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

Tysons Corner, the "New" Downtown

Fairfax County EDA boss is very confident that with Dulles Metrorail coming in to Tysons, it will make Tysons Corner the new downtown.

 The new Metro line to Tysons "will make the area explode,” Fairfax County Economic Development Authority CEO Jerry Gordon tells us. That’s saying something considering Fairfax already has more jobs than DC. Jerry politely turns the knife a bit more: “We’re the new downtown.” You can make statements like that with less than 5% unemployment (up from 1% in good times) and companies such as VW and Hilton moving their HQs to your community. Speaking of which, Jerry says FCEDA is in talks with a couple other companies “that are either household names or could be in 20 years.”

[via Washington BisNow]

Just fact checking Gordon's statement on jobs.

(click on image for larger view)

So, that's true Fairfax has more jobs than DC. (DC unemployment is twice of Fairfax).

image: Google

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..

At a Glance: Vienna

Vienna is unique because it has two metro stops (Dunn Loring and Vienna), there's the Town of Vienna and there's the rest of it (including Merrifield). In April of 2009, Fairfax Board of Supervisors created a Community Development Authority for the proposed Mosaic-Merrifield development. This Merrifield redevelopment deserves a revisit.

 Here's a little bit of history for Vienna, via Wiki.

The town was originally called Ayr Hill, after the name of the house built by early settler John Hunter, who named it after the place of his birth, Ayr, in Scotland. The name of the town was changed in the 1850s, when a doctor named William Hendrick offered to move there if the town would rename itself after his hometown, Vienna, New York.^[5]

The three zip codes for Vienna are 22180, 22181 and 22182. Below is comps for the three zips for the month of May.

Vienna

Zip code: 22180                               2009                           2008                 %

Ave. sales  price                                $520,835                 $566,265        -8.02%

Median sales price                           $450,000                $529,950        -15.09%

Total units sold                                         23                              26                 -11.54%

Days on market                                       134                             68               

Ave. list price for solds                 $560,661                  $611,798       -8.36%

Zip code: 22181

Ave. sales price                                $554,367                 $603,329      -8.12%

Median sales price                          $557,500                 $572,500     -2.62%

Total units sold                                       24                               24      

Days on market                                      75                               58

Ave. list price for solds                $587,321                   $632,396     -7.31%

Zip code: 22182

Ave. sales price                               $672,560                  $846,776     -20.57%

Median sales price                         $629,000                  $795,000    -20.88%

Days on market                                     25                                17

Ave. list price for solds                $716,189                   $920,553     -22.2%

Clearly data shows the higher priced market got hit the hardest. That is, zip code 22182.  Like any other hoods in the Metro DC area, Vienna is not immune to foreclosures, short-sales - because in some pockets - you can still find distressed homes in the $200's range.

More info on Vienna's demographic, population, education, etc. here and here..

data: MRIS

DC Condo Sales May 2009

Since we're in the mood of condo today, might as well take a quick look at condo sales in Washington DC. This is quite interesting. Just by looking at the numbers, DC condo market still struggling, maybe because prices still up. The average condo sales is up from $411,663 a year ago to $433,421. The median price is flat at $360,000. The same from last year.

What's good about condos on the market in DC is this: Inventory drops -3.9 percent from 1,530 to 1.471 units. Other than that, market kinda slow.

On the sales side. The number of condos sold last month declined -20.1% from 259 to 207 units. Year-to-date sales volume dips -23.1% from 1,053 to 810 units. Furthermore, about 79 percent of all condo sold in DC in May are condominium under $500,000!

Break it down into price range, looks like the million dollar (luxury) condos are the winner in this market conditions. Those condos over $1.25M showed some sales improvement. From the range of $1.25M to $1.49M, sales up are 150%  and over $1.5M condo - sales are up 140%. While condos between $150k to $800k are all saw sales in the red. What an interesting trend. This is pretty amazing..

 

click on image for larger view (+)

Who are those million dollar buyers? Obama people?

So, apparently low interest rates and robust buying season (like what Delta Associates condo report showed)  don't help DC condoscape that much..

data: MRIS

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]

Weekly Roundup

Which will hurt credit more, a bankruptcy or a foreclosure?

WASHINGTON (MarketWatch) -- Question: I am in a quandary. I don't know which will damage my credit score more, allowing my lender to foreclose on my house or declaring bankruptcy to buy myself a little more time. So my question is this: Which does more damage to a person's credit score, foreclosure or bankruptcy? And why?

Stay Cool, Naturally

Conserving energy rather than cranking up the AC will not only help cut greenhouse gas emissions but also keep your money in the bank. More than 40 percent of a typical family’s costs are spent keeping their home at a comfortable temperature.

Blight's Bargain, the Unfortunate Location

A WEEK after he moved into the circa-1800 farmhouse he had always dreamed of owning, David Evans spotted something glinting in his backyard. Within two hours, he had unearthed 19 spark plugs.   

Bill Gates Buys Historic Wyoming Ranch

Bill Gates, the world’s richest man, has reportedly purchased Irma Lake Lodge, a famous Wyoming ranch once owned by William “Buffalo Bill” Cody, who may have been one of the earliest successful entrepreneurs.

Anyone Want to Buy a Condo? Anyone?

Potential condominium buyers are facing a tough choice right now: new or used? There are deals to be had on new condos, as developers heavily discount units to move inventory. But getting a mortgage is tough.

Green Cubed Modern Eco Lux Home

This is the Green Cubed house, which was designed by Nelse Design + Build.  Located on an infill lot in the Phinney Ridge neighborhood of Seattle, the 5-star home was recently the superstar of a Green Built home tour.

HUD Offers $58M for Housing Counseling

The U.S. Department of Housing and Urban Development today announced that more than $58 million is available for a broad range of housing counseling programs to help families find and preserve housing. The funding is an increase of $11 million, or 23 percent, over last year.

The best U.S. transit systems you never knew existed

When it comes to public transit in the U.S., there are certain predictable all-stars: the Metro in Washington, D.C., is convenient, efficient, and clean. The anthropomorphically nicknamed El and BART in Chicago and San Francisco are legendary. And everyone knows it’s easier to navigate New York City without a car than with one.

Foreclosures grind on as lenders fail to modify loans

The Obama administration's $75 billion program to reduce foreclosures has been beset by backlogs and delays, leading many overstretched homeowners to complain about unreturned phone calls and inaccurate information from lenders, while others say they were denied help for reasons that weren't clear.

NEWS FROM AROUND GREATER DC REGION:

• Inner Harbor Ritz condos: 21 sold, 171 to go [Real Estate Wonk]
• Region's Economic Performance Ranks High [Washington Post]
• D.C. convention center hotel deal close [Washington Biz Journal]
• Drive in Traffic, Get Paid [We Love DC]
• Study to look at biker, walker paths near BRAC in Bethesda [Gazette.net]
• 26 Reasons to Love Washington [Washingtonian]
• Va. close to finalizing HOT deal on I-95/395 [WTOP]
• Dulles Rail focus turn to Herndon [Examiner]
• Color Primer [Washington Spaces]

What is Seller Subsidy?

The last I checked, we are still in a buyer's market. So these days is pretty common to see buyers got some sort of seller subsidy or closing cost assistance. (Whatever term you want to use, it has the same meaning)

What qualifies as seller subsidy? Here is the paragraph on the subsidy from regional contract (DC, MD, VA). (Paragraph 10 for conventional financing).

Based on the financing terms specified in this Contract, Seller with pay at Settlement  $-------- (whatever amount or percentage of sales price)  toward Purchaser's charges, (including but not limited to loan origination fees, discount fees, buy down or subsidy fees, prepaids or other charges as allowed by the lender). Purchaser will pay all remaining Purchaser's charges. If applicable, Purchaser will pay insurance required by lender. It is Purchaser's responsibility to confirm this with his lender, if applicable, that the entire credit provided herein may be utilized. If lender prohibits Seller from the payment of any portion of this credit, then said credit shall be reduced to the amount allowed by the lender. 

Got hung up on some terms? Terms explained.

The term "points" is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points also may be called loan origination fees, maximum loan charges, loan discount or discount points.

A typical amount of assistance is 3% of sales price, though a few lenders allow it to 6%. If you're buying a $400,000 home, you can ask up to $12,000 for seller's credit. It doesn't mean that you're going to get it. You're just ask, okay. It's worth the asking. (Yes, you can also ask banks when buying foreclosure).

Seller's subsidy is a 'negotiable' item. What comes next in money-related-thing in a transaction is: 'Home inspection.' If you're doing home inspection, and sellers know that they might get hit with some repairs on the house, you won't get the full amount. Unless a) sellers are desperate, or b) sit on decent profit margin (after expenses). 

It depends on the type of loan you're financing the purchase with - if you ask for subsidy - it's important to ask your lender before hand the max. amount. Lender is a gate keeper in this case.

Oh one more thing. The funds credited at settlement from the seller (on your behalf) either you use it - or - lose it. If you asked more than you need, you will lose the rest. The balance goes back to the seller. So if you asked and received $12,000 credit from seller, but at the end of the day your expenses are not more than $10,000 - seller will get back the $2,000 at closing.

Dulles Metrorail TOD Projects (update)

Real Estate Bisnow Washington reports that Comstock Partners planned to build two TOD projects, Reston Station and Loudoun station, both slated along Dulles metrorail corridor. Comstock plan to build Reston Station on top of the 2,300 parking garage over at Wiehle Ave. stop. They've received the development rights but still have to secure rezoning and get site plan approval sometime in 2011. 

The second project, Loudoun Station is a-50 acre mixed-use project at the Silver line last stop, at route 722, connecting Dulles airport and Loudoun county. This one has been rezoned and approved for 3.5M SF that will have 1,500 apartments, 320,000 SF retails, entertainment, a hotel and offices.

[via Real Estate Bisnow DC]

images: Loudoun Station

Foreclosure Goes Upscale: Business Week

The second wave of foreclosures? Mortgage Bankers Association report pointed to that prime loans no longer immune to foreclosures. And then there is this:

According to research by the National Association of Realtors, there are enough $750,000-plus homes on the market to cover more than 40 months' worth of demand at the current rate of sales. That's four times the rate of oversupply in the housing market as a whole.

[via Business Week]

Time to buy?