DC Real Estate News: February 2009

"Anything you say (in front of the other party or their agent), Can and Will be Used against you in Negotiations"...

My Friend and Fellow DC area Blogger - puts it down nice and neat....

Are your Television Commercials Louder than you think they should be?

It seems to have gotten worse in recent times.  Here I am blogging away while watching TV.  The volume isn't crazy loud.  Then some STUPID commerical comes on and  WHAM IT IS SO DANG LOUD I CAN'T HEAR MYSELF BREATH!

I suppose commercials have always been "too loud" for some folks.  But I really seem to think that between Satellite TV and HD - that something has changed - and not for the better.

When I google "Commercials Too Loud" - it seems that it has to do with either the compression or the quality.  Whatever it - it's damn annoying!!!

We now return to your regularly scheduled blogging....

A news article from the Wall Street Journal; states that a new report from Moody's Economy.com; predicts that Home Prices will bottom out in the 4th Quarter of this year.

It cites signs that home sales are stabilizing as people snap up bargains on foreclosures, a decline in the supply of unsold homes in many areas and expectations of moves by the Obama administration "that will help place a floor under the housing downturn."

While some of the hardest hit areas will take into 2010 or even 2011 to stabilize; much of the country will hit bottom.  I believe in parts of the Washington DC market; we are already seeing the bottom.  Some counties, such as Prince William County in Virginia, is seeing a large increase in transactions.  The 4th Quarter numbers show more homes sold each month, since 2004.  The prices are down - the transactions are up.

This is mostly because many of these Short Sales and Foreclosures are being snapped up.  The banks have found the bottom and many of these homes are getting multiple offers.

When we look at Arlington County, or Washington DC; we don't see those numbers - yet.  

The article goes on to say;

But some areas will be hit much harder. For instance, the Naples-Marco Island, Fla., area is expected to bottom out in the fourth quarter of 2010 with prices 70% below the peak. The report projects that peak-to-trough declines for metro areas will be 66% in Miami, Fla., 63% in Riverside-San Bernardino, Calif., 58% in Phoenix, 56% in Las Vegas, 53% in Los Angeles, 38% in Washington and 33% in New York. Within those metro areas, different neighborhoods are likely to show very divergent performances; the most desirable areas near good schools and jobs are faring much better than other places.

Washington DC is clearly one of those areas that have very different numbers by neighborhood and area.  You have to realize that the "Washington DC Metro Area"; includes a very large area - 5 Counties in 2 States and the District of Columbia.  These areas are as different in terms of employment, schools, traffic, etc; as can be.  They will recover at different times; at different paces.  Some of these areas haven't even lost more than a couple of percent of value - if any.

So will Prices "Bottom Out Nationally" ?  I think in many areas - the answer is yes.  Of course things like Interest Rates staying low and employment opportunities becoming more favorable are key.

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

My Friend and Fellow DC Realtor/Blogger - Reminds us - The Tax Credit  ISN'T   Anything - YET....  Let's hope we will get some real Stimulus for the Housing Market.

But first; all the boys in Washington need to agree.

Current Number of Homes Active and Under Contract in the Washington DC area:


Here is the breakdown as of Febuary 9th, 2009

 
The number of homes on the market is creeping up slowly; which is typical as we head into Spring.  Inventories tend to be at their lowest levels - right after New Years.  Inventory levels should continue to increase until the 3rd week in June; when new listings slow for the summer months.

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: 1992 (Up 52 from Last week)        Expired: 18       Under Contract: 373  (Up 21 from Last week)

Condos:              Actives: 1419 (Up 13 from Last week)        Expired: 12       Under Contract: 252  (Up 6 from Last week)

 

Arlington County

Single Family:     Actives: 508  (Up 25 from Last Week)          Expired: 1         Under Contract: 86  (Same as Last Week)

Condos:              Actives: 55  (Up 30 from Last Week)           Expired: 2         Under Contract: 93  (Down 4 from Last Week)

 

Prince Georges County

Single Family:     Actives: 6329 (Up 32 from Last Week)        Expired: 85        Under Contract: 959  (Up 34 from Last Week)

Condos:              Actives: 824  (Up 4 from Last Week)          Expired: 7         Under Contract:63  (Up 6 from Last Week)

 

Montgomery County

Single Family:     Actives: 3888  (Up 43 from Last Week)        Expired: 33        Under Contract: 1018  (Up 73 from Last Week)

Condos:              Actives: 1293  (Up 18 from Last Week)        Expired: 10        Under Contract: 263  (Up 9 from Last Week)

 

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.


 

 



  

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

What's Selling - Washington DC - Dupont Circle Neighborhood

Here are the Properties that sold in this Washington DC Neighborhood:  Janurary 2009

Type           #Bedrooms/Baths          List Price         Sold Price        Days on Market

Co-Op                 0/1                       $184,500        $176,250              151

Condo                 1/1                       $264,900        $264,950              130

Condo                 2/1                       $500,000        $460,000              110

Condo                 2/1                       $475,000        $455,900              185

Condo                 0/1                       $239,000        $233,000               25

Condo                 0/1                       $274,500        $260,500             106

Condo                 2/2                       $439,900        $434,500               30

Condo                 2/2                       $614,900        $575,000               76

Condo                 1/1                       $349,900        $349,000               54

Condo                 3/2                       $849,900        $829,500             103

*This area includes parts of NW DC, Between K and U Street/Florida Ave and 16th to 23rd Street.

** Unit part of new building with multiple units for sale.  Days on Market may not be accurate.

Call James for all your Real Estate needs and questions; servicing Logan Circle, Mt Vernon Square and the Greater Washington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

Here are the Properties that sold in this Washington DC Neighborhood:  January 2009

Type of Property      #BR/Baths                 List Price           Closed Price     # Days on Market

Condo                       2/2                        $525,000            $525,000                 111*

Condo                       2/2                        $699,000            $632,500                 247*      

Row House                4/2.5                      $365,900            $382,900                 98           

Row House                3/1                        $649,000            $600,000                  75

Condo                       1/1.5                     $419,000            $390,000                  76

Condo                       2/2                        $615,000            $580,000                 262

Condo                       1/1                        $195,000            $195,000                  23

Condo                       1/1                        $419,900            $415,000                  93

Condo                       2/2                        $574,900            $550,000                  28

Condo                       0/1                        $199,900            $202,000                  47

Row House                5/4                        $688,800            $632,500                 278

Co-op                        0/1                       $185,000            $176,500                   35  

Condo                       1/1                        $355,000            $342,000                   20

Condo                       2/2                        $399,900            $420,000                   16

Condo                       1/1                        $299,750            $282,500                   13

Condo                       2/2                        $306,900            $316,000                  118

Condo                       2/3                       $1,694,926         $1,694,926                  0*

         

   

       *Units were part of multi-unit, newly-built complexes; DOM may not be accurate


             

This area boarders U Street & Florida Ave to the North; 16th Street to the West; H street to the South and 4th Street to the East.

View Larger Map

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

No one can seem to agree what do to with the economy.  There are good ideas, bad ideas and crazy ideas.  However, some of the things I heard today sound like Great Ideas!

Who knows what exactly will get passed in this new Legislation; but some of the tax incentives they are talking about just might do the trick.

First-Time Home Buyer Tax Credit

- Last year there was a $7500 tax credit put into place.  However it must be paid back.  This new plan works like the DC 1st Time Home Buyer Tax credit; where the credit does NOT have to paid back.  More importantly, the Senate wants it at $15,000.  WOW.  Now that's an incentive!

4% Interest Rate Buy-Down

- The second thing being considered that is directly related to Real Estate is a federally subsidized Interest Rate Buy-Down to 4% for a 30-Year Fixed Rate.  Wow - would that help folks?  Would this get buyers off the fence?

One of the big issues that these do not solve is the home owners who are in trouble.  Those who cannot afford their loan.  So if we offer them a 4% Interest Rate - that would, in many circumstances, allow them to save their home.  It should lower their payment significantly.  HOWEVER - they can't refinance if the are UPSIDE DOWN.  

This is a start - but will it work?  For some maybe to help buy.  But not those who are already struggling.

Read Stories about the Stimulus Bill.  

Associated Press

Wall Street Journal

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

I was reading a post from Todd Clark and there some comments made that made me come up with this post.

In the Real Estate business we love to throw around words and terminology; yet often they are not exactly accurate.  We are not lawyers; but we are so close to practicing law - it is sometimes scary!  Note: I am NOT a Lawyer; but this is how I see things.

Realtors and their clients need to understand some basic terminology.  The most important is the word "CONTRACT".

Contract: A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act which is enforceable in a court of law. It is a binding legal agreement

One of my biggest pet peeves is when an agent calls me and says; my buyer and I are sending over a contract for you to present to your sellers.  First of all it is called an Offer or Purchase Offer.  It is NOT yet a CONTRACT !

In fact; you don't have a CONTRACT until, all parties have agreed on the terms; signed the contract (including any changes made) and the last party to sign; delivers it to the other party.

THEN it is a CONTRACT.  You may have a "Verbal" agreement or contract; but Verbal contracts are not enforceable in Real Estate.

Now comes THE SHORT SALE ....

Here is where most Realtors and Brokers cannot agree.  A short sale is a sale which must have the bank/lenders approval before the home can be sold/bought.  Many Brokers and Agents say: It's not a contract until the Bank Approves it.  Well in a traditional sale; a contract is still contract while the buyer waits for an answer from the lender.  What makes this any different?

OK; so can someone tell me where in the CONTRACT; does it say the bank is a party to the contract?  They are not.  The contract is between the sellers and the buyers.  NOT the bank.  If the Buyers and Sellers have signed and delivered the purchase offer it IS now a contract.

Of course the argument is that the sellers cannot go through with the contract without bank/lender approval.  Does that mean it's not a CONTRACT?  

I see it as a CONTRACT until (and we all know it can take months) the bank says "NO" - then the contract cannot be executed by the seller and must be canceled.

Know the difference between an OFFER, a CONTRACT, and a CONTRACT with conditions (like Bank Approval).

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA

I have shown some real scary homes in my days.  Thank goodness; I have never had to be the Listing Agent on any of these.  They are usually Foreclosed Homes that need a WHOLE LOT of work.

Today I ran across a listing where the comments read; "House needs full renovation. Enter at own risk."  Enter at Own Risk?  Thats a bit scary!  I am not risking my life to show a house.  More importantly - what about the client?  Who is protecting them?  

Do you really think that if someone hurt themselves by falling through the floor that the comments "Enter at own risk" - would keep the owner from liability?  In a town full of lawyers like Washington DC; it would be interesting who would be found at fault if a client was injured.

The Listing Agent?  The Buyers Agent?  The Brokers?  The Owner?  Perhaps everyone would wind up in court.

Banks and owners of these dilapidated homes need to be careful - before someone drops a house on them!

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the GreaterWashington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA