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

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 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

America's Most Expensive Homes

There's been a lot of denial among luxury homeowners. In 2006, it was thought that the luxury market wouldn't suffer the same fate as the broader market.

The State of the Nation's Housing 2009 report gives U.S. market mixed grades

The nation's housing industry should remain mired in an epic slump for the rest of 2009, but the longer-term picture is not all doom and gloom, according to the "The State of the Nation's Housing 2009" report, to be presented on Monday by Harvard University's Joint Center for Housing Studies at the Ford Foundation in New York City. (We'll have more news from the event later this week.)

41 Charged as Mortgage Fraud Hits Condos and Suburbs

Federal law enforcement officials recently announced charges have brought against 41 defendants in five separate cases in Chicago. The cases involve more than $48 million in fraudulently obtained mortgages for dilapidated homes in urban areas as well as deals involving million dollar condominiums in a Chicago high-rise and sprawling homes in affluent suburbs like Wheaton and Glenview. The vice president of a title company, mortgage brokers, loan officers, appraisers, real estate investors and an attorney are among the 37 defendants charged.

What's With All the Moaning About Home Appraisals?

Lately, mortgage brokers, builders, real estate agents and others in the housing business have been moaning about appraisals. On Tuesday, it was the turn of Lawrence Yun, the chief economist of the National Association of Realtors. He lamented that May home sales were “less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan.”

10 Things Moving Companies Won't Say

The moving industry packs in nearly 55 percent of its business during the summer months, but often leaves a trail of frustrated consumers in its wake. The Department of Transportation receives up to 4,000 household moving complaints annually, mostly about loss and damage, poor service, or overcharging. The Council of Better Business Bureaus, meanwhile, reports that complaints about movers jumped from nearly 3,800 in 1997 to more than 9,200 in 2007.

Additional news from around DC region:

• Q&A: Sally Wilson on the USGBC Headquarters, LEED Fine Print, and Negotiating a Green Lease [Metropolis]
• Montgomery Approves Project Before Moratorium [Washington Post]
• Eastern Market reopens after $22M renovation [Wash Biz Journal]
• Index finds D.C. has best 'brain smarts' in U.S. [WTOP]
• Looking for a rent-free home on a lot of land [Real Estate Wonk]
• "Not Paying the Mortgage Yet Stuck with the Keys" [Hot Property]
• Prince William transfers Silver Lake to Park Authority [DC Examiner]
• Cuts Coming to Community Center Hours [Arlington Gazette]
• Experts: Investment in Green Amenities Pays Dividend [Gazette]
• DDOT Launches Real Time Circulator Mobile App [DCist]
• F.C. Council Unanimous in Bid to Convert City to 'Green Lab' [FCNP]

Sunday Open..

I haven't been doing open house for a long long time. (open house is 'not' really my forte..). But, tomorrow is special. It's my colleague's listing. If you're house hunting in Arlington tomorrow, come and check this one out at: 2110 Military Road, Arlington, VA 22207. Listing # MLS: AR7077171. We'll be there from 1pm to 4pm.

The thing is, there are not too many 3BR townhouses on the market in Arlington between $500k - $700k! Only 10 out of 321 homes on the market. Data from MLS shows that this one townhouse has the "lowest" price - on the market - for North Arlington. And it's conveniently located off Lee Highway and Military Road. It's walking distance to Ballston - Virginia Square corridor, 2 metro stations (Ballston, Virginia Square), GMU, library, shopping, restaurants, and more.. 

At a Glance: Arlington

May                                                     2009                                2008                        %

Total # units sold                            239                                   228                        4.82%

Ave. sales price                            $518,227                        $515,181               0.59%

Median price                                 $469,000                        $422,500            11.01%

Days on market                                    80                                    68

Other data:          

# Active listing                  734

Under contracts                472

# Foreclosures                       19

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data: MRIS

MetroWest is Back!

Fairfax Times reports that the MetroWest project, a mixed-use development up by Vienna Metro, that was approved in 2006 - is back on the table. This time there's plus and minus for this project asked by developer, Pulte Homes. Instead of more apartment units, because of market shifts, Pulte wanted to add more offices and drop the number of apartments build. Fairfax County told Pulte: Not so fast. They'll have to redo the transportation study before making the switch.

    

Interactive plan here.

More details about the story here.

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image: MetroWest

Shirlington Free Wi-Fi is On

This is a bonus for Shirlington. Well, another reason to hang out around Shirlington hood - bring your laptop. It gets free public Wi-Fi for the hood, courtesy of Arlington County.

Users connect to the County’s wireless network by selecting the “ArlingtonWireless” network. After joining the wireless network, there’s also a link to The Village at Shirlington homepage for the latest information on what’s happening in the area.

Arlington offers public wireless. Yes, it's free. Other hotspots around the County: at Courthouse (along Wilson and Clarendon Blvd), between Veitch and Washington Blvd in Clarendon, at libraries - Central, Shirlington, Aurora Hills, Columbia Pike, and at Walter Reed Community Center.

Weekly Roundup

The Low Down on Listing Home Inspection Costs

Question: I have been looking for a house. I was driving in an area that I like and noticed a house I had long admired had just gone up for sale. I called the listing Realtor, viewed the house and made an offer which was accepted.

Price Slashed on 23.6% of Listed Homes

Nearly one in four US homes for sale today have had at least one price reduction, as sellers come to grips with the reality of a weakening economy and a housing market still groping along toward bottom.

The Summer Home Bust

In recent years, I've approached the summer with something resembling dread. Another three months of having to explain that, no, we won't be spending much time at our place on Cape Cod, seeing as how we don't have one.

Mortgage crisis robbing seniors of golden years

Howard Weiss is 77 and scared. This year, the semiretired distributor from Phoenix ran into financial problems and stopped making his mortgage payments. He was told his home was scheduled for a foreclosure auction in May.

8 'freebies' for new-home buyers

Rhonda Duffy, owner of Duffy Realty in Atlanta, says a builder's whole career could rest on whether he or she sells one house.

The Psychology of Short Sales by Tanta, April 2008

As CR mentions in his essay on housing supply in this issue, plenty of markets are seeing very large segments of for-sale inventory coming in the form of short sale listings. Yet completed short sales remain a small segment of actual “distressed sales” or final dispositions of “worked out” loans.

Programmable thermostats are no longer part of the federal Energy Star program

The U.S. Environmental Protection Agency recently announced that it will suspend its Energy Star specification for programmable thermostats effective December 31, 2009. Any models manufactured after that date cannot bear the Energy Star label; manufacturers will have several months to update their Web sites and promotional material.

FROM AROUND THE WASHINGTON DC REGION:

• Chevy Chase to hold informational, public hearings on purple line [Gazette.net]
• Getting Closer to Confirmation of the Real World House [DCist]
• Beware: Decks Could Soon be Counted as Lot Coverage [Historic Vienna]
• Wiehle avenue development approved [Fairfax Times]
• Local Area Has Its Share of Virginia's Wealthiest [Gazette]
• Greater Washington Initiative: Region's economy to shrink in 2009 [Washington Biz Journal]
• Virginia changes mortgage regulations to fight fraud [Virginia Business]
• Is McMansion era over? [Virginia Business]
• The Cash That's Left [Washington Post]

Is your Condo on "FHA-Approved" List?

I had this conversation with a lender about FHA approved condos. Yes, condos specifically. Because if you're financing your purchase with FHA loan you want to know this info in advance - before - making an offer if the condo is FHA approved. If you're going with conventional loan, you are okay.

This is the website where you can check whether the condo is FHA-approved or not. On this website you can do search by name, location, or status.

Financing Trends

Northern Virginia

NVAR region, from 18,598 total "all" (single family, townhouse, condo) sales in 2008, here is the breakdown:

Conventional: 12322

FHA: 3480

VA: 1011

Washington DC

From 5563 total sales in 2008:

Conventional: 3875

FHA:  754

VA: 37

You see, FHA takes big chunk of home buying in our area.

So bookmark this website, for your reference:

https://entp.hud.gov/idapp/html/condlook.cfm

It helps if you are a seller too. Because part of the promotion, you can say that 'the building is FHA-approved.' It expands the pool of buyers for your condo. 

For Washington DC region, look for lisf of condominiums under the Washington DC field office.