes. We viewed a couple of homes that look nice on the outside, but major renovations were needed inside (70's style bathrooms and kitchens) at the 1.25M house price. We're specifically looking for a contemporary home, and our N. Arlington realtor told us for that price range, it's harder to find contemporary. There were 3 contemporary homes in N. Arlington as of a couple months ago... contemporary structure, but very old looking inside. Realtor told us the homes we're looking for would go for > 1.5M.

Sorry, I was the poster who posted the links before and they didn't work too well. Here they are from another site. All BRAND NEW construction in N. Arlington that is $1.2 million and under.

http://franklymls.com/AR6972427

http://franklymls.com/AR7163501

http://franklymls.com/AR7132237

http://franklymls.com/AR7183358

But yes, none of them are contemporary and that would be hard to find around here - it just isn't a popular style especially for new construction.

I still don't agree with you. Those are starting prices. Maybe you could get some upgrades built in, but usually things like decent carpet, extra lights and granite countertops add up to quite a bit. I think you could get a very nice existing home, truly. But I think trying stay under $1.25 million in McLean/No. Arlington in that price range is going to be almost impossible if you are limiting yourself to new construction unless you find something attached. You can definitely find a nice house, not even an older home that's been renovated, but it will not be brand new.

We can agree to disagree, but the reason I keep harping on it was because the original person who may or may not be you said there was NO new construction except townhouses for under $1.25 million in N. Arlington and that is simply not true.

There are homes that are already complete that are selling for this price or under. Here are some.

http://franklymls.com/AR7143151

http://franklymls.com/AR7163500

http://franklymls.com/AR7163501

I agree that there may not be many and and the majority in that price range are going to be rebuilds or add-ons, but there are some.

[Anonymous]

I still don't agree with you. Those are starting prices. Maybe you could get some upgrades built in, but usually things like decent carpet, extra lights and granite countertops add up to quite a bit. I think you could get a very nice existing home, truly. But I think trying stay under $1.25 million in McLean/No. Arlington in that price range is going to be almost impossible if you are limiting yourself to new construction unless you find something attached. You can definitely find a nice house, not even an older home that's been renovated, but it will not be brand new.

np here. You are strange. You 'don't agree' with the PP who pasted actual links of actual new construction homes that are on the market right now and are not townhomes. You could touch them with your own hands, should you so desire to drive on over to N. 23rd Rd. What's not to 'agree' with? They're real! They're there!

Also, you sound more familiar with track home developments in places like Leesburg. The links PP sent us (thanks!) are to homes obviously built on spec. The buyer doesn't go to the Toll Bros. model home sales room and pick out a grade of carpet -- the small developer has already decided to install hardwoods by the time the buyer drives by. Granite is a given, and again, is already installed on spec without asking the opinion of the yet-unmet buyer.

[Anonymous]

Anonymous wrote:

I still don't agree with you. Those are starting prices. Maybe you could get some upgrades built in, but usually things like decent carpet, extra lights and granite countertops add up to quite a bit. I think you could get a very nice existing home, truly. But I think trying stay under $1.25 million in McLean/No. Arlington in that price range is going to be almost impossible if you are limiting yourself to new construction unless you find something attached. You can definitely find a nice house, not even an older home that's been renovated, but it will not be brand new.

np here. You are strange. You 'don't agree' with the PP who pasted actual links of actual new construction homes that are on the market right now and are not townhomes. You could touch them with your own hands, should you so desire to drive on over to N. 23rd Rd. What's not to 'agree' with? They're real! They're there!

Also, you sound more familiar with track home developments in places like Leesburg. The links PP sent us (thanks!) are to homes obviously built on spec. The buyer doesn't go to the Toll Bros. model home sales room and pick out a grade of carpet -- the small developer has already decided to install hardwoods by the time the buyer drives by. Granite is a given, and again, is already installed on spec without asking the opinion of the yet-unmet buyer.

Thanks PP. I was beginning to think there was something I was missing with buying a new house in Arlington. Granted I don't have $1.25 million to spend, but I do have a friend who just spent that much and I went to many open houses with her and the houses we looked at were new, in that price range, and completely finished. The one she did end up buying was $1.273 millon and was completely finished when she looked at it. I believe she did change out some kitchen cabinets, but they didn't charge her more for that. The fact is, even the places that aren't built yet are on the market now and that is the price they will still be when finished (if not lower).