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

FTA Commits Funds for Dulles Rail

MOVING forward. It looks like we'll finally get the funding for Dulles Metrorail project. From the U.S. Sec. of Transportation blog. [Yep, Sec. Peters' blog that is.]

In January, I expressed some serious concerns about the proposed Metrorail extension through Tysons Corner.  After all, when taxpayer dollars are at stake, we want to be sure that they are spent wisely and on sound investments.

To their credit, Governor Tim Kaine and the members of Virginia’s Congressional delegation have demonstrated an overwhelming commitment to spearheading the changes needed to keep this project moving forward, most notably with regard to the proposal’s cost effectiveness and to securing a local financial commitment.

Earlier today, Federal Transit Administrator (FTA) Jim Simpson announced that we have sent the required 10-day notification to Congress signifying our intent to move this substantially-improved proposal into the Final Design stage of FTA’s New Starts Process. This means that FTA will commit $158.7 million to use toward completion of a financial plan, construction plans, detailed engineering specifications and cost estimates, as well as other technical requirements.

This project is much better today than it was in January. While today’s action is the first step toward final approval, it should by no means be seen as a guarantee of full funding. We are looking for more progress in addressing Metro’s state of good repair and more action on reducing the risks posed to taxpayers by the potential for cost overruns and schedule delays.

Governor Kaine is guest blogging today about the Metrorail extension project through Tysons Corner on DOT’s new Fast Lane blog. I welcome him to the Fast Lane.

-Secretary Peters

Where are the speculators? Hello. Reston, Herndon foreclosures look 'attractive' now.

Fed Funds Rate at 2%

THE Fed cut the fed funds rate again 0.25% to 2% cited weak economy, inflation, and efforts to boost market liquidity. This is the interest rate that banks charge each other for overnight loans.

In case you're wondering, the banks won't cut your credit cards interest anytime soon and your mortgage interest will likely stay around where it is now.

FOMC statement is available here.

Spectrum Condo

Spectrum condominium is a new mixed-use with green features over at City of Falls Church right off Route 7 or Broad Street as the locals call it. There are 189 condo units in the 7-story building along with retails and offices. It is build by the same developer, Waterford, which builds the Broadway condominium a few years back, which is up the street. Easy access to George (Falls Church CIty feeder buses) and to major roads I-66, Rt. 29, Rt. 7. A short hop to Tysons Corner, Arlington, and two metro stations East or West Falls Church. It's also walking distance to shops and local restaurants.

flooring: bamboo

flooring: cork

This building is not LEED certified, however it does offer some of - the 'green (eco-friendly)' elements that to a certain extent commonly found in buildings that are certified - in addition to the features you seen in other development (non-green condos), like granite counters, tile floors and tub surround, stainless steel appliances, 42" cabinets, and berber carpet.

Here is some the green and sustainable features this condominium offer:

• Green roof
  
• Energy-efficient appliances (refrigerator, washer/dryer) including low-flow toilets.
• Bike rack (was a pre-requisite in counting LEED points)
• Energy-efficient central hot water, natural gas heating and electric air
• Bamboo or cork flooring
• Building was built with bricks which come from local supplier

A little bit about benefits of green roof for a building: 1) Protection for the roof membrane - extend the life of the roof, 2) Savings on energy and cooling costs, 3) Insulate sound, 4) Reduce the size of HVAC equipment, 5) Meet regulatory requirement for storm management, and 6) Potential to eliminate roof drains. So for the owners you get the benefit of low utility bills which is nice.

Each home gets one underground car garage and if you need additional parking space, it comes with a price tag of $18,000, which is on the low end - in comparison to other places like Arlington and Washington DC.  Choices available from 1BR, +den to 2BR, +den and penthouse. Living space ranged from the smallest 1 BR 814 s.f. to 1,663 s.f. for the 2BR penthouse.

Amenities include fitness center, courtyard garden, lounge, theater room, bike storage room and internet business suite. Condo fees interestingly includes - almost everything from the basic (water, sewer, trash, snow removal, master insurance policy and CAM) to cable and internet access plus- heating and air-conditioning.

The question that always come up every single time is - what's the condo fee? At least over here because of the energy-efficient features (and green roof) it offer, you can be assure that you won't see big jump on your condo fee at least for a couple of years. The one thing lacks, is installation of solar panels on the roof. With PV installation, it could really make this condo the 'plus-plus advantage' versus other condos in the area. Condo fee starts from $331 to $562 per month (includes everything). Not bad. (I have seen older condos with $400 to high $700 condo fee a month that includes utilities.) Throw in a bonus perk there for secured access and  on-site management (weekday).

Condos are priced from  upper $300's to high $700's. They're running current incentives for a $5,000 + 1/2% closing assistance if you use 'their' designated lender and title company.

Crossposted at New Homes Trekker

Silo Point (update-1)

A while back I posted a story on redevelopment conversion of an old grain terminal in Baltimore, Locust Point Grain Terminal elevator, the towering shell of what was once the world's largest and fastest grain elevator. The redevelopment is named "Silo Point."

The significance of this development is the history behind Baltimore's biggest grain elevator that morphed in to some sort of 'urban sanctuary' of luxury condominium. Silo Point is developed by Turner Development, will house 228 luxury condominiums which they call it 'bin,' a Sky lounge or owner's club with wraparound deck along with retails. It is located in Baltimore City's  neighborhood of Locust Point. Close to downtown Baltimore and historic Fells Point. Easy access to I-95, 295 and 695. 

A bit of history of the old grain terminal that becomes Silo Point.

"Constructed in 1923, the B & O Railroad grain terminal was the biggest and fastest grain elevator in the world. This beacon of international commerce jutted 290 feet into the air. Today, the 24-story tower rises above Baltimore's Harbor to mark a new era in modern living.

The grain terminal was the pulse of the world's agricultural market in the new age of industrialism. Every year, nearly ten miles of conveyor belt carried 3.8 million bushels of grain from rail cars to transatlantic cargo ships. These vessels transported the grain to ports all over the world."

As in the case of redevelopment, there are some features of the building that a developer chooses to keep and let go some. One of the architectural elements that they preserve is the grain elevator structure in which Chris Pfaeffle, architect of Silo Point, said as "the most compelling aspects of the structure is the vastness one felt when walking around both interior and exterior." The other elements they preserve is large octagonal columns throughout the main lobby. Residents will be able to look up and see the lit interiors of the grain silos rising 10 stories overhead. Awesome.

Furthermore, according to the architect's blue print, the columns in the lobby extend to lower level, which will house a fitness club, a business center, a billiards room, a wine club and gallery.

The additions to the building, including the elements interwoven with the remaining silos and a multi-story block on top of the existing tower, are being constructed out of concrete, glass, and various forms of corrugated metal. A 550-car parking garage, capped by two- and three-level townhouse-like structures, will be linked by a three-story glass bridge to the tower.

What's in it inside Silo condos? Each home will be a 'smart home.' It comes with window treatments with silent precision control and state-of-the art fiber optic wiring. You can also choose integrated modules and touch panels for all the tech you have, i.e. control lighting, temperature, I-pod docking stations, plasma televisions, and home theatre.

 

One note. I love the technology they offer inside the homes. The thing is - it's great to have all the gadgets in the world inside your home, however, I am bit surprised in these days and era of energy efficiency - this luxury condo don't really 'push the envelope' on efficiency. Aren't we supposed to be more energy efficient today than a year ago? Because it's possible to have them both ways if they really wanted to do it.

Amenities include 24/7 doorman/ concierge, fitness club, billiards room, lounge, conference rooms, retails, drycleaning laundry pick up, maid service (available), dog walking services, wine club, and room service (through area's restaurants). Choices, choices, choices. There are 30 different floor plans, ranging from the smallest 1100 to 5000 s.f.

Homes at Silo Point will be ready for delivery by summer '08.

 

Weekly Real Estate News Roundup

Lenders Swamped by Delinquent Mortgages
Seven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators.

The Fed's Subprime Suspect
These are anxious days for Ralph R. Cioffi, the former manager of the two Bear Stearns (BSC) hedge funds whose collapse last summer sparked the credit crisis.   

As Home Sales Plunge, Some Say the Crisis is Almost Over

Rebound coming any minute now... any second... Bueller?

How to Cultivate a 'Green Mortgage'
Recycling soda cans, using phosphate-free cleansers and making smart transportation choices can all improve the environment. But did you know that applying for a home loan also offers a chance to further the environmental cause?

What Drives Housing Cycle?
It's no secret that the U.S. housing market is cyclical and in the midst of yet another painful correction. The causes and characteristics of these cycles vary, at least in some respects, but the implications for homebuyers, home sellers and homeowners remain remarkably reliable as the cycles roll by.

Lending Tree Lead Data Stolen - Do You Know Where Your Social Security Number Is?
Talk about scary. We all knew that LowerMyBills.com and LendingTree.com provided for a ‘less-than-ideal’ customer experience as consumers got battered by hundreds of calls from rabid mortgage folks; but this announcement is just plain scary. Employees caught stealing data including consumer social security numbers at Lending Tree.

How to Go Green in the Kitchen
“Green is an approach that’s going to stay part of our design ethic,” says Connecticut-based kitchen designer Mary Jo Peterson. She believes that reducing waste and energy, reusing, and recycling are keys to a greener kitchen.

Homeowners Convert to Costlier Fixed-Rate Loans Amid ARM Fears
Mortgage refinancing in the U.S. is increasing as record numbers of homeowners dump their adjustable-rate mortgages for the security of a fixed loan.

First-Time Home Buyers' Few Options
Homeownership, the bedrock of the American Dream, is a bit of a nightmare these days for many first-time home buyers.

Pain of Foreclosures Spreads to the Affluent
This wooded town of roughly 60,000 on Long Island Sound — home to dozens of hedge funds, many millionaires and more than a few billionaires — is one of the wealthiest enclaves in the country. But even Greenwich, Connecticut is not immune to the wave of home foreclosures sweeping the nation.

Home for Sale by Any Means
For nearly two years, Adriel and Lance Bush tried unsuccessfully to sell their 1925 home in West Palm Beach, Fla.

When a HELOC Freezes Over
When Diane Carr, 55, received word in February that her home-equity line of credit would be canceled, she was dumbfounded.

FROM AROUND THE REGION: DC-MD-VA

Foreclosed Homes Attract Vandalism, Squatters
The growing foreclosure crisis has forced suburban law enforcement agencies to tackle a new challenge: policing empty houses.

Montgomery County Fairgrounds May Be Up for Sale
Sixty years after turning a swath of land in Gaithersburg into Montgomery County's fairgrounds, officials with the nonprofit agricultural center that owns the property say they are contemplating selling it and moving the fair farther north because of financial concerns.

Kettler Secures $217M for Leesburg Project
Kettler will get a hand from Sovereign Bank as it proceeds with a major mixed-use project in Leesburg.

Falling House Prices Take Toll in Va. Suburbs
Housing prices declined across Northern Virginia last year, with the outer suburbs leading the drop.

Luxury Housing Plans Revealed
As many as 485 new luxury apartments are being planned for two blocks of Baltimore's Brewers Hill neighborhood, the mixed-use redevelopment of two shuttered breweries.

Staff Draft Scales Back Accessory-Dwelling Proposal
The county government's housing staff is recommending that the County Board consider a proposed accessory-dwelling ordinance that is somewhat scaled back from a proposal forwarded to board members by the Housing Commission.

Getting Back Taxes from NVTA
On Feb. 29, one of several taxes levied by the Northern Virginia Transportation Authority, which were declared unconstitutional by the Supreme Court of Virginia, was the congestion relief tax.

 

Wash DC March Home Sales Saw Big Decline

It finally hits home. The March home sales for the District of Columbia feeling the heat from mortgage crisis. All of the indicators shows that the Nation's capital is not immune to the crisis.

We saw record decline for the month of March since 2004. The total number of homes sold off 39.82% from 653 to 393 homes for the month of March 2008. Average prices also declined. The average sales price declined 4.65% from $561,789 to $535,645. The same thing for median prices declined 8.06% from $434,500 to $399,500. And the average price for 'sold' properties declined 4.29% from $591,882 to $566,483.

On the other hand there's not much change in days on the market. On average, it's hovering around 80 days.

Condo market got through a big decline across the board on condos under contracts (or pending) and condos sold. The condo market shows that prices continues on a downward trend since 2005, while single homes show prices come down for the first time since 2007. When you look at average sales prices of condos, it gradually drops from the peak $426,576 ('05) to lowest $388,569 ('08). The bread-and-butter condos (for first time buyers) priced between the range of $149,999 to $499,999 - saw the number drops. Total condos sold down from 120 to 82 condos - for a good 31.6% drop of sales for the month.

A year ago there were no condo sale under $149,999. That was then. This is now. 7 condos priced under $149,999 were sold for the month. That just tell one thing - condo prices are falling.

Single homes on the other hand, after showing increasing price trends for the past three years - yes, March 2007 was 'the peak' in a 5 year stretch - to finally gave up. Inventories of single homes crept up to 8.9 months supply. (North of 5 months is a buyers market). The average sales price for single family homes declined from $687,459 a year earlier to $674,763 which was less than 1%. Luxury single homes market haven't had a slightest dent yet. The number of homes over $1.5M went under contract stay at 18 homes from last year. On a Y-T-D basis, it declines 12.8%. The year-to-date single homes sold off 31.1%.

It will be interesting to see how the Spring season goes this year with all the things going in the backdrop, the economy, gas prices, jobs, tight credit market, etc. For now, as of yesterday (4/23/08), DC has a supply of 6.1 months of condos and 8.9 months of single family homes - which points to a "strong" buyers market.

:: Virginia home sales, here.

Afternoon Cartoon

image: Slate

Greening the House

No, I am not talking about greening your house. But rather the other "House" or the House of Representatives. Capitol go green. Last summer the Senate and the House kicked off an ambitious plan to go green it's called "Green the Capitol Initiative"

The goals are 1) to be carbon-neutral by the end of 110th Congress 2) reduce carbon footprint  by cutting energy consumption to 50% in 10 years and 3) make the House model of sustainability.

Here is a clip on the initiative, via YouTube.

After all the House and Senate suppose to be the one leading by example, right?  The lawmakers are the ones helping to craft legislations at the federal level. If you read what they meant by the initiative - you'd see a whole range of targets and strategies to help them get there i.e. switching electricity from coal to gas, purchase renewable energy for use, purchase carbon offsets, etc.  And how did they do so far? Politico reported that the Senate has been struggling catching up with the House.

Signs of change abound in the House: elaborate recycling centers, Zipcars in the Rayburn garage and new energy-efficient vending machines with images of trees on the outside. The changes have been so pervasive that some Hill staffers have lodged complaints. The 100 percent recycled paper sold at the House office supply store jams their printers, they argue, and the store doesn’t sell regular paper.

But walk several hundred yards to the Senate side, and few similar changes are apparent. Life goes on much the same as it did before the Democrats came to power and pledged a greater focus on climate change and environmental issues. Coffee is still served in the same foam cups. And when you throw them out, they head to the landfill with everything else.

Apparently the Senate needs a little bit push than the House. Oh well.

And in case you haven't heard about House version of gourmet menu. Processed cheese been replaced with brie, buns have been pushed aside for baguette.  And more.

Crossposted at Talking Green

Stats: Q1 2008 Home Sales DC & N.Va

These numbers are based on home sold (all types) in Washington DC and Northern Virginia that includes Arlington, Alexandria City, Falls Church, Fairfax (all of Fairfax county), Fairfax City and Loudoun County.

The stats tell-it-all that the percentage of short-sale properties that actually went to closing - in other words get sold - is very very minimal. The ratio was actually way lower than estimated. For example, for the month of January in Virginia (slide #2) there were 20 short sale homes sold; 181 foreclosures (REOs); and 1429 conventional (non-distressed) homes.

Based on the information above, the ratio of homes sold short-sale was 1.3% of total homes sold while foreclosure sales was around 12% of all homes sold for the month.

My two cents worth. By looking at the hard facts above, short-sale has low ratio of success and that there are a lot more foreclosure homes (REOs) in Northern Virginia than in DC.

Data: Metropolitan Regional Information System (MRIS)

March Home Sales: Home Prices Lowest Since 2004

MONTHLY indicators from the Northern Virginia Association of Realtors on the resale side, shows that home prices, units sold were among the lowest except the homes supply that is on the rise. The average sales (units sold) for the month of March was the lowest in a three-year period from 2005 to 2008.

Let's see. The average sold price for March '08 was $476,342 a decline of 10.55% from previous year. The average home prices from 2005 to 2007 period swing from $504,081 in '05 to $535,633 in '06 and $532,517 in 2007. You see the fluctuation in prices contrary to popular belief, the 2005 (hot market) price was lower than '06-'07. Hmm, if that is an indication, are we going to see more homeowners under water here?

On a month-over-month, the total number of homes sold was the lowest since 2000.

image: NVAR

On the resale side, Northern Virginia sold a total of 1,250 homes in March. Compare that to the same period during the peak market the total number of homes sold in 2004 when 2,323 homes changed hands, and as recently as last year 1,752 homes sold - that's a decline of 28% from the same period last year. The average list price for solds (when agents listed them) declined 8.02% from $561,788 to $516,729 and goes with it on the averages, this year's breed of buyers paid 92.18% of list price this year as oppose to 94.79% last year. Another indicator - the number of days on the market - hasn't changed that much it is still hovering around the 100 days range.

NORTHERN VIRGINIA M-O-M HOME SALES TRENDS

We can't hardly see the stats for Falls Church, that's because it's a tiny hood in comparison to other jurisdictions in Northern Virginia corridor.

You're looking for opportunities? Here's one of the signs to spot 'opportunities': Look at the mo. supply of homes indicator. (We go back a few years and see patterns of increasing supply of homes on the market.) When the supply of homes months is over 5 months, that's a sign of a buyers market. When it drops to less than 5 months, it's a sellers market. As you can see below Arlington - is the 'only' hood trending buyers market (at least for now). Homes inventory correlates with prices.

When you see that the home supply drops, you better hurry up and make the move. Because opportunities can disappear without warning! You just have to stay alert on this. For market outlook, check out data [pdf] from George Mason Center for Regional Analysis (CRA).

Take a look at Springfield, one of the ground zero hoods for distressed properties in Fairfax county, VA (short sale, foreclosures). Last I checked in March, there were 445 actives, 81 homes under contract and 58 homes sold - for an absorption rate of 5.4 months - leaning to a sellers market. I've talked about short-sales low ratio of success in earlier post, you don't have to look far just look at the hard facts below.

Short-sales: Springfield (as of March 2008)

Actives 21 | Under contract 5 | Sold 2

Q: What's the 'success ratio?' Meaning - buyers of this kind of properties actually go to settlement (closing). 

A: It's less than 10%!

So much for short-sales. Again, the rule of thumb when dealing with distressed properties, especially short-sales - ask "hard" questions before proceeding.

data: MRIS, NVAR

:: We'll look into Washington DC stats sometime this week. Check back later.