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

Arlington Farmers Market with Tallula's Exec Chef

For Barry Koslow's recipes on fresh pickles and grilled ratatouille, go here.

Virginia Lines up for Stimulus Fund's High-Speed Rail Projects

According to Governor Kaine, Virginia has submitted pre-applications for more than $2 billion funding for high-speed rail projects under American Recovery and Reinvestment Act's or Stimulus funds for high speed rail.

Virginia has two types of projects lined up. The ready-to-go projects, or Track 1, is focused on I-95 corridor connecting Washington DC and Richmond, which is the state's most congested travel corridors. Strategically, it will also connect Amtrak's Northeast Corridor (see map on right) and the Southeast High Speed Rail Corridor (below), in which the state has invested some $197 million to this corridor - to date.

The projects, via Gov. Kaine office.

• Arkendale to Powell’s Creek: $72 million in rail infrastructure improvements between Fredericksburg and Prince William County, including 11 miles of third track; proposed for Round 1 funding under Track 1 as a “ready to go” project. This project could advance independently of the Washington, DC to Petersburg corridor program defined below.
• Washington, DC to Petersburg: $1.57 billion in rail infrastructure improvements such as additional tracks and signal, station and rail yard improvements; proposed for Round 1 funding under Track 2 as a corridor development program. This project includes Arkendale to Powell’s Creek as described above, in the event that FRA elects to fund the project as part of a corridor development program.

Southeast high speed rail corridor, via sehsr.org.

High speed rail in the southeast will mean top speeds of 110 mph and average speeds between 85-87 mph. Virginia, North Carolina, South Carolina and Georgia have joined together with the business communities in each state to form a four-state coalition to plan, develop and implement high speed rail in the Southeast. The system will be developed incrementally, upgrading existing rail rights-of-way.

Read more about the corridor, here and here.

Looking at both maps, based on location alone, Virginia is on strategic located to take advantage of the Stimulus funding for high speed rail that connect tracks up and down East Coast.

Next in line, track 2, is: Richmond to Hampton Roads corridor. 

Richmond/Hampton Roads: $330-$844 million in rail infrastructure improvements to support the introduction of high speed rail service between Richmond and Hampton Roads; proposed for Round 2 funding under Track 2. This project is proposed for Round 2 since a federal Environmental Impact Statement is currently underway to select the high speed route, and should be completed prior to Round 2 grant awards. The cost is expressed in a range since the exact route has not yet been determined.

The timeline for these projects: Round 1 is in Fall 2009 and round 2 in Spring 2010. This high speed rail project is for the next Governor of Virginia to complete... (Kaine's term is up this year).

I can see more TODs sprouting up here and there along DC-Richmond corridor..

image: Treehugger

Weekly Roundup

Researchers: "Few Preventable Foreclosures"

From Manuel Adelino, Kristopher Gerardi, and Paul S. Willen writing at the Boston Fed: Why Don’t Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization.

Simple Ways to Cool Your Home and Save Big

One of the easiest ways to keep your cool in the summer is to use fans. In addition to moving air around, which makes us feel cooler, fans can, if properly located, purge heat from a house and draw in cool outside air.

Vancouver May Require Condos to Install Electric Vehicle Charging Stations

In its self proclaimed quest to become “the world’s greenest city” Vancouver is considering adopting legislation that would require any new multi-family dwellings (condos) to have electric vehicle charging stations. Should this pass, Vancouver would be the first city in Canada to have such a policy. Vancouver already requires one and two dwelling homes to have plug-in infrastructure.

Check out HOA finances before buying condo

Thanks to the economic downturn, condominium prices are dropping across the country. But if the homeowners association is in the red, a condo that looks like a steal can quickly become a money pit, leaving buyers on the hook for a lot more than they had bargained.

Latest news on Chinese drywall: Problem spreads nationwide, fire concern arise

Investigations into problems associated with drywall made in China are continuing and, according to this new post on the Consumer Reports Safety blog, "two fires are being investigated by the [U.S.] Consumer Product Safety Commission and the Florida State Fire Marshal's Office to see if toxic drywall contributed to the blazes."

Hip-Hop Home Improvement

Rapper 50 Cent knows a thing or two about money management. The Queens native pulled in $170 million over the past two years--more than any other hip-hop artist--thanks to sales from his G-Unit empire and a lucrative investment in VitaminWater. But 50 has at least one high-priced weakness: home improvement.

A Smart Green Living Zero Home

This is the Living Zero Home, which was commissioned by the U.S. Department of Energy and built by All American Homes.  The home was on display in Chicago last weekend and will move to about fifteen other destinations throughout the year, including Louisville, Greensboro, Atlanta, Las Vegas, Los Angeles, Dallas, Phoenix, and Denver, among other cities.

Cracked Houses, What the Boom Built

Robert and Kay Lynn lay in bed shortly after closing on their new home in the Blue Oaks subdivision in Rancho Murieta, Calif., abutting an 18-hole golf course. They were listening to the “pop, pop, pop” of what they thought were acorns falling onto the roof.

... Links from Around Washington DC Region:

• Lots of supply little demand [Fairfax Times]
  
• Herndon looks at kiss-and-ride Development [Fairfax Times]
• Northern Virginia June Housing Sales [No.Va. Housing Bubble Fallout]
• More on the Hine Development (Capitol Hill, DC) [Rebuilding Place in the Urban Space]
• A Small Town Few Want to Leave [Washington Post]
• Virginia gets $37.6M in energy stimulus funds [Washington Biz Journal]
• Trinidad Checkpoints Ruled Unconstitutional [DCist]
• County Officials Hoping to Take Control of Columbia Pike [Arlington Gazette]
• Metro to Move Forward in Upgrading Stairwell at Vienna Station [Fairfax Gazette]
• Virginia gets in line for high-speed rail funding [Richmond Times-Distpatch]

More Short Sale (on the Market) than Foreclosure

If MRIS data is any indication, distressed properties trending short-sale could be a big threat for regular sellers. Regular sellers have a hard time competing with distressed properties owners, especially if these properties are priced way below the norm for that hood. On the flip side, this kind of condition represents opportunity for buyers. For the most part, short-sale properties tend to be in much better shape than foreclosures, especially if there are people still living in it, either owners or tenants. And short-sale and foreclosure are competitively priced.

From the resale front, this month market conditions for distressed properties weighs in more towards short-sale than foreclosure. That means many more 'underwater homeowners' are quickly trying 'to get out' from their situation. A recent study finds that no owners would default on a loan if they see their home equity drop only by 10%. However, 17% of household would default (walk away) even if they can afford to pay their mortgage, if their home values fall 50%. Unfortunately, in some pockets of our neighborhoods, prices have fallen below 50%.

Here's the data I extracted from  MRIS.

Active listings for NVAR market (Arlington, Alex., Falls Church, and all of Fairfax)

Total listings         4,507

Foreclosure        221  (4.9% of all listings)

under $500k       182

over $500k         39

Short-sale       601  (13.33% of all listings)

under $500k       491

over $500k        112 

Under contract            1,966

(total short-sale doesn't add up to 601 - something is missing here.. oh well)

You can see from the data, definitely the number of short-sale properties on the market crush foreclosures.

Here's the numbers for Prince William county, that used to be 'the' place to find foreclosure. Look at this stat. It's competitive with their adjacent neighborhoods north of I-95 (above).

Total listings 1,870

Foreclosure      96

Short-sale   239

Moreover, distressed properties over at Northern Virginia, on average carries higher price tags than at PW. Over in Fairfax, you can find homes on foreclosure list goes from $52k, condo in Alexandria - all the way - to $2.4M, a mansion in McLean. What striking is one-fifth of short-sale properties, are properties over $1M! Those custom built homes are on the market now at reduced price. Even a new home (never been lived) built by an architect over in my neck of the woods, is short-sale. This was a tear down. Think the architect got caught in the downturn..

Washington DC:

Total listings   2,523

Foreclosure 158          (6.2% of total listings)

under $500k 154

over $500k      4

Short-sale 168 (6.6% of total listings)

under $500k 152

over $500k   16

Under contract 93

I think for the lenders, short-sale is cheaper than going foreclosure. I heard sometime before from a lawyer, that foreclosure proceeding costs lenders on average $60k. (will be higher in some big cities).

2 Things about Short-Sales

Besides all the things that you've read and hear ( here, here) lenders are getting better in processing short-sales. Short-sale can be a good opportunity (not for everyone, though). I know that's me saying it. However, the process of getting short-sale a done deal.. still take time.

Here are the dollars-and-cents dealing with short sale.

#1.Successful short sale really depends on how good the listing agent is.

I had represented buyers in multiple short-sale transactions. Dealing with a good, experienced 'short-sale' listing agents make a big difference. There are companies doing just short-sale businesses. You'll find that some settlement companies also take a proactive approach - when it comes to dealing with the lenders. I had a case, where the banks approved it in a matter of 4 weeks! Which is rare, really rare.  The listing agent has been doing a lot of short-sales, so she knows what it takes to close the deal. On top of that, my client gets closing assistance, and the  first mortgage lender agreed to pay the second  mortgage.

And my client asked 'why?' ..that fast. Sheesh..

#2. The listing price sometime is not the closing price you ended up with.

If the property still in good conditions and priced competitively, it'll invite contracts. So, multiple buyers compete for 'that one' house. Higher demand drives up its price. On the other hand, since a short-sale transaction has to be approved by the bank/s (holding the loan/s) or what the industry call 'third-party-approval' the list price might not be the one bank wants to approve. In MLS, there are two kinds of remarks, one for agent and one what the public - you - see. The one for agents have all kinds of remarks that buyer agents read before proceeding.

The take home message is: Don't get too excited when you deal with short-sale (even after contract is ratified). You should continue looking, just in case.. The contract you're putting on - doesn't go through. (Or, your lender refused to financed your purchase).

Because things do happen..

--

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How to Fix Mold

Mold is a common problem you find in distressed properties (bank-owned and the like), esp. if properties been on the market for a while. Most likely is these properties are vacant.

Here is a quickie way to trouble shoot mold..

How to Access $8,000 Tax Credit for Dowpayment & Closing via VHDA Loan Program

A while back HUD announced that FHA will allow state housing finance arms to provide second mortgage so you can use the 'anticipated' $8,000 tax credit towards your downpayment and closing costs to buy homes with FHA-insured loans. (h/t NAHB)

The big question is "how do you do it?" Yup- that is how. Last weekend I was out with a client. We talked about this tax credit thing. (This client used to work for IRS). She says that "she is familiar about how tax credit works however, she found out that none of the lenders she talked to, know how to do it. If such thing is available, she would like to apply for one."

The thing with tax credit is, you have to file your income tax first before you can get the credit. So, if we're talking about the deadline for the credit, closing by November 30, 2009 - you have a problem here. Because technically, you can't access the credit before you file your taxes. See how it's complicate things a bit..

Don't worry now. We've got the the answer to this "how" can you access the credit for downpayment and closing. It is done through state housing agencies. According to NCSHA (Natl. Council Housing Agencies), a number of state housing agencies offer this kind of program: Colorado, Delaware, Idaho, Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, Tennesse and Virginia. (if it's not listed here, there's no such thing available in your state).

It's just because I do biz in Virginia, will talk about VHDA program. This is how the program works, via VHDA:

• Eligibility: Borrowers must meet federal First-time Homebuyer Tax Credit requirements as well as VHDA's requirements regarding first-time buyer status, income limits, sales price, etc.
  
• Maximum income: The combined income of all household members may not exceed VHDA's maximum income limit. For example, Wash DC MSA, 2 or fewer can't make more than $86,900. (more about max. income limit, here)
• Maximum sales price: On the 2 or fewer max. income above, the maximum sales price is $408,100.
• Max. sales price/ total loan amount: The combination of 1st and 2nd loans cannot exceed VHDA sales/ income limits.
• Minimum credit score: 620.
• Qualifying ratios: FHA ratios of 31% payment-to-income/ 43% debt-to-income apply. 
• Required borrowers funds: Must have a minimum of 1% of the sales price "VERIFIED" as their own funds to be contributed towards the transaction or have it available as reserves.
• Pricing options: Pricing options are available (think this info is for lenders). Rate on first and second mortgage will be the same (this is good!). No points or origination fee charged on the second mortgage. - emphasis added

So the program is designed to fill the need of first-time buyers. Oh, not all FHA lenders work with this kind of program. Only VHDA approved lenders offer their products.

The catch: you have to take a "free" VHDA homeownership seminars. That's it. Here is where you find out about the classes..in Northern Virginia.

DC Region Condo Shortage (possible) in 2010..

Sounds like the tide might be turning in 2010 if sales continue at current (robust) pace. The Washington Biz Journal reports that new report from Delta Associates shows that prices down and sales volume exceeding 600 units for the first time - since 2007. The two factors contributed to the high sales volume are 1) historically low interest rates and 2) tis' busy buying season.

On the other hand, supply might be on the low end come 2010 said Greg Leisch, Delta CEO. Because it takes time to build new condos. So, take note of this.

"Greg Leisch said the dwindling pipeline — now at its lowest in five years — will likely result in a shortage by 2010, causing effective prices to rise. Prices tend to rise when there inventory-to-sales ratio is at three years or less. It is currently at 1.7 years in Arlington and Alexandria and 2.8 years in D.C. For the region, it is 5.1 years."

Remember those condos (Park Crest, Zoso, Io Piazza and more) that were converted to apartments because of market conditions, there's possibility that those apartements be converted back to condos to fill the gap...

[via Washington Biz Journal]

First American CoreLogic: Wash-Arlington-Alexandria Home Prices Decrease..

According to the latest LoanPerformance Home Price Index from First American CoreLogic, even though Washington-Arlington-Alexandria home prices have decreased by -13.84 percent in April, it's an improvement from March. In March, the home prices showed a decrease of -14.09 percent from a year ago. Across the U.S., the national housing price fell -10.2 percent in April compared to a year ago, which represents the smallest year-over-year declined in 2009.

The LoanPerformance HPI is a repeat-sales index that tracks increases and decreases in sales prices for the same homes over time, which provides a more accurate "constant-quality" view of pricing trends than basing analysis on all home sales. The LoanPerformance HPI provides the most comprehensive set of monthly home price indices and median sales prices available covering 7,649 ZIP codes, 958 Core Based Statistical Areas (CBSA) and 676 counties located in all 50 states and the District of Columbia.

 

for larger view, click here

The top ranking states for 'annual depreciation' this year are Nevada (-26.1%), Florida (-23.2%) took second place from California, California's home situation have improved (-22.7%), Arizona (-20.5%), and Pres. Obama's home state, Illinois in fifth rank (-17.4%).

Mark Fleming, chief economist for First Core Logic, says that..

“There is still a great deal of uncertainty with the housing market and the economy in general. But the rate of change in home price declines is beginning to show signs of not only a bottoming, but an improvement in both nominal and real terms, which is the more important indicator because real prices adjust for the distortions caused by inflation or deflation.”

Furthermore, according to the study, since U.S. home prices peaked in 2006 (over here in DC region, I think it's in 2007), national home prices have declined 21.2 percent on cumulative basis and currently down to the lowest price level in 5 years.

For more details here..   

DC Housing and Transportation Calculator

 Over at the Urban Land Institute, they have a housing and transportation calculator, a neat tool to help you calculate the combined housing and transportation costs in Washington DC region. 

The Housing + Transportation Calculator was developed to help individuals, households, planners, and municipalities understand the true costs of housing and transportation, as well as how these costs can vary from place to place.

Okay so I play around with the calculator using a couple different locations, metro accessible, inside vs. outside the beltway. In my example, I use hoods inside the beltway vs outside. McLean, Falls Church zip code 22043, Arlington's Pentagon City zip code 22202, Columbia Pike (which has no close Metro station but accessible by metrobus) zip code 22204 and Alexandria City for inside the beltway hoods vs. Burke, Reston in Fairfax County and Bristow out in the neck of Prince William County for outside the beltway hoods.

Here's the comps for one person with one car:

click on image for larger (+) view

So you see the two components housing and transportation can make a difference in your living style. Transportation can make a big ding to the total cost of owning a house. The farther out you live, the more you will pay for transportation. (calculator based on $2.4 of gas per gallon).

Think gas back at $4 a gallon..

The other thing is. When you look at Alexandria City vs Arlington, they're pretty close together places. However, because housing cost is relatively cheaper, your money stretch a little bit farther in Alexandria than in Arlington. Reducing the two costs would be the "ideal" situation.

In addition to the two costs, there are other info as well, like the transit connectivity (bad vs good), density, and more - you can find there.

To create your own comparison, you can go here.