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

Loudoun Home Buyers Get a Little Help from the County..

Last I wrote, City of Alexandria helps first-time buyers with assistance of up to $30,000. Now, Loudoun County also decided to help buyers as well. It's called the "workforce housing" program. It will be launched across the county this summer for first-time buyers including those repeat buyers, who might be making too much according to income cap for other jurisdictions in Northern Virginia.

The Virginia Housing Development Authority (VHDA) has allocated funds for Fiscal Year 2008 for the FlexSPARC program, a new, below market rate, home loan program offered in Loudoun County. The program, administered locally by the Loudoun County Department of Family Services, is tailored to meet the needs of first-time homebuyers. The funds will be available until fully utilized or through June 30, 2008.

via Loudoun County

click to enlarge (+)

There are two programs working side-by-side. Here is how it works.

1. Under the new program, individuals who make up to $108,000 and couples who make up to $135,000 may borrow up to $417,000, with the interest partly subsidized by the Virginia Housing Development Authority.
2. A similar program is available for first-time or repeat homebuyers who make 70 to 100 percent of Loudoun's median income, which is $94,000 by the county's calculations.

via Washington Post

Loudoun has $4.5 million in their coffers, so not everyone will be qualified. Time is of the essence - you better hurry up. It doesn't take long to disburse the funds.

Disclosure: I am a certified Trainer for VHDA class.

Market Confidence Meter

Around the U.S. News Headlines

New Home Sales Sink, as Does the Forecast [Washington Post]

Rates on 30 Year Mortgages Remain High [USA Today]

Foreclosure Rates Could Soar [CNN/Money]

Bargain-Hunters Boost Stocks [TheStreet.com]

July Consumer Sentiment Up, Risk Linger [Reuters]

Healthy Jobs Data May Soothe the Savage Market [Market Watch]

Immigrants Lift U.S. Housing Market [Kiplinger]

 

Washington DC News Headlines

Arlington's Employment Picture Still Tops in Va. [Sun-Gazette]

Fairfax's Employment Rate Remains Strong [Sun-Gazette]

Labor Report: Wages High in Washington Region [DC Examiner]

New Metro-Area Companies Ranked High by Entrepreneur Magazine [DC Examiner]

Even Google Needs a DC Office [Regional Biz Blog]

Biotech Acquisitions Elevate Regional Profile [Regional Biz Blog]

 

You get the idea -- the market is mixed.

All real estate is local. Pay attention more to what's happening around us - locally. You can get a better sense of what the current market conditions is for the region. The news for the local economy, gives the readers 'very' positive outlook.

• Strong employment.
• Companies are coming to DC.

For the housing market. The sector depends on jobs. Jobs - attracted people to the area. More people coming to D.C. region, more housing is needed. As simple as that.

 

Note: I 'borrow' the term from Anthony Carr, the managing broker at Weichert's office in Burke. He always uses lotsa statistics to show the current market conditions.

 

 

Technorati Tags: jobs, metro dc region, google, stock market, foreclosure, mortgage interest rates, new home sales, labor, wages, fairfax county, arlington va, housing market, washington dc region, current market conditions

Real Estate News Roundup

5113 knapp, alexandria

* Backing Out of A Sale the Last Minute [Washington Post]
"Q: DEAR BOB: I recently put my house on the market for sale. I received a purchase offer from a buyer, and we agreed on closing the sale. But because of job-related issues, I am no longer willing to move and do not want to sell. Can I get out of this agreed purchase offer without selling my home? -- Tim S."

* All Politics is Local: Blue States Beat Out Red States in Home Values [Zillow]
"Ready for some more Internet history? If so, tune into CNN (or at CNN.com) tonight for the first-ever CNN-YouTube debate where the Democratic candidates will field questions sent in by regular ‘ol users — citizens of the U.S.! — via YouTube."

* But Buyer Psychology is Part of Market Value [Matrix]
"The NAR says consumer psychology is to blame."

* Incentive to Buy [Market Watch]
"Flashy buyer incentives like a new car parked in the driveway or a flat-panel TV might grab headlines but when it comes to actually enticing someone to buy a home it's the more practical perks that count, real-estate professionals say."

* Top First Time Home Buyer Tips [MSNBC]
"There is more to buying a home than collecting curtain swatches and making sure you've got enough moving boxes."

* Housing News Turns the Stock Market to Mush [MND]
"It's been a rough week for the housing market. Homebuilder confidence is in   the gutter, existing home sales fell substantially and the bad news emanating   from the subprime debacle continues top headlines. Now we have new home   sales and builders reporting earnings."

* Children's Museum Lands at National Harbor [Washington BizJournal]
" The National Children's Museum has found a home at the $2 billion National Harbor development in Prince George's County."

* Some Hard-Hit Cities See Signs of a Housing Market Turnaround [Real Estate Journal]
"Tighter credit is prolonging a deep slump in home sales, but a quarterly Wall Street Journal survey of 28 major metro areas shows that the surge in inventories of unsold homes is slowing. In two of those markets -- Boston and Denver -- the number listed for sale has actually declined from a year ago."

* Learn to Analyze a Property Before You Get Burned [Bigger Pockets]
"I noticed a property listing on Craigslist, titled “$150000 THIS IS THE BEST DEAL IN TOWN” and decided to take a look. Since I was about to find out about the best deal in town, I was really anticipating what was to come. Sadly, what I found was just another loser property."

* Army Agrees to Complete Long-Delayed Artery Link [Times]
"An agreement announced yesterday will conclude a years-long dispute over the completion of the Fairfax County Parkway and sets in motion a possible Holy Grail solution for distributing new federal workers coming to Fort Belvoir."

Funds Belly Up, $23.5 Million Yacht for Sale

Trading on the edge in subprime mortgage market, United Capital hedge funds, sunk. Bloomberg explains that, "Hedge funds are private, largely unregulated pools of capital whose managers participate substantially in profits from money invested." 

You’ve gotta feel for him. John Devaney, United Capital’s chief executive and a one-time master of the mortgage market who has been taking it on the chin lately, has put his yacht up for sale — for $23.5 million. According to TheStreet.com, he is selling his 142-foot Trinity yacht, dubbed Positive Carry, and his $16.5 million second-home, named Sardy House and the home of the nation’s largest living Christmas tree.

via DealBook

So, Positive Carry is not positive after all.

We know that owning a yacht is a luxury. But, pardon my ignorance.. I can't even begin to imagine what a $23.5 million yacht looks like on the inside! TheStreet.com describes how the yacht has 42-inch retractable plasma screen with theater sound, a sun deck, an eight-person jacuzzi and barbecue area.

And for the new owners of the boat, NY Times has come up with a few suggestions for the new name: Margin call, Sinking Ship, No Doc Dinghy, Sub-Merged, Not so FICO.

Vote yours, here.

Technorati Tags: united capital, john devaney, thestreet.com, fico, positive carry, yacht, new york times, subprime loan

BRAC Going to Springfield Instead

Washington Post, reported that the Army agreed to cap the number of employees heading for Ft. Belvoir (due to lack of mass transit alternatives) to only 8500 workers, which is only about less than half of what originally intended.

click to enlarge (+)

Springfield neighborhoods, will be the beneficiary of the relocation! Sorry, people .. who had been counting for BRAC housing boon for Ft. Belvoir area. I guess, the workers don't have to move anywhere now, because of Metro and VRE access. This is good news for Springfield area.

The jobs no longer bound for Belvoir would head instead to Springfield -- and a property within walking distance of Metro and Virginia Railway Express stations. The Army would tear down an empty General Services Administration warehouse near the Franconia-Springfield Station and build offices there, state and Army officials confirmed. Springfield, which is hoping for a revival, is closer to mass transit and major highways and could better absorb the increase than the area around Belvoir.

via Washington Post

Meanwhile Washington Metro Transit Authority, is getting ready for the influx of workers to this part of the region. Glad - that Springfield's mixing bowl is finally completed.. just in time for the relocation.

Recommendation: Buy Springfield homes now.. better yet, Lorton! While it is still strong 'buyer's market.'

Technorati Tags: lorton, springfield va, fairfax county, arlington va, alexandria, new home, franconia-springfield, Washington metro, BRAC, US army, relocation, workers, Pentagon, pentagon city, springfield mixing bowl, KSI

Housing Assistance from City of Alexandria

click to enlarge (+)

The City of Alexandria revives their Moderate Income Housing Program with funds ready to go for disbursements after July 7, 2007. The funds is available for first time home buyers who live or work in the City. The big benefit of participating - is you can buy home so long as the maximum price does not exceed $399,600! For the City..that is plenty. The number of homes available as of today: 403 (all types).

To qualify you must submit an application. According to the info via NVAR, funds will be available as soon as after July 7 this year. Requirements: 

1. Buyers must live or work in the City of Alexandria 
2. Completes the City home buying education program and receive a homebuyer training certificate 
3. You must set aside $3,000 of your own money to either settlement or the downpayment 
4. Purchase price can’t exceed $399,600

via Go Alexandria

• Office of Housing City of Alexandria 
• Download brochure

Technorati Tags: alexandria real estate, virginia homes, home sales, home buying, nvar, mihp. first time buyer, city of alexandria, townhouses, condominium, single family homes

 

 

DC Bus Rride

Whoever video taped the bus ride going through different hoods in Chevy Chase, keep up the good work. Via You Tube.

Fairfax's New Definition of 'Addition'

In recent time, Fairfax County had been receiving three additional permits application per week from those who calls their home construction as an 'addition,' when in fact - they're building an entirely new home on existing home foundation. Because under normal circumstances, all new homes are subject to all inspections and code.

Gone now the loophole that allows building an entirely new home aka McMansion and call it as an 'addition.' By closing the loophole, what the Supervisors want now is - if you really want to partially tear down a house and build an entirely new home...to not call it an addition. Unless, it meets the new definition of an 'addition.' 

Here's what the new definition of 'addition' says,

1. The new construction must not exceed 100 percent of the existing above grade square footage. 
2. No more than 50 percent of existing structure be demolished.

via NVAR

Addition or New Home?

Take the example of this house in my neighborhood. This is what it looks like before they demolished part of the house.   

This is how the proposed new home or 'addition' build on its existing foundation. Picture was taken a couple of days ago.

Using the new definition, will this house qualify for an addition or a new home? In my opinion, externally it looks like the property above might qualify as an addition. It sits on existing foundation. The proposed new home looks like not more than 100% of existing above grade (or ground) footage. And less than 50% of the structure was demolished. But who knows...

At the end of the day, it's Fairfax county inspectors who have the 'stamp of approval.'

Technorati Tags: new home, addition, fairfax county, real estate, building codes, tear down, house, mcmansion

Real Estate News Roundup

Asian Festival in Reston

* Nobody Understands Buyer Agency - Certainly Not Newsweek [MND]
"An otherwise very smart real estate attorney once said to a friend "Nobody   understands dual agency." It seemed like a weird thing for a lawyer to say at   the time but Newsweek has just proven his point."

* Daredevil Homeowners? [Inman News Blog]
" What do homeowners in Orlando, Sacramento, San Diego and Phoenix have in common? PMI Mortgage Insurance Co. and Forbes agree they are invested in the nation's 10 riskiest markets."

* Least Affordable U.S. Real Estate Market [Forbes]
"Forget coffee when it's time to sober up. Instead, check out the real estate listings in  New York or  Los Angeles."

* Should Your Home Valuation Deserve to Appreciate if You Install a Pool? [Digerati]
"Real estate agents claim that the valuation of a property can be boosted if it contains any one of these amenities, also known as extras or optional niceties for your home:.."

* Trees Meet Forest [DCist]
"Not too long ago this site, along with the D.C. Council and much of the rest of the Washington area, was actively debating the incentive package for the new Washington Nationals stadium"

* A New Grand Plan for 200 Affordable Homes [FCNP]
"A major initiative for 200 new affordable housing units in the heart of the City of Falls Church’s city center redevelopment area has been pieced together by the Falls Church Housing Corporation. It includes a robust commercial component constituting 51% of the overall project."

* $300 million Community Planned by Developer [DC Examiner]
"A Washington-based development company plans to turn a former trucking terminal in central Laurel into a $300 million mixed-use community."

* Who Owns Times Square? [BW Hot Property]
"Labor unions are at war with the private equity industry. They say the big buyout firms cut U.S. jobs to boost profits at the companies they acquire."

* What Are the Environmental Benefits of Engineered Stone Countertops [Green Home Guide]
"Question: Any thoughts on engineered stone countertops (also known as quartz countertops)? I'm having a hard time finding an environmental argument to justify their use in a new home we are building. Any information about quartz as a "renewable resource" or the lifecycle of engineered stone tops is most appreciated."

* A Much More Urban America [Washington Post]
"Thirty years ago, some futurists predicted that the restructuring of the American economy and our technological advances would free and un-anchor us from place, precipitating a mass de-urbanization throughout the nation."

* Want Better Credit? Know the Score [Washington Post]
"Credit scores have become increasingly important for American consumers. A survey released this week shows that more people seem to have realized this and have figured out their scores."

* Why the IRS is Showing Mercy to Some Home Sellers [Real Estate Journal]
"Being a crime victim is usually no cause for celebration. But there is at least one consolation: The IRS may give you a tax break when you sell your home."

* The Most Affordable Places to Live [Money]
"Want a buy a home for less than $100,000? Check out these communities profiled by Money Magazine."

* Green Isn't Cheap [Fairfax Connection]
" With a $3 million state grant, the City of Fairfax can take an important step in 2008 toward becoming a greener municipality."

* Tysons Planners Look to Arlington for Example [Sun-Gazette]
"As planning gets underway to revitalize and expand the massive Tysons Corner corridor in Fairfax County, those who are thinking about Tysons' future are looking to Arlington's success."

* Making Offers REO - Real Estate Owned - Foreclosure Properties [Bigger Pockets]
" A new member to our real estate forums recently inquired about putting offers in on REO (Real Estate Owned) Properties."

June DC Metro Housing Data (part 2)

Previous post (part 1 of 2)
June Home Sales: Housing Market Ups and Downs Seen in Pockets of Metro Washington DC

---

PART 2 of 2

Buying Opportunities in Fairfax

In the previous post, we look at the market absorption rate of a particular area. We'll do the same for this post.

The neighborhoods that have absorption rate 5+ months - are buyer's market. Under 5 months going to benefit the sellers. This is a simplified approach of looking at which neighborhoods are 'good' buys. However, we don't use the price point. Average prices are varies. For example, McLean average sold prices is higher than Lorton.

If a neighborhood still a buyer's market and it happens in your price range, move forward and take advantage of the situation. Translation: Bring all offers! Many of the sellers are ready and willing to 'negotiate' with you, Mr. and Mrs. Buyers.

The current market conditions a hood in now - might not last forever!

Spotlight: LORTON

Market absorption rate 7.1 months. The worst market in Fairfax. On the other flip of the coin- it's a great buyer's market. The absorption rate tells you more accurate picture of how long will it take to sell all homes in a specific area.

For this neighborhood, it will take 7 months to deplete the inventory with assumption that no new homes coming on to the market. Buyers: This is the neighborhood where you want to focus in finding homes. Think about this, so many homes out in the market. Easy access to transportation, and straight down I-95 to DC, Alexandria, Tysons Corner and other employment centers. Lorton, is an upcoming neighborhood. Anxious sellers should work out the deal with you.

Market Indicators

• Available (on the market): 308 homes.
• Solds 30+ days: 30 homes.
• Under contracts 30+ days: 43 homes. 

Market Absorption: Fairfax Neighborhoods

1. Great Falls (5.77 mos.)
2. Reston (3.44 mos.)
3. Centreville (4.8 mos.)
4. Oakton (2.45 mos.)
5. Vienna (3 mos.)
6. McLean (3.5 mos.)
7. Annandale (5.3 mos.)
8. Burke (4.35 mos.)
9. Herndon (5.3 mos.)
10. Springfield (4.8 mos.)
11. Alexandria includes City of Alexandria (4.6 mos.)
12. Falls Church includes City of Falls Church (4.2 mos.)

bold: indicates strong buyer's market (over 5 months absorption rate)

District of Columbia

Clearly for anyone to wait that DC prices going to go down a little bit more- they're in it for a surprise. Data gathers from MRIS, GCAAR indicates that DC actually is seller's market. The total number of available (active) listings as of today (7/19) is 2623 homes. Over the past 30 days the number of homes went under contract is 1092 homes, and sales 609 homes.

Here's what interesting. The total number of homes under contract in June 2007 declined by 10.2% from 2238 to 2010 homes. But, prices remain strong. The average price for single family increased from $644,115 to $679,088 or 5.4% over the same period June '06 to '07.

If prices is any indication, you can see from the chart below that condo prices also creeping up. The average price up from $406,501 in 2006 to $413,531. Still below the peak of 2005 at $426,576.

click to enlarge (+)