DC Real Estate News

It is amazing how a small road repair can turn into a not-so-simple project.

Last week during some heavy rain; a sink hole developed on Broad Branch Road in NW DC.  This is small 2-lane road cutting through Rock Creek Park.

They made a quick repair; but after further investigation; it was discovered that more work was required.  Now this is very stretch of road; but of course now that government agencies are involved - it may take - (I dare to guess ).

From the DDOT website:

Boadbranch Road NW Traffic Advisory

The DC Metro area and the entire region had rain this weekend.  LOTS of rain.  As typical during these heavy rains; coastal flood warnings go up along the Potomac River.

This is common.  It happens all the time. Residents and businesses are used to it.  So what a surprise Monday morning when the Georgetown Waterfront businesses and residents watched water pour into the complex.

They have flood gates here and when these warnings go out; the gates are put into place.  Except for this time.

OOPS.   Big OOPS.

High-end restaurants had 10-12 feet of water in them.  Cars underwater in the parking garage. Power off and evacuated businesses as well as multi-million dollar condos above.

No one knows why the Management Company didnt get the flood gates up in time.  But I have a feeling in a town full of lawyers; there will be questions, lawsuits and I think - just perhaps - the Washington Harbor will be looking for a new management company.

See the NEWS Article   and this Video.

 

 

The Case Shiller Report was released by Standard & Poor.  It shows that while the housing market looks bad as a whole; the DC market is one area of the country which is showing progress...  Now we just need the rest of the country to follow...

 

New York, March 29, 2011 – Data through January 2011, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show further deceleration in the annual growth rates in 13 of the 20 MSAs and the 10- and 20-City Composites compared to the December 2010 report. The 10-City Composite was down 2.0% and the 20-City Composite fell 3.1% from their January 2010 levels. San Diego and Washington D.C. were the only two markets to record positive year-over-year changes. However, San Diego was up a scant 0.1%, while Washington DC posted a healthier +3.6% annual growth rate. The same 11 cities that had posted recent index level lows in December 2010, posted new lows in January.

 

See the whole story

 

Every morning I read some of the On-line news highlights over my 1st 2 or 3 cups of coffee.  Often there is some news about how bad the housing market is or some dire prediction.

What so many consumers fail to see - and the media gets a big "F" to educate people - is that Real Estate is LOCAL.  Very local in fact.

The article this morning spoke of how home prices were terrible in places like Detroit and Vegas and was going to worse before it gets better.  Yes; we know - we have been hearing that for years now.  Sadly there are few signs of improving there.  Washington DC, however is not like most parts of the country.

In fact there most of the country are not "the norm".  I argue that there is no "norm" which you can put on housing.  Yes; we can discuss how the overall housing market in the country is bad or good; but in terms of - should I buy a home in THIS or THAT area - we cannot listen to the "National Reports".

It is sometimes difficult to educate home buyers moving from other states about the Washington DC housing market.  Since we work with many relocation clients - they don't understand our market and often end up on losing on a "good deal"; because coming from a different market - a "good deal" is something completely different.

That is why; as always - you must work with a local expert who can show you current housing data and trends.  Heck - No; I do not have a crystal ball and cannot tell you what the future will bring - however I can tell you the latest trends in one area of DC over another!  Don't just take their word for it - ask for the data.  We will show you - it's not a secret.

Just remember - when buying or selling a home - the "National News" - means very, very little to you and your current/next home.

During a Real Estate transaction there are many details which must be communicated and ironed out throughout the purchase/sale. The agents are the ones who are managing all these details and communication is key! Recently we were working a difficult purchase for our client. The agent on the otherside of the purchase was very difficult to communicate with. Every time we called with a question on a follow-up item or to check in on repairs,etc - we would get voicemail with no return call. Then an email would follow an hour or two later. So then we would start going back and forth on email, as opposed to just having a short phone conversation. Of course later in the transaction, while doing the final walk through, some issues came up. Again we go back to the phone call, email game. Why can't I just get a return call?! It would save so much! But alas, things did work themselves out... But it could have been much easier if we just communicated better.

So yesterday I receive a phone call from another agent.  He says; "It took me a little long; but I am returning you call.  You wanted to show my listing at 123 Main St.  It's fully available."

SO I think to myself; what house is this?  I ask him where this house is I called him about.  He tells me what neighborhood and describes the house (like that helps - how would I remember a house I have never seen?).

I ask him - WHEN did I call you?  He sort of fumbles over himself.  I reply - I CALLED YOU 2 WEEKS AGO!  (I know the buyer I was with and we went out 2 weekends ago!).

He says; yes it's been awhile.

THEN - I share my annoyance.

"Why would you even bother to call me back if it took this long?  Pretty crazy you can't return a phone call timely."

(He was flustered and didnt even respond).

Then I just laughed and said; well my buyer found something else - make sure you tell your clients how you don't return calls.

 

When things like this happen; I just can't believe that this type of agent actually is a business competitor to me?  REALLY?

We all make mistakes; and I am not mean or a bully - but when it takes you 2 weeks to return a call - don't expect me to be all excited that you found time in your busy schedule to call me back and do your job/make a sale.

 

 

Groupon the on-line site which offers huge discounts on things to see, do, eat and more.  Offered in over 175 cities in the US and Canada; it has become a HUGE hit.

Those who sign up; receive daily emails offering "The Deal".  Basically a coupon; something like a $40 gift card at a restaurant for $20.  If you opt to buy it; they charge your credit card and you then have several months to use it.

The catch is that a minimum number of people have to want "the deal" for the deal to be "on".  (I have never seen a deal to not have enough buyers).

Now here is the problem:  Can the business handle all this extra/new business?   When The GAP (clothing store) offered a great "deal"; the GROUPON website was overloaded for hours because so many bought into it.  Did this influx of customers overwhelm the stores?  Probably not at all; there are a lot of stores and not a ton of labor in ringing up jeans and shirts.  BUT - what about that 1 single restaurant that sells hundreds of deals to new customers?

Last week a friend of mine bought a deal for a massage.  It was a great deal from a small; but reputable place.  Deal bought and a couple of days later; the call to make an appointment.

The call was made on Jan 31st.  The next appointment (on a weekend); 3rd week of April.  WHAT?   Now if my friend wants to call in sick to work; there is time on a Wednesday or Thursday in the morning. ... um not so much...  Can you say "asking for a refund?".

Groupon is a great concept; however if a business cannot handle the extra business and will instead turn off potential customers; perhaps they ned to re-think things...

One of our local Settlement Companies have introduced a Short Sale management program.  For a fee of $800 due at closing; they will handle all of the details of the short sale.  Seems like money well spent.  Of course the challenge is do the sellers have the $800?  

Well after working many short sales; I would gladly split this cost with a seller to make the process as smooth as possible (short sales are never smooth; but ever little bit helps).

Read more about SHORT TRAC from this post from Mid-Atlantic Settlement Services.

 

 

Long gone is the Federal Tax Credit for 1st Time buyers; which expired last year. HOWEVER; the District of Columbia still offers a $5,000 tax credit to anyone who has not owned a main home in the District during the one-year period ending on the date of purchase.

At the end of last year, Congress renewed the $5,000 DC home-buyer tax credit for another 2 years.  The DC tax incentive will be retroactive for 2010 and continue through 2011.  It has been extended many times since it started in 1997 and of course the hope is that this will continue...

An individual who makes less than $90,000 is eligible for at least some of the tax credit. If married and filing jointly, the ceiling increases to $130,000.

1) Who is eligible for the DC Tax Credit?
Unlike the last years' Federal Tax Credit, the DC Tax Credit only requires that you be a DC First-time Homebuyer. Even if you own a property in another state, you may be eligible for the DC Tax Credit.

2) Who Can Claim the Tax Credit?
•    If you purchased a main home during the tax year in the District of Columbia; and
•    If you (and your spouse if married) did not own any other main home in the District of Columbia during the 1-year period ending on the date of purchase.

Generally, the DC Tax Credit can be claimed in the year that the principal residence has been purchased as long as the purchaser(s) did not own another principal residence in the District of Columbia during the one year period ending on the date of purchase. 

It can be a single family house, houseboat, house trailer, cooperative apartment, condominium, etc.

However, you may not claim the credit if any of the following apply:

•    You acquired your home from certain related persons or by gift or inheritance. For details, see section 1400C(e)(2).
•    Your modified adjusted gross income (see the instructions for line 2) is $90,000 or more if single, married filing separately, head of household, or qualifying widow(er); or $130,000 or more if married filing jointly.
•    You previously claimed this credit for a different home.

3) How much is the credit for?
The maximum credit is for $5,000, or $2,500 if married filing separately. The credit begins to phase out when the modified adjusted gross income exceeds $70,000 ($110,000 if married filing jointly) and ends at $90,000 ($130,000 if married filing jointly). 

4) Are there any exclusions?
if you purchased your home from related persons or by gift or inheritance. Related persons include, among others, grandparents, parents, spouses, children and grandchildren. Also, the DC Tax Credit can only be claimed once, so it is not available if already claimed on another property.

5) Where can I get more information?
More information can be obtained from the IRS website or by reviewing the IRS Form #8859.

 

Note:  As always; this is not tax advise; but for informational purposes only.  Always consult your tax preparer or accountant.

 

 

 

Here is the breakdown as of January 24th, 2011

 

Inventory is down from the same time last year in DC and Arlington County; while Prince Georges and Montgomery Counties have seen an increase in inventory.  All areas have less homes under contract than the same time last year.

Here are the number of homes on the market including the number of homes that were taken Off (EXPIRED) the market last week.

 

 

 

Washington DC

Single Family:      Actives: 1395         Expired: 14           Under Contract: 563

Condos:               Actives: 1004         Expired: 9             Under Contract: 325  

 

Arlington County

Single Family:      Actives: 241          Expired: 2              Under Contract: 133

Condos:               Actives: 410          Expired: 4             Under Contract: 144

 

Prince Georges County

Single Family:      Actives: 4621          Expired: 34          Under Contract: 1803

Condos:               Actives: 772            Expired: 5            Under Contract: 181

 

Montgomery County

Single Family:     Actives: 2489          Expired: 18         Under Contract: 1172

Condos:              Actives: 1010          Expired: 7            Under Contract: 399

 

It is important to see the number of homes taken "Off" the market.  While many of these homes will return to the marketplace a week or two; seeing a listing "expire" means that the seller and agent thought or expected the home to be sold by now.