U r b a n T r e k k e r

Maryland is #5 Worst Gridlock

Reason Foundation, just released their 16th annual report on the condition and performance of U.S. state-owned road system. According to Reason Foundation, 52% of of U.S. urban interstates are now congested and traffic fatality rose slightly. That includes the Beltway.

The beltway is number 5 on their list of the worst traffic gridlock. Surprisingly, Virginia is number 31 on their list. Traffic congestion is worst on Maryland's side than on Virginia? That is interesting. I guess, they're looking at average across the whole state.

Here's the ranking for the "Top 10 Worst Gridlock"

1. California
2. Minnesota
3. New Jersey
4. North Carolina
5. Maryland
6. Kentucky
7. Connecticut
8. Rhode Island
9. Ohio
10. Texas

via CNN/Money.

The good news. A survey from U.S. Census Bureau on American Community, reports that -- Washington DC has the second highest public transit users. New Yorkers are top transit users, or 37.7% of workers uses Metro to commute to work.

Full report available, here.

Technorati Tags: transportation, the beltway, maryland, virginia, home buying, home sales, real estate, real estate trends, cars, suburban living, new york, census, urban living

What Can You Get for $600,000?

So, you're looking for a $600k home. These days, if you're looking to pay under $600k, you've got plenty of choices. In fact, as of today the total number of properties on the market under $600k for Metro DC region that includes Washington DC, Arlington, Alexandria, Falls Church and Fairfax -- is 4800 homes. On the condos land, I found that there are 2913 condos for sale under $600k. With plenty of choices on the market -- we're still in buyer's market.   

There is only 15 single homes on the market listed for $600,000. Most of these homes located in Fairfax. Five townhouses right on the $600k price. And only two condos. These two condos are on Carlyle Towers with 1200 s.f. of living space.

Here is a sample of houses on the market that fits the criteria.

Opportunity for Investment? 617 Raleigh Pl. SE, DC 20032

THIS house is on the market for $331,000 in Congress Heights subdivision in DC. It has 3br/1ba and 2 half ba sits on .18 acre of lot. According to info on MRIS, the property is sold as-is.

4529 Peacock Ave, Alexandria 22304

This one is a two-level home in the City of Alexandria sits on a 1/4 acre of lot. It has 4br and 3 full baths. Total living space is 2230 s.f.

What it says on the remarks:

Remodeled baths, hdwd floors, Kitchen has granite countertops w/ maple cabinets & stainless steal appliances. LR w/ gas fpl, NEW windows. SGD off Dining room to private brick patio and wooded backyard. Basement has huge Rec room w/ built-ins, Berber carpet, 4th BR w/ built-ins & full bath. All this only blocks from 395. Listed by Re/Max.

3218 Patrick Henry, Falls Church, VA 22044

Looking for a short sale? Here's a property on the short list. A colonial 2 level home with 5 br/ 2ba in Falls Church with living space of 2300+ s.f. Close to Falls Church City boundary, Seven Corners, and Route 50. Understand that in a short sale situation, it requires third party approval (read: lender/s)That means -- you have to have flex time. If you're looking to close in a short time, this isn't for you. Listed by Fairfax Realty.

2312 1st Street DC 20001

A DC rowhouse located in Ledroit Park neighborhood. Four level rowhouse with 5 bedrooms and two full baths, built in 1907. This is an estate sale, sold as-is. This house is for those who have extra funds to fix-it-up. The construction probably still good, however there are some things that needs to be fixed.

10K Closing help w/FPO, Estate Sale, Grand 4 lvl Vic w/ good bones & natural ornate mill work & trim: rope ballusters, pocket doors, transoms,9'+ ceilings, orig. doors,dual staircases, etc. Move in ready, renovate at your leisure. Some ductwork in place, stately curb appeal, stone bsmt walls, a few joists damaged by termites, but house overall appears Solid. Sold strictly As-Is. Listed by Re/Max Allegiance.

To see more listings for single homes, townhouses and condos. Or use google based search map, here.
 

Technorati Tags: short sale, pre-foreclosure, dc, arlington va, falls church, real estate, fairfax county, alexandria, homes sales

 

Real Estate News Roundup

Del Ray, Alexandria

* Mortgage Forms Sow Confusion [Washington Post]
"With mortgage delinquencies and foreclosures soaring, federal researchers have identified a key contributing factor: Many borrowers simply do not understand their mortgages -- especially subprime loans that come with complex features and costly penalties."

* In a Sea of Loan Forms, Disclosure Proposal Offers Possible Rescue [Washington Post]
"What is a point? What is a margin? What does "due on sale" mean? Did you comparison shop and review the APR? What's APR, anyway?"

* Home Sales Hit Slowest in 4 Years [USA Today]
"Reflecting further housing troubles, sales of existing homes fell in May to the lowest level in four years while the median home price dropped for a record 10th consecutive month."

* More Thoughts on Sub-Prime Loans [The Ground Floor]
"Yesterday, the mortgage markets roiled Wall Street. The big lenders, heavily leveraged hedge funds, CDOs (which invest in MBSs using a lot of debt) and Bear Sterns all burned the wires trying to decide what to do with a couple of Bear Sterns' mortgage funds that are in deep trouble."

*WMATA To Sell Navy Yard East Entrance [JD Land]
"MATA's Planning, Development, and Real Estate subcommittee has recommended to the full board that NJA Associates LLC (a subsidiary of Donohoe) be picked to purchase and develop the 5,612-sq-ft east entrance of the Navy Yard Metro station at New Jersey and M."

* How Can I Remodel My Oceanside Property for Maximum Energy Efficiency [Green Home Guide]
"Question: I am about to begin a major renovation and extension of my oceanside property. We want to create an inside/outside feel by using large sliding glass doors, but we also would like to minimize the need for air conditioning. Can you provide energy efficiency tips for our situation? Also, can you recommend any window/door manufacturers? We need to have hurricane resistant glass and also consider security."

* Best Cities for Young Professionals [Forbes]
"Head to the Big Apple, and your chances of getting the corner office might not be as far off as you think."

* Homes Sell. Homes Don't Sell. Builders Still Build [NYT]
"THE American housing market, as measured by home-building activity, is falling at the most rapid rate in decades, underscoring the pain felt by builders who were far too optimistic about the state of the market."

* Silver Spring Downtown Headed for Another Face-Lift [DC Examiner]
"Silver Spring's downtown is in store for an even more dramatic face-lift than the transformation that's taken place over the last few years."

* Top 10 Markets with Lowest Mortgage Risk, Summer 2007 [The Real Estate Bloggers]
"If you are looking to move to a safe and non volitile community where property appreciation is going to be modest and safe, these communities according to the PMI Institute are positioned to be your best bet. They have determined that these communities have the least risk to mortgage failure and foreclosure."

* Students in Your Neighborhood, Bad or Good for Your Property Values [Real Estate Journal]
"Question: I own a home right up the street from Central Connecticut State University and  am concerned about the future of the community and real-estate values surrounding the university. My main concern is that people are buying single-family homes and not fixing them up, then renting them out to college students."

* Many Lessons Can be Learned from a Classic Log Home [Sun Gazette]
" Drive by 4572 26th Street North in Arlington, and you might think you're passing a regular old house, but you'd be wrong. The house at that address is Birchwood, one of the oldest log homes in the county."

* Kitchen Face Lift for the Frugal [CNN/Money]
"You're longing to replace those dark oak cabinets, avocado appliances and worn countertops in your kitchen. But the $50,000 to $100,000 price of a high-end renovation and the thought of living on kung pao for three months during construction make you queasy."      

You Ain't See Nothing Yet In Subprime

The subprime loans fall out is getting worse. The ripple effect on the mortgage loans drives two Bear Stearns hedge funds almost to a screeching halt. Understand that hedge funds usually bet heavily into some kind of investments. Investing into hedge funds not for the fainted heart. Only for those who understand the risks. It is like playing casino on steroids. The two funds bet heavily into mortgage-related securities and derivatives. Merrill Lynch seized $800M of their bond collateral and put it on private auction. If they sell it on the market, this kind of news would definitely rush investors to dump securities.

The biggest losers? Bondholders.

As defaults rise, bondholders stand to lose as much as $75 billion of subprime-mortgage securities, according to an April estimate from Pacific Investment Management Co., manager of the world's largest bond fund. Investors in all mortgage bonds will probably take about $100 billion in losses, according to a March report from Citigroup Inc. bond analysts.

via Bloomberg

More stories:

• Two Hedge Funds' Assets Put Up for Sale [USA Today]
• Rescue Plan for Two Hedge Funds May Falter [Boston Globe]
• Bearn Stearns Plans $3.2 Billion Hedge Fund Bailout [Bloomberg]
• Bearn Stearns CEO Says Overcollateralized on Loan [Reuters]

Technorati Tags: bearn stearns, merrill lynch, hedge funds, PIMCO, bond market, wall street

 

Bailey's is at A Crossroad

Bailey's Crossroads is an area located in the neighborhood that desperately needs 'an extreme makeover.' The area needs makeover to blend well with the existing landscape. Because this area has a lot of history.

Much of the land comprises today's at Bailey's Crossroads was once owned by George Washington. The area developed slowly as a collection of small farms and simple residential and commercial structures built at the intersection  of the two major roads serving the area: Columbia Pike, built in 1808,  linked the western farmlands of Fairfax County with the newly laid-out market of Washington City.

via Fairfax County

Fast forward some one hundred years later, there are two community business centers (CBC) along Route 7 bounded by Alexandria, Falls Church and Arlington: Bailey's Crossroads and Seven Corners. They are two of seven Fairfax County redevelopment districts.

Image: Fairfax County

Because of its proximity to DC, Pentagon, many of the buildings around Baileys are occupied by defense related contractors or government related. You might think that when you live in neighborhood where concentration of high rises is high (commercial and residential) and they're practically within walking distance from each other -- this area is far from pedestrian friendly let alone being a walkable neighborhood.

Well, that's going to change. The county envisions in the land use planning for Baileys to have a mix of neighborhood and community serving retail and office use as well as townhouse and multi family, retails, offices, and to have pedestrian scale and character.  What's interesting UVA study suggests the county to improve its transportation for this hood by using light rail.

In the meantime, there are a couple of proposal in the pipeline of redevelopment, according to Washington BizJournal. One of them is a proposal for 2.2 million s.f. residential, office and retail development that will be built on the site where Gold's Gym sits.

Technorati Tags: bailey's crossroads, falls church, alexandria, arlington va, seven corners, fairfax county, redevelopment, revitalization

Tunnel Through Tysons?

Hold your breath first. No, we're not there yet. I know this has been an ongoing forward and backward moves whether to have tunnel or elevated tracks. There's no question about it that a lot of people would rather see Tysons tunnel than elevated tracks. I am there, too. But, the government wants to give money only to cover elevated tracks!

However, if we take a closer look to what the vision of Dulles Metro will be, it looks like tunnel is 'their option.'

Here's the map.. via Dulles Metro Rail.

click to (+) image

Progress Update:

• Dulles Rail Vote Draws Criticism and Praise [DC Examiner]
• Loudoun County Board of Supervisors Approves Metro Funding [Urban Tysons]
• Dulles Rail Project Moving Along [WTOP]
• Dulles Extension to Cost $46M a Year to Run, Metro Estimates [DC Examiner via Tysons Tunnel]

Technorati Tags: dulles metro, tysons corner, tysons corner tunnel, washington dc, fairfax county, loudoun county, real estate

Coming Up Short, When Sellers Upside Down

Short sale, pre-foreclosure, happens when the homeowner owes more money than what the house is worth. This is such an 'unfortunate' thing for those who bought houses at the peak of the market and  have mortgages with "payment shock." Variation of mortgages that can give you a 'payment shock': 2/28 and 3/27 mortgages, interest-only mortgages, payment option adjustable rate mortgages. And features like a 'teaser rate,' option to pay less than the full interest due every month, etc.

On the local market, we've seen the number of homes that falls under the category rising, especially true for condo market and outer suburbs like Prince William, Loudoun counties more than affecting the inner suburbs. There are 140 properties marked short-sale, REO, or pre-foreclosure for the inner burbs (Arlington, Fairfax, Alexandria), 14 properties in the District vs. 297 properties. Some of these properties already owned by the lenders.

The other day, Washington Post had an write up on high foreclosure rates nationwide. According to Mortgage Bankers Association, foreclosures are on the rise in California, Florida, Nevada, and Arizona. Fortunately, DC is not on the list. But, foreclosure will be the last resort for a seller who is short-on-the-money. There's a process before the property gets auctioned on the steps of courthouse.

If a homeowner is having problems paying mortgages, there are options available. :

• Repayment Plan
• Forebearance
• Modification: Reduction of interest rate, extension of the loan period, reamortization with capitalization of arrears (negative amortization), and reduction of the principal balance.

If the above options don't work in your case, available alternatives:

• Short sales/ pre-foreclosure sales
• Deed in Lieu of Foreclosure
• Assumptions

via flyer by Beau Brincefield

Let's face it: No one wants to lose their home! Understand that lenders don't want to foreclosed your home either. It'll cost them more money. I heard it's somewhere in the neighborhood of $75,000 a pop. So, from the cost benefit analysis -- it will be cheaper (and less headaches, probably) for the lender to 'work out' a deal with the homeowner. Lenders will also look at if you have some other form of assets (stocks, bonds, etc.) for consideration. A short sale is the best option to the lender, because lender don't want to carry out a property and dealing with headaches of down market that sellers have to deal with and have their assets in the non-performing category. Not good if banks have high non-performing loans/ assets in their portfolios, especially for public companies.

A good place to start if you're having problems -- is to seek counseling. Try to talk to professionals (Realtor, real estate lawyer, etc.) who can then help you sorting out options. You want talk to your lender, too. A more complex situation is if your mortgages have been "securitized," that means your mortgages owned by several players. It won't be as easy as if you only have to deal with 1 or 2 lenders. You will need more time to get everybody (read:all the lenders) on board.

Tax Liabilities

Uncle Sam wants to have a share on the money that you didn't pay to the lender. In other words, the forgiven part of your mortgage is taxable even though .. you never received the money. Lenders are required to submit a Form 1099 stating the forgiven amount. If you meet the definition of IRS insolvency, then you will not have to pay taxes on the forgiven amount. [Note: There is a bill working through Congress on its taxability]

Resources & links:

> Working together with Center for Responsible Lending, NAR has recently published an educational flyer, "Learn How to Avoid Foreclosure and Keep Your Home."

> "Foreclosure Prevention Counseling," by National Consumer Law Center.

Image: Urban Outfitters

Technorati Tags: pre-foreclosure, short sale, foreclosure, washington dc, real estate trends, real estate, mortgage payment, payment shock, nar, center for responsible lending, 1099

Real Estate News Roundup

* Attracting Vacation Home Renters [NYT]
"Several years ago, after arriving at her vacation rental on Oneida Lake in upstate New York, Christine Karpinski noticed that the house lacked an essential amenity: a barbecue."

* Buyers Get Squeezed Out of the Housing Market [USA Today]
"Would-be home buyers, such as James Aberle, have watched with angst as mortgage rates have jumped nearly 10% in just five weeks."

* Invest in Foreclosures Patiently [Washington Post]
"Q: In this post-boom market, what is going to be the prospect for investors who focus on foreclosure real estate? Do you think there will be any major shifts in the next five to six months?"

* To Pay, or Not to Pay Extra on Mortgage [Zillow]
"What with the subprime mess still making headlines, you're probably getting sick of reading about mortgages. I sympathize."

* Prolonged Slump Seen in Housing; Prices Still Out of Reach for Many [Remodeling Online]
"After soaring for five years, house prices are likely to be flat or lower this year. But homeownership will still be out of reach of reach for many Americans."

* Seller Rushes to Make Fixes Before House Goes on Sale [Real Estate Journal]
"Lately my house has been in such a mess that I can't even find the checklist of items I planned to address before it hits the market."

* New House Contract Easier to Understand [WHG]
"In the midst of the excitement of buying or selling a home, few consumers want to take the time to read a lengthy document filled with legal terms that can be difficult to understand by someone without a law degree."

* Week in Arlington [Connection]
"A group of residents who live near Little Pimmit Run in North Arlington are trying to stop a county hydrological project in court."

* Silver Lake Park Review Gets Under Way [Gainsville Times]
"Staffers in Prince William are preparing to hear three competing proposals from groups that want to take over and manage the Silver Lake property in Haymarket. According to Assistant County Executive Susan Roltsch, the Bull Run Mountain Conservancy, Northern Virginia Regional Park Authority and Prince William County Park Authority are all seeking rights to the 233-acre park site."

* Housing Market Cools Down [CNN/ Money]
"Some of the nation's most overheated housing markets may be cooling off to more reasonable levels following their unprecedented run-up in the first half of the decade."

* Foreclosures Up Nationally, But Not in Washington Region [DC Examiner]
"Foreclosures and late payments on subprime adjustable-rate mortgages rose to all-time highs in the first three months of 2007, according to a report released Thursday."

* F.C. City Hall Concedes Big Condo-to-Rentals $ Impact [FCNP]
"The conversion of 230 residential condominiums from “for sale” to “for rent” units in the large-scale Pearson Square project will impact Falls Church taxpayers, new documentation from the F.C. City Hall has confirmed."   

Grantor's Tax Will Not Increase Yet!

You heard it right. Part of the transportation bill package passed by Virginia General Assembly last March, in it there's Northern Virginia transportation plan that will provide $400 million in revenues. The revenues supposed to stay in and spend for transportation related projects in NVa.

Grantor's tax is what you -- Mr/Ms seller pays when selling a home. It is part of the closing cost. I am okay with the plan that money raised in NVa should be spent and used for our region. However, I don't like the fact that 'buyers' homeowners get ding again!

In Virginia, all new bills usually take into effect July 1. That's the 'usual and customary' practice here. It looks like, the date for the implementation of the new taxes and fees for Northern Virginia will not take effect this coming July 1.

Here is the list of what is included in the plan. Via NVAR.

The taxes and fees in the Northern Virginia plan are:

• 40 cents per $100 increase in the real estate grantor’s tax
• 2 percent increase in the rental car tax
• 2 percent increase in the hotel/motel occupancy tax
• $10 increase in the vehicle safety inspection fee
• 1 percent initial vehicle registration fee (for new car purchases or those     moving into the region)
• 5 percent sales tax on auto repairs
• $10 regional auto registration fee

In addition, the authority may choose to implement the following optional   revenues:

• Annual commercial real estate fee of up to 25 cents per $100
• $10 local car registration fee
• Commercial/residential impact fee (amount to be determined)

* House bill HB3202
* Northern Virginia Transportation Alliance

DC Metro: May '07 Home Sales Trends

Washington D.C. is a Seller's Market

Last night at an event, a friend came up to me and ask "Is it a good time to buy in Arlington now? Prices down coming down further..." Is it, is it...? To which I replied about the current market conditions, and share the info that the sales data for April shows prices have gone up instead of coming down! I can tell from the look on her face that she was a little bit 'disappointed' hearing the news.  I understand that. Here is the thing -- NO one controls the market! That's why, we've got deal with the reality and seized that opportunity whenever it comes around. 

This time, instead of looking month-to-month up or down, like I usually do, we'll look at where the market is today from 2006? Is it showing an up or down trend since then. We'll look at Arlington County as an example.  This is the what 12-month price trend for condo market looks like (below). Data/information speaks louder than words.

Via NVAR.

In the 'financial world' (read: stock market), one of the things you'll look for when doing research is looking at the 12-month high and low prices for positioning. Positioning, in the sense at what price you want to jump in and buy that stock, if it makes financial sense. You can see from the graph, that the 12-mo. high was at $409,702, while 12-mo. low was in July of 2006 at below $350,000. Clearly, that market has slowly creeping back up since then. We have to remember also what inventory of homes look like at that time in May of 2006.

Via NVAR.

Inventory of condos was at 700+ for the month of May '06 that was supposedly "Spring Season" or, peak season for housing. What a difference a year make! Because since then,  with additional new listings coming to the market every month and yet -- inventory of condos stands around 528 units in 5/07. That means -- more people take advantage of the situation (low prices and interest rates) and bought condos. The number of condos that went under contract last month is 178. With the current absorption rate, Arlington condo market is, a seller's market!

Market Indicators for Northern Virginia

• Days on market 73 (51) 
• Number of homes sold 1,816 (2,069)  -12.23% 
• Ave. sold price $549,197 ($553,618)  -0.8% 
• Ave. list price for solds $574,549 ($569,376)  +0.91% 
• Ave. price sold as percentage of ave. list price 95.59% (97.23%)

Via MRIS.

As of May '07, the total number of active listings is 10,240 with 2,043 homes went under contract last month. Northern Virginia is at 5 months supply. Still a balanced market.

Market Indicators for District of Columbia

• Days on market 61 (50) 
• Number of homes sold 691 (725) -4.69% 
• Ave. sold price $528,113 ($568,371) -7.08% 
• Ave. list price for solds $541,146 ($599,328)  -9.71% 
• Ave. price sold as percentage of ave. list price 97.59% (94.83%)

Via MRIS.

The total number of active listings in DC for May is 3163 (all types) with properties under contract at 837 homes. DC homes is at 3.7 month of supply. DC -- is in the seller's market territory.

Buyers: You better ACT soon, or else.. you'll miss the boat. It'll be much more challenging to make that 'dream of home ownership' comes true, when interest rates go up and up.

More info >> DC condominiums data, here. DC single homes data, here.

Technorati Tags: homes sales, washington dc, arlington va, real estate, real estate trends, housing market indicators, inventory of homes, stock market