Live on the Red Line - Real Estate

Open House this Sunday! From 12 to 2 pm...visit us @ 304 Q St NW...

Visit our Open House this Sunday from 12-2 pm. 304 Q St NW, Washington, DC...3 Boutique luxury residences remaining - Two-Bedroom Units in the newly renovated Queue Condominium building

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Two bedroom units now available in the new Queue Condominium building. Boutique luxury residences in the heart of DC. Units feature high ceilings, gourmet kitchen, SS appliances, exposed brick walls, pre-wired cable and internet in all rooms, bathrooms w/custom tile, hardwood floors, in-unit washer/dryers, plus more features within. Walk to metro and located on dedicated bike lane. Ask about FHA Financing, DC Down Payment Assistance, and Closing Cost help!! These 2 bedroom/1 bath units are still available: Unit #3-2nd flr Unit #2-1st flr

Modern newly renov 1 bdrm/1 master bath, walk to metro, pets welcome

This massive one bedroom condo occupies approx 900 sq ft of the ground level floor of an historic red-brick row house. Available to move-in on May 15th (for one or two- year lease). $1595 per month.

DETAILS AND FEATURES:

Great lighting, with windows around 3 sides of the unit
Amazing modern kitchen with granite counters, and new appliances [great for cooking and dinner parties, open to the living room]
Four large closets for clothes and storage, a fifth closet with washer/dryer
Luxurious master bathroom with a huge Italian marble floors, tiled walk-in shower (large enough for 2 people) and heated floors
Adjustable spot and recessed lighting throughout
A/C & Heating units
Pergo flooring in the kitchen
Plush carpeting
Pets welcome


ABOUT THE NEIGHBORHOOD:

Very easy street parking with permit.
1.5 blocks to Giant supermarket.
2 blocks to Shaw metro stop [Green/Yellow].
1 block to bus stops [70/71/78/G2]
Restaurants and bars within easy walking distance.
15-minute walk to Chinatown, 10-minute walk to 930 Club and U Street action, 4-minute walk to Vegetate and Be Bar.

Contact me with additional questions or to schedule a viewing appointment.

View pictures at http://www.flickr.com/photos/22982988@N08/sets/72157606543101187/

Location: 6th St NW (cross street is Q St NW)

A Decade of Dramatic Real Estate Developments

At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.

What a difference a decade makes.

“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.”

Source: NAR

Home Affordable Foreclosure Alternatives Program (HAFA)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA), part of the  Home Affordable Modification Program (HAMP).

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies only to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

Learn more about HAFA

Government Forms and Guidelines (PDF)

NAR HAFA Program FAQ  (PDF)

“First Look Initiative” Gives Homebuyers a Competitive Edge on Foreclosed Properties

Fannie Mae has introduced a program that now gives homeowners a leg up when bidding on foreclosed properties in its portfolio.

In the past year, there’s been stiff competition on the lower end of the DC housing market, mainly fueled by bank-owned properties. These homes are often located in desirable neighborhoods but are either shells or need work to become livable. They are usually priced aggressively to sell fast. As such, the homes garner a lot of interest from investors, and it’s not unusual for these listings to receive several contracts within the first few days of being listed. In the bidding wars that ensue, traditional home purchase contracts with finance and appraisal contingencies lose out to all-cash, no-contingency contracts from investors. Often, a bank will go with cash buyers even at a significantly lower purchase price because the chances of the contract falling through are far less and the required closing period is shorter. This trend has been the cause of major frustration among homebuyers.

Fannie Mae’s new “First Look” initiative is one of several that help provide some balance to the homebuying process. As part of the Neighborhood Stabilization Program (NSP), the initiative is targeted at owner-occupants and buyers using public funds.“First Look provides owner-occupants and public entities that are committed to the community get an early opportunity to purchase one of Fannie Mae’s Real Estate Owned properties,” says Terry Edwards, Executive Vice President for Credit Portfolio Management at Fannie Mae. “As a result, we believe First Look will help us make progress toward stabilizing neighborhoods and building stronger communities in this difficult market.”

The First Look initiative only allows offers from owner-occupants and buyers using public funds to be considered for the first 15 days that a Fannie Mae-owned home is listed. In investor-saturated markets such as DC, this greatly reduces the competition when bidding for a home, giving homebuyers a better chance at getting their offer accepted. Buyers must act fast though, because after the initial 15 days of being listed, offers from investors may be considered.

In addition to the First Look initiative, buyers using NSP funds may also qualify for several other benefits, including deposit waiver, ability to renegotiate the sales contract after an NSP-required appraisal, and extra time (up to 45 days) for closing. A list of Fannie Mae-owned properties for sale in the DC area can be found here.

by Tim Brown

http://dc.urbanturf.com/articles/blog/fannie_maes_first_look_initiative_gives_homebuyers_a_competitive_edge/1630

Economists' Commentary: Real Estate Forecast for 2010

In all, 4.4 million Americans look to take advantage of the home buyer tax credit before it expires by the middle of next year. From the enactment in February of this year through October, NAR estimates 1.8 million households would have qualified to claim the first-time home buyer tax credit. Now with the tax credit deadline extended till the end of June 2010 (for closings, with contracts signed by the end of April, 2010) and also available to many move-up buyers, an additional 2.6 million families would likely claim the home buyer tax credit.

The expected boost to existing home sales by more than 20 percent in the first half of 2010 from comparable period one year before will sufficiently trim away inventory such that home values will begin to show increases by the middle of next year in many parts of the country. The median existing home price could rise by 2 to 4 percent in 2010. New home sales could jump by nearly 50 percent, though from very depressed levels to figures that would be less than half the pace as during the peak sales year in 2005.

One assumption underlying the home sales forecast is that the mortgage rates will continue to remain at near historically low around 5 percent and not more than 5.5 percent. Meanwhile, the unemployment rate is projected to stay high at slightly above 10 percent through the first half of next year, before steadily inching down. Another assumption is that the economy as measured by the GDP continues to expand at nearly 3 percent, thereby laying the foundation for eventual consistent net job gains sometime in the spring of next year.

There was indeed good news on the job front. In November, payroll jobs were reduced by only 11,000. Of course, job cuts are bad, but the momentum of fewer layoffs with each passing month is clearly positive news. Consider this: job cuts averaged 688,000 per month in the first quarter, 512,000 per month in the second quarter, 288,000 per month in the third quarter, and 111,000 in October. In the construction sector, the job loss in November was 27,000, but the pace of cuts has also been diminishing.

The average hours worked by an employee rose in November as well, implying more full-time hours over part-time. Moreover, employment information from households and not from established companies suggests a net job addition. A total of 227,000 jobs were added when based on household survey, thereby nudging the unemployment rate lower to 10.0 percent in November from 10.2 percent in the prior month. Usually, many start-up companies and consultancy jobs are not counted in the company survey data, which explains for the differences between household and company surveys on jobs. So as long as the job momentum moves for the better, the housing market forecast of 20 percent higher sales and stabilizing home values should hold up. An improving housing market and the very important development of home values and housing wealth stabilization will in turn better stimulate economic recovery.

Not all markets are equal, however. Detroit is hemorrhaging with 17 percent unemployment rate. The Washington D.C. area is buffered from so much government spending with the jobless rate at only 6 percent. Even if a bridge is built in Alaska, somehow jobs get created in D.C. Something right is being done in North Dakota with labor shortages and a state budget surplus. Bismark and Fargo have exceptionally low unemployment rates of only 3 percent.

On interest rates, the borrowing rate for a home purchase and refinance on a primary home has never been lower than it is now. The average rate on a 30-year fixed rate mortgage was 4.8 percent in early December. The rates will not move lower than this in 2010. All indications in fact point toward higher rates next year. The Federal Reserve could end the purchase of mortgage-backed securities (MBS) in March as currently scheduled, though my guess is that MBS purchases will continue for a bit further, though less aggressively. Even in the absence of the Fed's MBS purchase, mortgage rates will not suddenly rise to alarming levels. At most, mortgage rates will rise to the high fives (5.6 to 5.8 percent). Given global financial market inter-linkages, we need to be mindful that the Australian central bank has already begun to raise its rates and Canada is looking to do the same very soon. The European central bank, though not planning on raising interest rates anytime soon, indicated it is looking to stop its quantitative easing policy and possibly move in reverse very soon. That means that, rather than the central bank buying government and private market bonds out of newly printed money, it plans to mop up excessive cash floating in the system to assure inflation does not suddenly pop out of the bottle. With these developments, the U.S. Federal Reserve will surely have to raise its fed funds rate sometime in the second half of 2010 and stop the purchase of private bonds, including MBSs. Otherwise, the dollar will lose its ground to other currencies and steadily cut into our standard of living here at home.

The very high federal budget deficits could also do us in. After an all-time high of $1.4 trillion in budget deficit in the fiscal year 2009, another trillion dollar deficit is on the card for 2010 and near trillion in 2011 and 2012. A big factor in lessening the deficit is how the economy grows. If the economy expands and leads to robust job creation, then the deficit will be lower than projected. If the economy hits many speed bumps along the way then the deficit will get quite ugly. Therefore, a way to get out of the deficit jam is to promote policies leading to economic growth. But unfortunately, the high deficit could also put focus on ways to raise more tax revenue by chipping away at mortgage interest deduction, property tax deduction, and capital gains tax exclusion on primary residence. This discussion could come alive in 2010 and if it does surface NAR will vigorously defend homeownership policies that have been the very foundation of stable middle-class based democracy, civic participation, and long-term middle class wealth accumulation. Any housing policy leading to unsuccessful homeownership (such as the ones associated with the recent housing bust and foreclosures) should be dropped. But policies that promote responsible and sustainable homeownership have incalculable societal benefits and must be defended. In addition, given that homeowners already pay nearly 90 percent of all federal income taxes, trying to extract more out of homeowners will in the end be counter-productive economically and politically.

http://www.realtor.org/research/economists_outlook/commentaries/forecast1209

By Lawrence Yun, Chief Economist @ NAR

Congress Passes Tax Credit Extension/Expansion for Home Purchases

Download Government_affairs_tax_credit_ext_chart_110409

This is a comparison chart that can be a helpful resource as you look to take advantage of the credit in the months ahead.

Washington Examiner article about buying a home in Alexandria

http://www.washingtonexaminer.com/economy/real-estate/Expanding-the-search-in-Alexandria-pays-off.html

Financial Benefits of Home Ownership

There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. In addition to exceptional home affordability and near historic interest rates, here are some important financial benefits of owning a home:

Increased Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.

A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year's interest. This amounts to a significant savings - effectively reducing the amount of a homeowner's monthly loan payment.

Long-Term Appreciation: Over the last few years, home prices have corrected and become more affordable. While that's good news for potential buyers, it has overshadowed the long-term appreciation of a home's value. The reality is, despite market ups and downs, real estate historically appreciates around 6% per year. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 should grow in value to $364,000 over 30 years.

$8,000 Tax Credit: Don't forget, the government is offering an $8,000 tax credit for first-time homebuyers - or for folks that haven't owned a home during the past three years. However, the program is scheduled to end soon. In fact, the Internal Revenue Service recently reminded potential buyers that they must complete their first-time home purchases before December 1, 2009 to qualify for the special credit, which means the last day to close on a home and qualify for the credit is November 30, 2009.

If you're considering purchasing or selling a home, this is an ideal time. Call or email me today to discuss your specific situation and how you can benefit from today's market.

Federal Housing Tax Credit Timeline is running out!

The timeline to use the $8000 Tax Credit is summarized below.  Escrow companies are going to be extremely busy the last half of November and with Thanksgiving week taking two days away.  Don't miss out!

To qualify for the Home Buyer Tax Credit of $8000, you must buy your home prior to Dec 1, 2009

The tax credit is for first time home buyers, defined as  people who haven’t owned a home in the last three years prior to the day you close on your home purchase or people who have never owned a home.

Here is the current timeline working backwards from the last possible closing day for a frame of reference.


November 30th    -  Deadline    -  The transaction must be closed by this date to qualify for the credit.

November 19th     - Critical “Closing” date   -   The is the safe date to close by. The next week is Thanksgiving holiday week with county offices closed Wed-Fri.  Closing on or before Thursday, 11/19 will avoid the hassles of trying to close during the peak vacation time along with all the other buyers trying to close at the same time.

October 5th    - Critical “Contract” date  -   It is important to have a contract in place by this date if you plan on claiming the Federal Housing Tax Credit.  Most first time home buyers are using FHA financing, which realistically takes about 45 days to process.

September 15th  -  Ideal “Contract” date -   Sometimes your first offer isn’t accepted or the inspection can uncover unacceptable conditions, so ideally you should leave some time in case the first contract doesn’t work out.  I have had three clients miss out on competitive offers in the last 2 and a half months!

August 1st    - Ideal time to start looking -   The Federal Housing Tax Credit is putting up to $8,000! in your pocket, that is the easy part, but it usually takes  up to 3 weeks to find a home and become Pre Approved for financing - - no time like the present to get started.

                                                                                     

Information deemed reliable but not guaranteed.
 

Will the deadline for the Federal Tax Credit be extended? Maybe, however it could be extended with a lower dollar amount or with the payback requirement re-instated.  What is certain is that if you buy a home that closes before December 1st, 2009 and you qualify, you will get $8000.

Washington DC vs. Federal Tax Credits

This article has a great graph on the differences between the two:

http://dcmud.blogspot.com/2009/08/dc-v-federal-tax-credits.html

FHA Program Offers Purchase, Renovation Aid

The Federal Housing Administration is encouraging use of its little-known 203(k) loan program.

The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.

The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill.

But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency.

Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)

Buying a Home: Buyers Rush to Beat Tax Credit Deadline

Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30.

Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.

The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.

Source: Chicago Tribune, Kathleen Lynn (08/14/09)