Live on the Red Line - Real Estate

Kitchen Upgrades: Helpful Information...

The kitchen has always been the focal point of a home's living area, and one of the first features buyers look at during their home search. As many people cut back on expenses by eating out less and cooking at home more, having a functional kitchen has become even more important than ever.

If you are thinking of remodeling your kitchen, take the current economic climate into account when making your choices. Last month, builders and designers gathered for the International Builders' Show and discussed the following trends for kitchens:

• Pick a layout that makes it easier for two people to be working in the kitchen at the same time, such as putting the oven under the counter to one side of the cooktop.

• Install multiple refrigerators to accommodate extra groceries. Good options include under-the-counter and island models as well as refrigerator drawers.

• Achieve a calm environment by choosing appliances that run quietly and using calming colors such as green and blue.

• Making the kitchen more inviting doesn't have to cost a lot. Use expensive tile only as a backsplash or accent, or splurge on designer hardware.

More kitchen design ideas can be found at the National Kitchen and Bath Association Web site at www.nkba.org.

Montgomery County Housing Department Offers Online Reporting of Vacant Properties

Montgomery County residents can now report vacant properties through an on-line reporting system. Vacant properties can pose a number of potential problems for neighborhoods. In an attempt to maintain the health, safety and quality of Montgomery County neighborhoods, the County’s Department of Housing and Community Affairs is seeking help in identifying properties that present a blighting influence on neighborhoods, particularly those vacant and abandoned properties in the foreclosure process.

Residents who suspect that a neighborhood property is vacant and not being maintained properly by the owner or a representative of the owner (e.g. realtor) can complete and submit a “Report a Vacant Property” form by going to www.montgomerycountymd.gov and clicking on the “I Want To” link. From there, click on “File a Complaint” and then click on “Vacant Property.”

DHCA will inspect the property to determine if the property is properly secured and if there are any housing code violations. Violations include, but are not limited to, a vacant property or one where the grass is more than 12 inches high and/or the accumulation of trash and debris. Properties in violation of the County housing code are sent a notice to correct the violation. If violations for tall grass are not corrected within 10 days, the inspector will start legal action and a contractor will be hired to complete the work, with the owner billed for the service. Time required for correcting other violations ranges from 24 hours for those affecting life safety issues to 30 days for other non-safety issues.

Have Housing Prices Hit Rock Bottom?

Housing prices will hit bottom in the fourth quarter of 2009, predicts Moody’s Economy.com in a new report.

"Despite the darkening national economic outlook and the weak conditions in the housing market, some positive signs give hope that a bottom in the housing market is coming into view," the report says.

On average, home prices will decline 36 percent from the peak in the first quarter of 2006, the report says.

By the end of the housing downturn, nearly 62 percent of the nation's 381 metropolitan areas will have experienced double-digit-percent declines in house prices, peak-to-trough, says the report.

The declines will exceed 20 percent in about 100 metro areas, according to the report, scheduled to be discussed in a Webcast on Thursday.

The recovery will be “lackluster,” the report continues.

"A number of uncertainties in both the housing and economic outlooks remain, and the risks tilt to the downside," says Moody’s Economy.com Chief Economist, Mark Zandi.

_{Source: The Wall Street Journal, James R. Hagerty (02/06/09)}

Mortgage rates fall!

Mortgage rates fell this week as President Barack Obama pledged $275 billion to reduce foreclosures.

McLean-based mortgage buyer Freddie Mac reported that the rate for a 30-year fixed loan fell to 5.04 percent from 5.16 percent in the previous week. For the same week last year, the rate was 6.04 percent.

In the week of Jan. 15 the rate had dropped to 4.96 percent, the lowest on record. This week’s 15-year rate dropped to 4.68 percent from 4.81 percent last week.

New Stimulus Package Signed Into Law

President Obama signed the American Recovery and Reinvestment Act into law Tuesday afternoon. The $787 billion plan is designed to stimulate consumer spending and create jobs, in order to help families recover and prosper.

Realizing that an economic recovery is contingent upon improvements in the housing market, the package includes provisions that will help attract first-time buyers, reduce inventory, stabilize home values and improve liquidity in the overall mortgage market.

The bill specifically helps real estate in the following ways:

• Increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement.

• Reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac.

Both provisions were championed by the National Association of Realtors (NAR), which estimates that the new version of the homebuyer tax credit could stimulate up to 300,000 additional home sales.