WOW!!!! What a crazy roller coaster ride it has been for the US and the world these past few months! World credit crisis, Obama elected as new US President, house-hold name sake firms crash and burn, retailers slashing prices 50-90%, no commercial, student or auto loans available, etc. etc. etc. Well, here is some good news on the home front:
Posted Saturday, December 13, 2008 9:10 AM
A Buyer’s Market at Last
Newsweek
By Linda Stern
December 22, 2008 issue
Sunday Open Houses are starting to look a lot more attractive, and it’s not just because the sellers baked brownies and slapped on another coat of paint. Since 2006, the peak of the housing boom, prices have dropped nationally by 18 percent and the rates on 30-year fixed mortgages have fallen from 6.8 percent to 5.5 percent. That means the average monthly mortgage payment has dropped from more than $1,000 to $894. The bottom line? Says Rich Arzaga, an independent financial adviser who teaches real estate investing at University of California, Berkeley, “Money is cheap, the homes are affordable, and sellers are really very desperate.”
That doesn’t mean you should run out and buy a house today; you can take your time to find the perfect home. The market is likely to bump along the bottom for a while, say analysts, and some markets may not hit their absolute rock-bottom prices for weeks or months—or even, in some vulnerable markets, years. But if you’re a first-time home buyer or a preretiree looking to line up your place in the sun (and you’re lucky enough to be able to afford one in this economy), start shopping now. Here’s why.
Good deals for snowbirds. Retirement hot spots like Florida, Nevada and Arizona have been particularly hard hit with falling prices. There are more than 21,000 homes for sale in Vegas; more than 5,000 in Boca Raton, almost 15,000 in Phoenix. That means lots of choice and room to bargain on price. If you’re intending to move to one of those areas, it makes sense to vacation there this winter and start checking out the market. In the three to five years it takes you to relocate, prices and rates are likely to solidify. There are already signs of slowing inventories and firming prices in some spots, like San Diego. But be careful: if you buy into a condo development that has many empty units, you can expect your monthly condo fees to rise significantly, to cover all those no-shows. And don’t count on rental income in those communities-in-crisis.
A bird in the hand. Don’t wait for the government-backed 4.5 percent rate that Treasury Department sources floated recently. It may never materialize, what with opposition from troubled banks and existing homeowners, and skepticism that it is the economic tool most needed now. Current rates are grazing their 45-year lows as it is, says Keith Gumbinger of HSH Associates, a mortgage-research firm. And they are as likely to head back up as they are to fall further.
Free money. First-time home buyers who ink their contracts before July 1, 2009, can claim a $7,500 tax credit to help them muster up a down payment. It’s really a zero-interest loan, repayable over 15 years with your annual income taxes. First-time home buyers can also withdraw money from their Individual Retirement Accounts penalty-free (but not tax-free) to make a down payment. They can also take some tax-free money out of their Roth IRAs to buy a home.
But some serious prep work is in order. As the sick housing market heads into typically slow winter, there’s time to amass a down payment (10 percent is good, 20 percent is much, much better) and get your low credit score up over 680, the new minimum level to qualify for a decent loan now. First-time and second-home buyers should take their time to explore what’s out there, and an extra moment to enjoy the one other advantage they have now. They can buy when they want, without worrying about selling a house in this market.
Friday, December 19, 2008
Tuesday, September 23, 2008
Plenty to Coax Home Buyers Back To the Market By Elizabeth Razzi
WOW! There is SO much going on to distract us during our buying or selling process. The current financial crisis meltdown has everyone talking and boy are the airwaves and papers full of crisis topics. In the middle of this storm, let's take a step back and focus on what is happening right now here in the DC real estate market. A recent article in The Washington Post has lots of positive, helpful information for "on the fence buyers", as well as the rest of us!
Plenty to Coax Home Buyers Back To the Market
Plenty to Coax Home Buyers Back To the Market
By Elizabeth Razzi
Sunday, September 7, 2008; F01
If you've been watching for the fleeting, best time to buy a home, this fall may be it, especially if you're a first-timer.
That's not because all is suddenly well with the housing market. It's not. But there are signs that things are starting to stabilize. Pair that with limited-time-only offers from the government, and this fall's market looks awfully tempting for buyers.
For example, even though the Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas such as Washington, it's going to take some of that back come Jan. 1, when the loan limit will shrink to $625,500.
Because it's one of the few remaining alternatives for buyers with low down payments, the FHA is a mainstay of the mortgage market now. It accounted for 29 percent of all applications accepted by lenders in July, according to the Mortgage Bankers Association. The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. If you're scraping dollars together for a down payment, try to set your closing for the end of this month.
If you're going to need an FHA mortgage from $625,500 to $729,750, start touring homes now, and make sure to close by the end of the year.
Also keep an eye on the expiration date for the new tax credit of up to $7,500 for first-time home buyers. It requires that you close on the home no later than June 30, 2009. That may seem like a long way off, but it will loom larger come spring, traditionally the busiest time for real estate sales.
It's reasonable to expect title companies, loan officers, home inspectors and others involved in real estate closings to be swamped as the deadline nears. Get your purchase contract signed -- and your loan application submitted -- no later than the end of May; earlier would be better.
This so-called tax credit will shave $7,500 off your federal tax bill due April 15. If you don't owe tax, you'll get the money as a refund.
But it's not exactly a tax credit; it's more accurately a no-interest loan because it has to be paid back to the IRS. After two years, you start to repay the money by adding $500 to each year's income tax bill. If you sell the home during the 15-year payback period, you have to pay the outstanding balance out of your sales proceeds. If you sell for a loss, the IRS will forgive the debt.
The payback requirement has drawn criticism and even some recommendations that buyers turn down the $7,500. But I see no need to abstain.
Here's why: Your tax situation is going to be changing so dramatically after becoming a homeowner that the payments on that tax credit/loan will simply add one more ingredient to a complicated soup. For most people, becoming a homeowner triggers their first need to move from simple, one-page EZ tax forms into the granddaddy Form 1040 that allows individual deductions, such as mortgage interest and property taxes.
New homeowners can get an immediate benefit from the credit -- and other tax breaks -- by filing a new W-4 form to have a smaller amount of tax withheld from their pay. When payback starts in two years, another slight adjustment to your W-4 would make payback relatively painless.
More cash in the paycheck can help new owners adjust to the myriad new expenses (tools, repairs, unexpected bills) that come with homeownership without resorting to expensive credit card debt.
If you haven't owned a home for three years (the government's definition of a first-time buyer in this case) and your income qualifies for the new tax credit, I say take it.
That is, take it, unless you're buying in the District. First-time buyers in the District can get a better deal -- a real $5,000 tax credit that doesn't have to be repaid. It's available to buyers with modified adjusted gross incomes of up to $90,000, or $130,000 for couples filing jointly. (The credit is reduced once income hits $70,000 for singles or $110,000 for couples.) And the "first-time buyer" definition is looser, too. It's a one-year restriction on prior ownership in the District, even if you have owned a home somewhere else for years.
The law says you can't claim both tax credits, so if I were a first-time buyer in the District, I would go with the smaller amount that doesn't require payback.
These government incentives happen to be peaking as we enter the second-busiest season for Washington area real estate, September and October. The pickings this fall are about as bountiful as they're going to get. Inventories remain swollen, and sellers still expect to pay buyers' closing costs or offer other incentives. But there are signs that inventories are starting to shrink, especially in Loudoun and Prince William counties, which have experienced some of the worst of the foreclosure crisis locally.
Consider recent inventory trends reported by Metropolitan Regional Information Systems, the local multiple-listing service.
In July 2004, in the throes of the boom, homes were selling almost as fast as they came on the market. There were only 1.1 to 1.5 new listings for each sale throughout the area.
In July of 2006 and 2007, as inventories were building rapidly, that ratio of new listings to sales ballooned, peaking at 2.26 in Fairfax, Arlington, Alexandria and Falls Church; 2.77 in Loudoun County; and 3.15 in Prince William County, Manassas and Manassas Park.
That ratio now has shrunk significantly. In July, there were only 1.44 new listings per sale in Fairfax, Arlington, Alexandria and Falls Church; 1.35 in Loudoun; and 1.26 in Prince William, Manassas and Manassas Park.
The ratio remained more stable through boom and bust in the District and Montgomery County. In Prince George's County, however, where the bust hit later than in Loudoun and Prince William counties, the ratio rose in July compared with a year ago, with 2.79 new listings for each sale. That market isn't stabilizing yet. But things are looking promising elsewhere.
Wednesday, June 25, 2008
Interesting article from FORTUNE MAGAZINE..On the path to a housing rebound!
On the path to a housing rebound The pain that homeowners and homebuilders are feeling now is a sign that things are going to get better. By Shawn Tully, editor at large Last Updated: June 24, 2008: 12:23 PM EDT NEW YORK (Fortune) -- The news that housing starts have fallen to their lowest level in 17 years sounds like one more reason to be depressed about the shrinking value of your home. In fact, it's an almost certain sign that the path to a housing recovery is finally in sight. If prices are going to stabilize, let alone rebound, the Builders constructed far more homes from 2002 until 2006 - the peak bubble years - than could possibly be absorbed by the normal growth in households. As a result, the market is now swamped with one million new and existing homes for sale that aren't occupied, and hence need to sell quickly. That's a multiple of the figure in most downturns, and it testifies to the duration and girth of the bubble. "For the recovery to begin, builders need to eliminate the standing inventory of finished, unoccupied new homes," says Mike Castleman, founder of Metrostudy, which assembles sales data on four million subdivisions across the The massive overhang of unsold inventory has remained stubbornly high. Sure, builders cut back, but sales dropped just as quickly. Now that excess supply is finally beginning to shrink. In April, the number of new homes for sale stood at 456,000 according to the U.S. Commerce Department, still a big number, but 93,000 below the mountainous figure a year ago. The return of the first-time buyer The key player in any recovery scenario is the first time buyer. The housing market operates with a pronounced laddering or ripple effect. When entry-level buyers flood the market, they not only stimulate production of new homes, they purchase existing homes. Those purchases, in turn, allow the sellers to move up to bigger houses. But when the first-timers are absent, the entire buying chain gets frozen. Today, newbies are coming back. Why? For the first time in years, entry-level homes are affordable. Builders have slashed prices, and what they're building tends to be far smaller than the McMansions of the boom, selling for far lower prices. KB Home's average selling price dropped to $248,0000 in its February quarter, versus $267,000 a year earlier. In 2006, KB's basic model in So the first time in a decade renters can carry the mortgage payments and taxes on a new house for what they're paying a landlord. Call it the New Affordability. Here's how the numbers play out: Single-family housing starts are now running at fewer than 500,000 a year. The normal demand for housing, based on immigration and household formation, is around one million units. We won't get back to that figure for a while because so many people rushed to buy homes during the boom. But with first timers returning, sales should rise to almost 700,000 units by the end of next year, according to Bernard Markstein, senior economist for the National Association of Homebuilders. That means sales will soon exceed new production by as much as 250,000 units a year. That margin forms the foundation of the housing revival. Movin' on up Step 1: First, the return of first-time buyers will shrink the overhang of new houses for sale. Step 2: Second, because so few new homes are being built, first-timers will start buying existing homes from owners who want to move up but have been trapped by the dearth of buyers. Their improved fortunes, though, come with a big caveat: The prices of new homes are now lower than comparably-sized existing homes. It's as if used cars are selling for more than new ones. That can't last. So move-up buyers are going to have to accept less than they had hoped to get for their current homes. They'll get a big break as they trade up, however. Unless they bought at the height of the boom, they'll still sell at a profit. They can then use that equity to buy bigger homes at bargain prices. During the bubble, homebuilders started pushing up home sizes to 3,500 square feet or more. It's those behemoths that are selling for the steepest discounts today. Step 3: Next, housing starts should start rising, probably next year. The increase, however, will be slow and gradual. For the next two years at least, homebuilders will compete ferociously with existing home sellers for customers. Step 4: Eventually, the glut of existing homes will disappear as well. The excess of new-home buyers over new homes being built makes that inevitable. But the oversupply is so enormous that the healing process could take as much as three more years. Only then will prices in former bubble markets start rising again. What could go wrong? One event has the potential to slow or even derail the recovery: A sharp rise in interest rates. Right now, the first-timers are gorging on 6% loans guaranteed by the FHA. But rates may not stay there. If they rise to 8% or higher because inflation rebounds, it would take a far bigger drop in prices to make new and existing homes affordable. The New Affordability is now in place. But if rates rise, we'll have to establish a New New Affordability - at even lower prices. First Published: June 24, 2008: 10:44 AM EDT |
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Tuesday, June 24, 2008
DC spring market PLUS Location, Location, Location...
WOW! I am SO glad summer is here so we can get a little R & R! My team had such a busy spring real estate market here in DC! Great product in great locations moved quickly, many with multiple offers! So goes the spring market in DC. The reason for some properties to lag on the market while others have multiple bids STILL comes back to location. Part of that location equation that we hear less about, but is VERY important is the product. Try to purchase the BEST product in the BEST area for a conservative better-long term investment. We say MANY properties that were purchased in the past 3 years (since the market reached it’s peak frenzy) sell this spring market (or last spring as well) for MUCH more than they were purchased! These are LOCATED in the BEST areas! Areas where people REALLY want to live; HAPPENING areas with boutiques, restaurants, stores, amenities...this part of the LOCATION equation remains constant through time. Focus on these areas in DC and you will have a GREAT investment. (And please hang onto these properties for “long term”, meaning 5 years+) Some ‘newer” HOT areas in DC are Logan Circle, U Street, Columbia Heights, & Mt. Vernon.
Saturday, March 29, 2008
Condo Living-Spiffed Up For a Sale- Lance contributes
I have stress the importance of staging to my Sellers ALWAYS. Read on about my Client, Sarah and the success we had when she staged her unit for sale........
Condo Living: Spiffed Up For a Sale
YOUR CONDO SITS by a Metro station, and has two huge bathrooms and a great dishwasher. It's going to be a breeze to sell it, right? Maybe not. Besides the housing slump, sellers have to consider how their pads look and feel to potential buyers before putting up a "For Sale" sign.
That's why they're often hiring stagers. These design pros come in and organize, decorate and sometimes clean a property to make it look better to house-hunters. "Real estate is all about marketing," says Lyric Turner, a professional stager. "If you have $7,000 to invest in your property, you could renovate a bathroom or maybe refinish hardwood floors. But with the same money, you could also stage a three-bedroom house. It affects the entire property, not just one room. It's a total overhaul makeover."
Turner owns Red House Staging and Interiors in D.C. and is an accredited staging professional. She says staging gives sellers some control over the stressful experience of putting their pads on the market. "Three things come into play when you're selling your home," says Turner. "Two of them you have control over; the third is the market. You can control the price, and you can control how it looks. The agents help you determine the correct price. You are responsible for how it looks," Turner says.
For those not sold on the idea of spending money to have someone redecorate a house they're ready to leave, consider this: Stagedhomes.com, a Web site for the industry, claims the average time a U.S. property that hasn't been staged stays on the market is 161 days. Staged homes spend an average of 33 days or less on the market.
That's what happened for 38-year-old Sarah Watkins, who owns U Street's Caramel Boutique. She tried to sell her vacant, sans-furniture 1,060-square-foot condo near the shop in 2005. But after a few months with no nibbles, she decided to rent the place out. Two years later, in September 2007, she was ready to try again.
"I talked to my agent about staging because I was desperate to sell," Watkins says. She hired Turner's company to assist. She suggested Watkins move most of her own furniture back into the empty space. Then Turner worked her magic, creating a more neutral feel to appeal to a wider range of potential buyers. "She strategically placed things in the kitchen," says Watkins. "There was a space between the top of the cabinets and the ceiling, and she put objects up there to make it feel more spacious." Other tricks included arranging furniture in ways that made the rooms look brighter and roomier.
In her new place across the street, Watkins says, "I lived with [nothing but] my futon and a chair for about five weeks, but it was worth it." Watkins had an offer on her one-bedroom condo within two weeks. She sold it for the asking price of $449,000, and says she would ante up for a stager again. "Staging shows the buyer the potential," says Watkins. "When you walk into a vacant space, you can't always see the possibilities."Stagers can also change the look and feel of still-occupied properties. "People are looking to put their own dreams into your home," says Realtor Steve Bachman of RE/MAX Gateway in Chantilly. "They're not buying your hobbies and photos."
Staging neutralizes a space, helping folks at an open house envision themselves living there someday. When showing clients a very lived-in property, Bachman tells customers: "'When these folks leave, all of this stuff will be gone.' But if you stage it so people don't have to make that mental leap, that's much better."
Such quickie makeovers don't have to cost a whole mortgage payment, either. One can just go for an in-home consultation with a stager (typically $150 to $250 per hour). In an occupied house, a stager will make suggestions, perhaps recommending removing personal belongings or giving options for furniture placement for better flow. Often sellers take it from there, doing the work themselves.
Other times, sellers hire a stager to complete the whole project, which can cost more, depending on many factors. In a vacant space, pros may recommend furniture rental, which can add thousands of dollars to the bill. But sellers almost always recoup that money at the settlement table. A 2003 survey by HomeGain.com (an industry Web site) claims that sellers who stage will see an average return on investment of 343 percent.
Watkins spent about $1,800 to stage her place. "It was more money I was putting out to sell it, but it sold, instead of me paying the mortgage while it stayed vacant," she says.Many real estate agents believe so strongly in staging that they will bring a stager in as part of their selling package. If sellers shy away from the expense, some agents are willing to work the cost into their contract so that owners don't pay until closing.
Sometimes staging is simply about de-cluttering. Stager Laura Caron, who owns Positively Simplified, a residential organizing company in Burke, Va., says like many things in life, presentation is everything. "You don't want to open the linen closet and see dishes in there. That sends the message that there is not enough room in the kitchen," she says.
"I tell people that whenever a buyer opens the door, it needs to look like a store," says Caron, who says staging something as small as a closet goes a long way toward luring potential buyers. "When closets are beautifully colorized, with nothing on the floor and everything sorted in length order, it sends a powerful message."
But there is such a thing as cleaning up your place too much before trying to unload it. Turner says kitchens are a good example.
There's been something driven into people about decluttering counter tops, and then they look too vacant. There's nothing left to catch the eye. Often, I tell people to add stuff back into the kitchen, like a decorative bowl or some nice cookbooks."
And what about those makeover TV shows like "Flip This House" and "Get It Sold" (see page 3)? Can they teach you how to DIY? Maybe. "I watch 'em all the time," says Realtor Lance Horsley of Long & Foster in D.C. "But being able to translate it into your own space is a different thing." Horsley says staging helps sellers hide a property's flaws and accent its strong points, which can be tough to do. "I think we can learn something from them, but I can't watch a program and then go back and redo my house."
Some people hire stagers even if they aren't selling. They may just like the clean look it produces or yearn to live in a house as fresh and uncluttered as a Pottery Barn catalog. Turner says stagers often offer consultations to homeowners who have no intention of selling, but she warns, "The way you live in a home and the way you stage a home you're trying to sell are very different. Everything that is there in a staging is for decor, and that's not a practical way to live."
But she agrees there are ideas to take away from a stager, like how to minimize clutter, make a better traffic flow or create spa-like baths or colorful kitchens. No matter why they consult stagers, homeowners who use stagers should be prepared to take the advice they're given. Turner says nothing is worse than a reluctant client.
"All I'm asking people to do is invest a little bit of money, maybe buy some new bedding, throw pillows and candles," she says. "I tell them to look at staging as an investment. You'll get to keep these things when you're done and take them to your new home."
Friday, March 28th, 2008
Written by (Washington Post) Express contributor Lynn Thorne
Photos courtesy Red House Staging
Condo Living: Spiffed Up For a Sale
YOUR CONDO SITS by a Metro station, and has two huge bathrooms and a great dishwasher. It's going to be a breeze to sell it, right? Maybe not. Besides the housing slump, sellers have to consider how their pads look and feel to potential buyers before putting up a "For Sale" sign.
That's why they're often hiring stagers. These design pros come in and organize, decorate and sometimes clean a property to make it look better to house-hunters. "Real estate is all about marketing," says Lyric Turner, a professional stager. "If you have $7,000 to invest in your property, you could renovate a bathroom or maybe refinish hardwood floors. But with the same money, you could also stage a three-bedroom house. It affects the entire property, not just one room. It's a total overhaul makeover."
Turner owns Red House Staging and Interiors in D.C. and is an accredited staging professional. She says staging gives sellers some control over the stressful experience of putting their pads on the market. "Three things come into play when you're selling your home," says Turner. "Two of them you have control over; the third is the market. You can control the price, and you can control how it looks. The agents help you determine the correct price. You are responsible for how it looks," Turner says.
For those not sold on the idea of spending money to have someone redecorate a house they're ready to leave, consider this: Stagedhomes.com, a Web site for the industry, claims the average time a U.S. property that hasn't been staged stays on the market is 161 days. Staged homes spend an average of 33 days or less on the market.
That's what happened for 38-year-old Sarah Watkins, who owns U Street's Caramel Boutique. She tried to sell her vacant, sans-furniture 1,060-square-foot condo near the shop in 2005. But after a few months with no nibbles, she decided to rent the place out. Two years later, in September 2007, she was ready to try again.
"I talked to my agent about staging because I was desperate to sell," Watkins says. She hired Turner's company to assist. She suggested Watkins move most of her own furniture back into the empty space. Then Turner worked her magic, creating a more neutral feel to appeal to a wider range of potential buyers. "She strategically placed things in the kitchen," says Watkins. "There was a space between the top of the cabinets and the ceiling, and she put objects up there to make it feel more spacious." Other tricks included arranging furniture in ways that made the rooms look brighter and roomier.
In her new place across the street, Watkins says, "I lived with [nothing but] my futon and a chair for about five weeks, but it was worth it." Watkins had an offer on her one-bedroom condo within two weeks. She sold it for the asking price of $449,000, and says she would ante up for a stager again. "Staging shows the buyer the potential," says Watkins. "When you walk into a vacant space, you can't always see the possibilities."Stagers can also change the look and feel of still-occupied properties. "People are looking to put their own dreams into your home," says Realtor Steve Bachman of RE/MAX Gateway in Chantilly. "They're not buying your hobbies and photos."
Staging neutralizes a space, helping folks at an open house envision themselves living there someday. When showing clients a very lived-in property, Bachman tells customers: "'When these folks leave, all of this stuff will be gone.' But if you stage it so people don't have to make that mental leap, that's much better."
Such quickie makeovers don't have to cost a whole mortgage payment, either. One can just go for an in-home consultation with a stager (typically $150 to $250 per hour). In an occupied house, a stager will make suggestions, perhaps recommending removing personal belongings or giving options for furniture placement for better flow. Often sellers take it from there, doing the work themselves.
Other times, sellers hire a stager to complete the whole project, which can cost more, depending on many factors. In a vacant space, pros may recommend furniture rental, which can add thousands of dollars to the bill. But sellers almost always recoup that money at the settlement table. A 2003 survey by HomeGain.com (an industry Web site) claims that sellers who stage will see an average return on investment of 343 percent.
Watkins spent about $1,800 to stage her place. "It was more money I was putting out to sell it, but it sold, instead of me paying the mortgage while it stayed vacant," she says.Many real estate agents believe so strongly in staging that they will bring a stager in as part of their selling package. If sellers shy away from the expense, some agents are willing to work the cost into their contract so that owners don't pay until closing.
Sometimes staging is simply about de-cluttering. Stager Laura Caron, who owns Positively Simplified, a residential organizing company in Burke, Va., says like many things in life, presentation is everything. "You don't want to open the linen closet and see dishes in there. That sends the message that there is not enough room in the kitchen," she says.
"I tell people that whenever a buyer opens the door, it needs to look like a store," says Caron, who says staging something as small as a closet goes a long way toward luring potential buyers. "When closets are beautifully colorized, with nothing on the floor and everything sorted in length order, it sends a powerful message."
But there is such a thing as cleaning up your place too much before trying to unload it. Turner says kitchens are a good example.
There's been something driven into people about decluttering counter tops, and then they look too vacant. There's nothing left to catch the eye. Often, I tell people to add stuff back into the kitchen, like a decorative bowl or some nice cookbooks."
And what about those makeover TV shows like "Flip This House" and "Get It Sold" (see page 3)? Can they teach you how to DIY? Maybe. "I watch 'em all the time," says Realtor Lance Horsley of Long & Foster in D.C. "But being able to translate it into your own space is a different thing." Horsley says staging helps sellers hide a property's flaws and accent its strong points, which can be tough to do. "I think we can learn something from them, but I can't watch a program and then go back and redo my house."
Some people hire stagers even if they aren't selling. They may just like the clean look it produces or yearn to live in a house as fresh and uncluttered as a Pottery Barn catalog. Turner says stagers often offer consultations to homeowners who have no intention of selling, but she warns, "The way you live in a home and the way you stage a home you're trying to sell are very different. Everything that is there in a staging is for decor, and that's not a practical way to live."
But she agrees there are ideas to take away from a stager, like how to minimize clutter, make a better traffic flow or create spa-like baths or colorful kitchens. No matter why they consult stagers, homeowners who use stagers should be prepared to take the advice they're given. Turner says nothing is worse than a reluctant client.
"All I'm asking people to do is invest a little bit of money, maybe buy some new bedding, throw pillows and candles," she says. "I tell them to look at staging as an investment. You'll get to keep these things when you're done and take them to your new home."
Friday, March 28th, 2008
Written by (Washington Post) Express contributor Lynn Thorne
Photos courtesy Red House Staging
Wednesday, March 26, 2008
DC defies home-price drop
As a constant advocate of DC and the great real estate investment opportunities here, this article from today’s (March 26th, 2008) The Washington Times reinforces the great financial benefits AND stability of purchasing in the District. What a GREAT place to live!!!!!
Article published Mar 26, 2008-The Washington Times
D.C. defies home-price drop
By Gary Emerling
The District has bucked a nationwide trend of rapidly falling home prices — the latest evidence that the city is faring better than its suburban counterparts during a national economic downturn. Home prices in the District rose by 6.4 percent in the past year, while prices in other major jurisdictions dropped dramatically, according to Metropolitan Regional Information Systems. The outer suburb of Prince William County saw the biggest price drop of 25.7 percent. The successful housing market is one reason for the District's relatively firm financial footing, which officials also attribute to fiscal discipline and a strong commercial tax base. And while other jurisdictions increased taxes or raided state savings to close budget deficits in the midst of a struggling national economy, the District has emerged as among the more fiscally responsible local governments in the region.
Stephen Dinan: McCain supports limited federal aid in solving economic woes
Buying or selling in the greater D.C. area? Check out TWT's Home Guide"That was something that would not have been looked at with [anything] other than laughter years ago," said D.C. Council member Jack Evans, Ward 2 Democrat and chairman of the council's Committee on Finance and Revenue. Development projects like the Verizon Center, the new baseball stadium and the Washington Convention Center have helped anchor a commercial property tax base that serves as a "huge element of stability" for the city, said Robert Ebel, the District's deputy chief financial officer for revenue analysis. City Administrator Dan Tangherlini, who helmed the development of Mayor Adrian M. Fenty's fiscal 2009 budget proposal, said it was such "targeted investments that have contributed to this being a vibrant city and an interesting city" that people want to come to and live in. "That's probably why we'll do well during the economic downturn," he said. "But we can't rest on that assumption." Mr. Fenty's $9.4 billion budget for fiscal 2009 contains $5.66 billion in local, nonfederal funding that is only a 1 percent increase from the amount he proposed in last year's spending plan. Mr. Fenty, a Democrat, said the spending plan is "fiscally conservative" and the city's financial state is a far cry from the 1990s, when the District teetered on the brink of insolvency and was placed under a financial control board by Congress. "Who would've thunk it 13 years ago when the city was $500 million or so in the red?" Mr. Fenty said when introducing the second spending plan of his mayoral term. In Maryland, Gov. Martin O'Malley, a Democrat, signed a $1.4 billion tax increase into law late last year to help close the state's budget shortfall. Virginia Gov. Tim Kaine, a Democrat, proposed dipping into the state's savings to help cover a $339 million shortfall in the budget that runs through June 30, as well as a $1 billion revenue adjustment in the $78 billion biennial budget he proposed in December. The effects of the slowing national economy and statewide budget cuts also have contributed to struggles by local jurisdictions to stay in the black: Montgomery County Executive Isiah Leggett, a Democrat, has proposed job cuts and an 8.3 percent property-tax increase to help close a budget gap that now sits at $297 million. Prince George's County Executive Jack B. Johnson, a Democrat, aims to close a $121.6 million deficit through a hiring freeze on all non-public-safety positions and increases in the county's recordation and income taxes. And Fairfax County, facing a $120 million deficit, plans to cut salaries in government agencies and increase fees imposed on residents to help trim its budget gap. Ed Lazere, director of the D.C. Fiscal Policy Institute, said the District deserves credit for making one-time expenditures with its budgetary surpluses, while Maryland has been victimized in part by having to make up for tax cuts implemented under Gov. Parris N. Glendening, a Democrat. Mr. Lazere also said tax revenues haven't dropped as dramatically in the District as they have in Maryland and Virginia, and that the city is fortunate because it is not as reliant on the real estate market as the suburbs. "A big piece of it is that we're just fortunate," Mr. Lazere said. "I wouldn't say that we've been fiscally irresponsible, but I wouldn't say we've been particularly fiscally responsible either." The city's major tax revenues — made up of the real property tax, the general sales tax, the individual income tax, business income taxes and taxes on real estate transactions — grew by nearly 15 percent between fiscal 2006 and 2007, according to budget documents. The growth rates are projected to slow to only 3.3 percent and 6.2 percent in fiscal 2008 and 2009, respectively. But Mr. Tangherlini said the District still has benefited from its efforts to cap the tax rate on residential assessments, a strong economy in years past and a blunted impact from the national economic struggles. "If you look at the continued investment in the real estate market, where the cranes are still swinging, it's pretty much in the District of Columbia," Mr. Tangherlini said. "That's going to cushion us from a tax standpoint." The District's position also is unique from states and other localities because of its relationship with Congress, which requires the city to prove that its budget is balanced four years into the future, and its function as both a state and local government. "Property tax[es] are a third of our revenues. States don't have that. Income tax is a third of our revenues, and local governments don't have that," Mr. Ebel said. Kaine spokesman Gordon Hickey noted that Virginia is different than the District and said Mr. Kaine was fiscally responsible in making his budget cuts. "I am not an economist, but it strikes me as D.C. is a city and Virginia is state," Mr. Hickey said. "[Virginia] has urban, suburban and large urban areas. ... They are different kinds of things." Mr. Ebel said the District's tax revenues are potentially vulnerable if the national economy continues to slow and the stock market takes a hit. But he said the city is finally on equal financial footing with its suburban counterparts. "I don't think we in D.C. want to be smug that somehow we're better than our neighbors," Mr. Ebel said. "But we're just as good as our neighbors."
Article published Mar 26, 2008-The Washington Times
D.C. defies home-price drop
By Gary Emerling
The District has bucked a nationwide trend of rapidly falling home prices — the latest evidence that the city is faring better than its suburban counterparts during a national economic downturn. Home prices in the District rose by 6.4 percent in the past year, while prices in other major jurisdictions dropped dramatically, according to Metropolitan Regional Information Systems. The outer suburb of Prince William County saw the biggest price drop of 25.7 percent. The successful housing market is one reason for the District's relatively firm financial footing, which officials also attribute to fiscal discipline and a strong commercial tax base. And while other jurisdictions increased taxes or raided state savings to close budget deficits in the midst of a struggling national economy, the District has emerged as among the more fiscally responsible local governments in the region.
Stephen Dinan: McCain supports limited federal aid in solving economic woes
Buying or selling in the greater D.C. area? Check out TWT's Home Guide"That was something that would not have been looked at with [anything] other than laughter years ago," said D.C. Council member Jack Evans, Ward 2 Democrat and chairman of the council's Committee on Finance and Revenue. Development projects like the Verizon Center, the new baseball stadium and the Washington Convention Center have helped anchor a commercial property tax base that serves as a "huge element of stability" for the city, said Robert Ebel, the District's deputy chief financial officer for revenue analysis. City Administrator Dan Tangherlini, who helmed the development of Mayor Adrian M. Fenty's fiscal 2009 budget proposal, said it was such "targeted investments that have contributed to this being a vibrant city and an interesting city" that people want to come to and live in. "That's probably why we'll do well during the economic downturn," he said. "But we can't rest on that assumption." Mr. Fenty's $9.4 billion budget for fiscal 2009 contains $5.66 billion in local, nonfederal funding that is only a 1 percent increase from the amount he proposed in last year's spending plan. Mr. Fenty, a Democrat, said the spending plan is "fiscally conservative" and the city's financial state is a far cry from the 1990s, when the District teetered on the brink of insolvency and was placed under a financial control board by Congress. "Who would've thunk it 13 years ago when the city was $500 million or so in the red?" Mr. Fenty said when introducing the second spending plan of his mayoral term. In Maryland, Gov. Martin O'Malley, a Democrat, signed a $1.4 billion tax increase into law late last year to help close the state's budget shortfall. Virginia Gov. Tim Kaine, a Democrat, proposed dipping into the state's savings to help cover a $339 million shortfall in the budget that runs through June 30, as well as a $1 billion revenue adjustment in the $78 billion biennial budget he proposed in December. The effects of the slowing national economy and statewide budget cuts also have contributed to struggles by local jurisdictions to stay in the black: Montgomery County Executive Isiah Leggett, a Democrat, has proposed job cuts and an 8.3 percent property-tax increase to help close a budget gap that now sits at $297 million. Prince George's County Executive Jack B. Johnson, a Democrat, aims to close a $121.6 million deficit through a hiring freeze on all non-public-safety positions and increases in the county's recordation and income taxes. And Fairfax County, facing a $120 million deficit, plans to cut salaries in government agencies and increase fees imposed on residents to help trim its budget gap. Ed Lazere, director of the D.C. Fiscal Policy Institute, said the District deserves credit for making one-time expenditures with its budgetary surpluses, while Maryland has been victimized in part by having to make up for tax cuts implemented under Gov. Parris N. Glendening, a Democrat. Mr. Lazere also said tax revenues haven't dropped as dramatically in the District as they have in Maryland and Virginia, and that the city is fortunate because it is not as reliant on the real estate market as the suburbs. "A big piece of it is that we're just fortunate," Mr. Lazere said. "I wouldn't say that we've been fiscally irresponsible, but I wouldn't say we've been particularly fiscally responsible either." The city's major tax revenues — made up of the real property tax, the general sales tax, the individual income tax, business income taxes and taxes on real estate transactions — grew by nearly 15 percent between fiscal 2006 and 2007, according to budget documents. The growth rates are projected to slow to only 3.3 percent and 6.2 percent in fiscal 2008 and 2009, respectively. But Mr. Tangherlini said the District still has benefited from its efforts to cap the tax rate on residential assessments, a strong economy in years past and a blunted impact from the national economic struggles. "If you look at the continued investment in the real estate market, where the cranes are still swinging, it's pretty much in the District of Columbia," Mr. Tangherlini said. "That's going to cushion us from a tax standpoint." The District's position also is unique from states and other localities because of its relationship with Congress, which requires the city to prove that its budget is balanced four years into the future, and its function as both a state and local government. "Property tax[es] are a third of our revenues. States don't have that. Income tax is a third of our revenues, and local governments don't have that," Mr. Ebel said. Kaine spokesman Gordon Hickey noted that Virginia is different than the District and said Mr. Kaine was fiscally responsible in making his budget cuts. "I am not an economist, but it strikes me as D.C. is a city and Virginia is state," Mr. Hickey said. "[Virginia] has urban, suburban and large urban areas. ... They are different kinds of things." Mr. Ebel said the District's tax revenues are potentially vulnerable if the national economy continues to slow and the stock market takes a hit. But he said the city is finally on equal financial footing with its suburban counterparts. "I don't think we in D.C. want to be smug that somehow we're better than our neighbors," Mr. Ebel said. "But we're just as good as our neighbors."
Sunday, March 9, 2008
Decorate for SPRING!!!!
WOW! The DC real estate market has really gotten busy the past few weeks. Okay so it is not “officially” spring; who cares?! The “spring market”, the busiest of all the seasons for real estate really got into the swing of things early this year. I am sure this makes many Sellers and Real Estate Agents happy! If you are getting ready to sell or you just want to “freshen” up your home, here are some simple tips from Lowes:
9 HOT HOME DECORATING TIPS
1. Color your world. You can change the look of
a room in a matter of hours with paint, and we’re
not just talking about the walls. Ceilings, trim,
and chair rails can be punched up, and there are
many faux finishing techniques that are perfect
for the do-it-yourselfer. Visit Lowe’s online paint
project center http://www.lowes.com/lowes/lkn?action=pg&p=HomeDecor/paintProjCtr_index.html for ideas.
2. Update window treatments. If your windows
need a makeover, lighten them up with simple
drapery panels. Lowe’s has a collection of drapes,
blinds, shades and swags in the latest colors and
fabrics. Now you can order special order window
treatments online by clicking here: http://www.lowes.com/lowes/lkn?action=pg&p=Promos/WindowTreatments.html&rn=RightNavFiles/no
3. Rearrange the furniture. Create a new look
without spending a dime! Map things out on paper
before you start moving pieces around, especially
the heavy ones.
4. Re-purpose a room. Do you have a living
room or extra bedroom that’s not being fully
utilized? Turn it into an office, gym, media room or
playroom for the kids.
5. Accessorize! Little details can make a big
impact. If your current accessories have lost
their luster, replace them with decorative books,
candles, and interesting pieces that reflect your
personality and hobbies.
6. Don’t forget the floors. Nothing beats the smell
of fresh carpet, to give your home that “new
house” feel. Believe it or not, shag carpeting is
making a comeback!
Visit your local Lowe’s to see what’s hot in floor
coverings for the home. And, when you purchase
any special order carpet, Lowe’s offers installation
for the entire house for just $199.
7. New countertops can transform a kitchen or
bath, without having to remodel the entire room.
And you don’t have to spend a fortune: affordable
laminates now come in styles that look amazingly
close to real granite, marble and quartz.
8. Think spring. Add fresh cut flowers and new
house plants to green up your living spaces, and
remind you that spring is on its way!
9. Decorative molding can add instant
glamour to any room, and it’s easier to install
than most people think. Lowe’s offers a free
step-by-step project guide to install your own
molding http://www.lowes.com/lowes/lkn?action=howTo&p=Improve/InstMld.html
Wednesday, February 13, 2008
8 Home Organization Tips from Lowes
Brrrrrr!!! Bitter cold weather hits the east coast. This is the perfect time to stay indoors, keep warm and get organized!
If "getting organized" is on your list of New Year's resolutions, you're not alone. Surveys show that getting organized is right up there with exercising, spending more time with family and paying off debt.
Organizing your home from top to bottom doesn't have to be a daunting task, especially if you focus on one room at a time and work in short intervals.
8 Home Organization Tips
Provided by Lowes
If "getting organized" is on your list of New Year's resolutions, you're not alone. Surveys show that getting organized is right up there with exercising, spending more time with family and paying off debt.
Organizing your home from top to bottom doesn't have to be a daunting task, especially if you focus on one room at a time and work in short intervals.
8 Home Organization Tips
Provided by Lowes
Monday, February 4, 2008
The MRIS Trends in Housing Year-End Report-2007
This sixth issue of Trends in Housing, a joint publication of MRIS and Delta Associates, is full of useful information for both Buyers and Sellers; A MUST READ!!! This report provides a regular in-depth look at the issues that shape the Mid-Atlantic housing market. For those of you that have spoken to me, I have always suggested that you go to www.DeltaAssociates.com for statistics & housing data on the DC Metro Area's real estate market; they are the best! Inside this issue are several regular features of Trends in Housing, including:
• An analysis of the Washington and Baltimore regional economies
• An examination of regional housing data, including a review of trends in the for-sale market
• An overview of the commercial real estate market as it relates to the region’s housing market
In addition, we offer feature articles, which explore matters that affect housing in the Mid-Atlantic region. In this issue, our features are:
• The impact of foreclosures on the residential real estate market.
• The coming arrival of the Pentagon’s base realignment plan. What does it mean for military personnel and the real estate markets near affected bases?
MRIS, Feb. 4, 2008–The MRIS Trends in Housing Year-End Report is now posted online at: http://www.mris.com/reports/trendsreport/index.cfmThis issue features an analysis of the Washington and Baltimore economies with a special overview of the commercial real estate market as it relates to the region’s housing market. Of special note in this issue, features stories on the impact of foreclosures on the market and BRAC-how the coming arrival of the Pentagon’s base realignment plan will affect the region’s real estate market.
• An analysis of the Washington and Baltimore regional economies
• An examination of regional housing data, including a review of trends in the for-sale market
• An overview of the commercial real estate market as it relates to the region’s housing market
In addition, we offer feature articles, which explore matters that affect housing in the Mid-Atlantic region. In this issue, our features are:
• The impact of foreclosures on the residential real estate market.
• The coming arrival of the Pentagon’s base realignment plan. What does it mean for military personnel and the real estate markets near affected bases?
MRIS, Feb. 4, 2008–The MRIS Trends in Housing Year-End Report is now posted online at: http://www.mris.com/reports/trendsreport/index.cfmThis issue features an analysis of the Washington and Baltimore economies with a special overview of the commercial real estate market as it relates to the region’s housing market. Of special note in this issue, features stories on the impact of foreclosures on the market and BRAC-how the coming arrival of the Pentagon’s base realignment plan will affect the region’s real estate market.
Thursday, January 31, 2008
WOW! Fed slashes rates second time in just over a week! How this affects YOU!
There is some great news out there for homeowners and soon to be purchasers. The Federal Reserve lowered short term interest rates again by half a percentage point on Wednesday. While this directly affects the rate of your ARM (adjustable rate mortgage) and Equity Lines of Credit on your home, it will most likely take a few weeks for this to be felt in the mortgage rates offered to potential buyers. This translates to “all good news” on the housing front, which can use a “shot in the arm”. In my opinion, we are headed back to the “good old days”, at least for a short while, where there are low interest rates and ample supply of properties to select from. Investors are coming back into the real estate market as investments in the stock market remain suspect and there are plenty of deals to be had in real estate. Yesterday’s article on www.BankRate.com does a good job of explaining the rate change and how it affects mortgages. Both the full story and link are provided below.
Fed cuts rate by half-point to 3 percent
By Holden Lewis • Bankrate.com
For the second time in just over a week, the Federal Reserve has lowered short-term interest rates. This time, the move was widely expected.
The central bank's Federal Open Market Committee reduced the target federal funds rate half a percentage point, to 3 percent. This affects consumers because the prime rate will fall half a point, too, to 6 percent. Variable-rate credit cards and home equity lines of credit are linked to the prime rate, so they will fall another half-point over the next couple of billing cycles. The Fed's rate cut is designed to get consumers borrowing and spending again.
"Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets," the Fed explained, adding that the rate-setting committee expects inflation to settle down in the next few quarters.
The Fed went on to say that the combined rate cuts -- totaling 2.25 percent since September -- should promote moderate growth. "However, downside risks to growth remain."
The vote wasn't unanimous. Richard W. Fisher, of the Federal Reserve Bank of Dallas, voted against a rate cut. The central bank also reduced the discount rate by a half-point. The Fed charges the discount rate on direct loans to member banks.
The rate-setting committee has eight scheduled meetings a year. On Jan. 22, the committee took the unusual step of cutting short-term rates between scheduled meetings. That day, the Fed reduced the federal funds rate by three-quarters of a point, to 3.5 percent. It explained that it took the move "in view of a weakening of the economic outlook and increasing downside risks to growth." That was a clear statement that the Fed is in recession-fighting mode. Today's rate cut confirms that.
Recession versus inflationEveryone recognizes that the Fed risks starting or exacerbating a recession if it keeps rates too high. But the central bank risks igniting inflation if it sends rates too low. The rate-setting committee has chosen which misstep it would rather make: inviting inflation.
Fed chops rate 3%
The Federal Reserve slashed 50 basis points off a key interest rate.
"The main concern they've got right now is the economy, period, and they don't want to take a recession," says John Burford, vice president and investment portfolio manager for The International Bank of Miami. "In order to avoid that, they're willing to take some inflation risk."
That isn't to say that he agrees with the rate cut. "Sad to say," Burford said before the rate cut was announced, "they've built up a pretty good expectation in the markets that they're going to do something." Leaving rates alone would have been a sell-off in the stock and bond markets, and that's not what the Fed wanted.
Richard DeKaser, chief economist for National City Corp., says the Fed's recent actions are difficult to interpret. "For the longest time, we had a very reluctant Fed that was gradualist in its approach and really moving only in reaction to very persuasive evidence that rate cuts were necessary," DeKaser says.
Last week's big, unscheduled rate cut was not gradualist, and there are still arguments to be made that more rate cuts aren't necessary. The Fed has slashed the federal funds rate from 5.25 percent to 3 percent since September, and it usually takes six to 12 months for the effects of rate reductions to show up in the economy, DeKaser says: "The pipeline of monetary stimulus is still pretty full."
Mortgage rates don't respond right awayLong-term rates, such as those for mortgages, don't respond directly to the Fed's short-term rate moves. Sometimes, mortgage rates move in the opposite direction when the Fed reduces the federal funds rate. But more often than not, mortgage rates eventually follow the Fed's lead. That might be one of the motivations of the central bank, DeKaser says -- "to help the housing market by lowering the refinance rate on many resetting mortgages. That makes it easier for people confronting resets, which we know are rampant right now, to achieve more affordable rates."
The federal funds rate is the target interest rate for banks borrowing reserves among themselves. The discount rate is the interest rate that the Fed charges banks to borrow reserves from the Federal Reserve. The Fed wants to be the lender of last resort: It wants banks to borrow from one another at the federal funds rate before borrowing from the Federal Reserve at the higher discount rate.
Posted January 30th, 2008
You can read this story on Bankrate.com at http://www.bankrate.com/brm/news/fed/main-Jan302008.asp
Fed cuts rate by half-point to 3 percent
By Holden Lewis • Bankrate.com
For the second time in just over a week, the Federal Reserve has lowered short-term interest rates. This time, the move was widely expected.
The central bank's Federal Open Market Committee reduced the target federal funds rate half a percentage point, to 3 percent. This affects consumers because the prime rate will fall half a point, too, to 6 percent. Variable-rate credit cards and home equity lines of credit are linked to the prime rate, so they will fall another half-point over the next couple of billing cycles. The Fed's rate cut is designed to get consumers borrowing and spending again.
"Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets," the Fed explained, adding that the rate-setting committee expects inflation to settle down in the next few quarters.
The Fed went on to say that the combined rate cuts -- totaling 2.25 percent since September -- should promote moderate growth. "However, downside risks to growth remain."
The vote wasn't unanimous. Richard W. Fisher, of the Federal Reserve Bank of Dallas, voted against a rate cut. The central bank also reduced the discount rate by a half-point. The Fed charges the discount rate on direct loans to member banks.
The rate-setting committee has eight scheduled meetings a year. On Jan. 22, the committee took the unusual step of cutting short-term rates between scheduled meetings. That day, the Fed reduced the federal funds rate by three-quarters of a point, to 3.5 percent. It explained that it took the move "in view of a weakening of the economic outlook and increasing downside risks to growth." That was a clear statement that the Fed is in recession-fighting mode. Today's rate cut confirms that.
Recession versus inflationEveryone recognizes that the Fed risks starting or exacerbating a recession if it keeps rates too high. But the central bank risks igniting inflation if it sends rates too low. The rate-setting committee has chosen which misstep it would rather make: inviting inflation.
Fed chops rate 3%
The Federal Reserve slashed 50 basis points off a key interest rate.
"The main concern they've got right now is the economy, period, and they don't want to take a recession," says John Burford, vice president and investment portfolio manager for The International Bank of Miami. "In order to avoid that, they're willing to take some inflation risk."
That isn't to say that he agrees with the rate cut. "Sad to say," Burford said before the rate cut was announced, "they've built up a pretty good expectation in the markets that they're going to do something." Leaving rates alone would have been a sell-off in the stock and bond markets, and that's not what the Fed wanted.
Richard DeKaser, chief economist for National City Corp., says the Fed's recent actions are difficult to interpret. "For the longest time, we had a very reluctant Fed that was gradualist in its approach and really moving only in reaction to very persuasive evidence that rate cuts were necessary," DeKaser says.
Last week's big, unscheduled rate cut was not gradualist, and there are still arguments to be made that more rate cuts aren't necessary. The Fed has slashed the federal funds rate from 5.25 percent to 3 percent since September, and it usually takes six to 12 months for the effects of rate reductions to show up in the economy, DeKaser says: "The pipeline of monetary stimulus is still pretty full."
Mortgage rates don't respond right awayLong-term rates, such as those for mortgages, don't respond directly to the Fed's short-term rate moves. Sometimes, mortgage rates move in the opposite direction when the Fed reduces the federal funds rate. But more often than not, mortgage rates eventually follow the Fed's lead. That might be one of the motivations of the central bank, DeKaser says -- "to help the housing market by lowering the refinance rate on many resetting mortgages. That makes it easier for people confronting resets, which we know are rampant right now, to achieve more affordable rates."
The federal funds rate is the target interest rate for banks borrowing reserves among themselves. The discount rate is the interest rate that the Fed charges banks to borrow reserves from the Federal Reserve. The Fed wants to be the lender of last resort: It wants banks to borrow from one another at the federal funds rate before borrowing from the Federal Reserve at the higher discount rate.
Posted January 30th, 2008
You can read this story on Bankrate.com at http://www.bankrate.com/brm/news/fed/main-Jan302008.asp
Wednesday, January 30, 2008
Troubled Borrowers; Help from President Bush's initiative
We read and hear about it in the news almost daily; foreclosures on the rise across the USA. DC has been relatively untouched by this compared to many metropolitan areas. However, due to the nature of the problem, we are going to see it happen here in DC; hopefully on a very small scale. I met with a wonderful lady yesterday who was experiencing "mortgage problems" and in my research to see where I could direct her I found this helpful article in the February 2008 Realtor Magazine. It has lots of helpful advise and contact numbers so I have provided the full article and link below.
Help Troubled Borrowers
Troubled borrowers all around the country are wondering how—or whether—they’re eligible for any relief under the initiative President George W. Bush announced in mid-December to stem the tide of defaulted subprime mortgages. Here’s what you need to know to help your past customers or anyone who comes to you concerned about problems paying their mortgage loan.
Bush’s Hope Now initiative is a voluntary accord entered into by lenders, loan servicers, and mortgage investors to help borrowers who face default when their subprime adjustable-rate mortgage resets at a higher rate. The most prominent part of the initiative is an interest-rate freeze that would give borrowers facing an unmanageable interest-rate hike the time to work out a solution.
When people ask you for advice, tell them:
1. Call the national counseling hotline President Bush publicized.
The number, 888-995-4673 (888-995-HOPE), is available on a 24/7 basis.
Calling the number puts them in contact with a HUD-approved counselor affiliated with the nonprofit Homeownership Preservation Foundation.
As of mid-December, there were about 180 counselors, and their ranks were supposed to grow to about 400 early this year, according to Tracy Morgan, vice president of the foundation.
Since the president’s announcement, counselors have seen the volume of hotline calls skyrocket from about 1,500 a day to 22,000 a day as of late December, says Morgan. She expects calls to stabilize at about 2,500 a day in 2008.
2. Expect to be on the phone about 45 minutes.
A counselor will gather information about the caller’s financial situation and make a number of determinations, including eligibility to participate in the initiative.
Home owners are eligible for the initiative if they’re current and expect to stay current after the rate resets but are looking to refinance into a more appropriate loan; they’re current but face possible default after their rate resets, so they need to modify their existing loan or refinance into more affordable financing; or they’re in default before their rate resets.
The initiative applies only to purchase-money mortgages, not home equity loans, and only to borrowers who secured financing during the height of the housing boom — Jan. 1, 2005, to July 31, 2007 — and whose rate resets between Jan. 1, 2008, and July 31, 2010. Lenders estimate some 1.2 million borrowers are eligible.
Of course, the counselors can help borrowers who don’t meet eligibility for the initiative, too. “Most of the calls we receive today continue to be for more traditional types of payment problems,” says Roy Nash, executive director of NeighborWorks Waco, a Texas credit counseling and financial education organization. “Income problems as a result of a job loss and unexpected expenses like a medical emergency continue to be the main reason people call.”
3. Expect a counselor to recommend a course of action.
Typically, two or three hotline calls transpire before the counselor has enough information to make a recommendation, though it might take just one call if the borrower is prepared with paperwork verifying income and monthly expenses.
“The more prepared they are, the more quickly we can help them,” says Daniel Garcia, a counselor with NeighborWorks Waco.
The counselor’s main job is to explain what options are available based on a borrower’s situation and to have the borrower call the mortgage servicer to initiate a workout plan.
In some cases, the counselor will recommend the borrower call another counselor, one in the borrower’s area, and get counseling in person. In other cases, the counselor will contact the servicer directly. To do that, counselors must get the borrowers’ written authorization to act on their behalf.
4. Servicers are increasingly amenable to be flexible.
Garcia says servicers are more willing to take calls and be flexible than before the subprime crisis.
“A lot of these lenders [who also do servicing] are overflowing with REOs and can’t take any more, so they have to do something,” says Garcia. “They’re ramping up their staff to deal with this, hiring and training more people, and giving them more authority.”
Countrywide Home Mortgage, the country’s largest mortgage lender and the servicer for an estimated 82,000 loans whose borrowers fall under Hope Now’s eligibility criteria, has a team of 3,000 handling workout plans, though not only for Hope Now cases.
Wells Fargo has established a dedicated counselor phone line. “If customers go to a counseling agency because they need to get help, and they give the authorization to the counseling agency, we will talk to that third party,” says Patrick Carey, executive vice president of default and retention operations for Wells Fargo.
5. Borrowers are receiving fast-track workout plans based on their eligibility.
Servicers have the most flexibility in working with borrowers who are current on their mortgage and expect to stay current after rates reset. Servicers determine these borrowers’ eligibility for refinancing based on information the servicer already has on file, such as the current loan amount and loan-to-value ratio and the borrowers’ FICO score and credit history.
Refinancing is the typical solution for these borrowers, and the servicer is supposed to recommend the best available replacement product for the borrower, even if that product isn’t one offered by a lender affiliated with the servicer’s company.
Carey of Wells Fargo says his company is prepared to do that. “Whatever works best for customers’ financial circumstance, we will work with them to accomplish,” he says.
The servicers are also supposed to help borrowers avoid prepayment penalties in a refinancing, though that might be easier said than done because many subprime loans come with stiff prepayment penalties. The initiative recommends—rather than requires—that servicers modify the original loan to eliminate a penalty. At the same time, investor rules for securities backed by these mortgages govern what servicers can and can’t do, so any attempt to modify a provision such as a prepayment penalty without investors’ OK can invite a lawsuit.
“Any servicers who service loans for others, as most of us do, are governed by the constraints or the guidelines of the investors who own the loans,” says Carey. “Unless you’re delegated to do something, you have to get approval to do it.”
Industry executives and government officials who designed the initiative think they’ve worked out a solution, though, because these kinds of problems were discussed before all parties, including investor representatives, signed off on the agreement.
“With the investor community on board and as a clear beneficiary of this approach, the risk of litigation should be manageable,” said U.S. Treasury Secretary Henry Paulson Jr., who spoke about the initiative in early December.
6. A rate freeze applies to some, not all, borrowers.
The interest-rate freeze that attracted the bulk of media attention when the president announced the initiative applies only to a specific subset of borrowers: those who are current on their mortgage but don’t have the financial wherewithal to stay current once their interest rate bumps up and can’t qualify to refinance.
The freeze is intended to buy these borrowers time to fix their situation. “There are some responsible home owners who can avoid foreclosure with some assistance,” President Bush said when he announced the initiative. “We don’t want to bail out those who recklessly took out a mortgage they couldn’t afford.”
Thus, home owners who’ve suffered a job loss or a costly medical situation may not be eligible for the freeze; to qualify, borrowers also have to have secured their financing during the eligibility window and be current before their rate’s reset.
The recourse for ineligible borrowers is traditional financial counseling, says Morgan.
7. Traditional remedies are open to the most troubled borrowers.
The last group of borrowers the initiative is designed to address includes home owners who are unable to make their payments even before the rate resets. For these borrowers, servicers have few options other than to find the least painful loss mitigation strategy.
“This is when we shift the discussion to deed in lieu of foreclosure or short sale, because these approaches give customers the opportunity to leave that property without going through the foreclosure process,” says Carey.
If borrowers in this situation first call a servicer rather than a counselor, it’s not uncommon for the servicer to refer them to a counselor before any action is taken. The borrowers might be good candidates for various assistance programs available through counselors.
“A lot of times now, the lender is directly referring the client to the Hope Now hotline, and in turn it gets referred to us,” says Garcia of NeighborWorks. “That’s a good thing.”
Counselors often bring a broader view of possible solutions than the servicer can offer. “We can direct them to organizations that can help them gain more income or help them temporarily with utility assistance. And we can also credit counsel them—help them budget better,” says Garcia.
The most important advice you can give is to encourage borrowers to call the hotline and start the process of seeking a solution to their financing woes.
Carey of Wells Fargo emphasized that servicers can do nothing until borrowers call.
“One of the biggest challenges we have in the industry is being able to even have these discussions that can help them,” says Carey. “That’s why it’s so important that they pick up the phone.”
--------------------------------------------------------------------------------
Different Help for Different Borrowers
Troubled borrowers who call the Hope Now hotline, 888-995-4673 (888-995-HOPE), will find that their solution will depend on their situation.
Owners who are able to stay current even with a rate reset:
Solution: Counseling and refinancing. Lenders may be able to take these borrowers through a fast-track process into a more affordable loan.
Potential pitfall: Prepayment penalty. Borrowers are encouraged to time their refinancing to after the rate reset, since penalties often apply only during the initial rate period.
Owners who face default after a rate reset:
Solution: Counseling and rate freeze of up to five years. To qualify, they must be ineligible for refinancing (e.g., have a loan-to-value ratio of greater than 97 percent), occupy the property as a primary residence, and have a credit score of less than 660 that hasn’t improved more than 10 percent since the loan was originated.
Potential pitfall: The rate freeze is temporary; borrowers still need to work out a long-term solution
Owners already in default:
Solution: Counseling and a loss-mitigation strategy, such as a short sale or deed in lieu of foreclosure. Under the mortgage debt foregiveness law signed by President Bush Dec. 20, borrowers who receive debt foregiveness as part of a loan workout over the next three years won’t have to pay federal tax on the forgiven amount.
Potential pitfall: Those who don’t call in time may not be able to avoid foreclosure.
http://www.realtor.org/rmomag.NSF/pages/featurefeb08?OpenDocument
Help Troubled Borrowers
Troubled borrowers all around the country are wondering how—or whether—they’re eligible for any relief under the initiative President George W. Bush announced in mid-December to stem the tide of defaulted subprime mortgages. Here’s what you need to know to help your past customers or anyone who comes to you concerned about problems paying their mortgage loan.
Bush’s Hope Now initiative is a voluntary accord entered into by lenders, loan servicers, and mortgage investors to help borrowers who face default when their subprime adjustable-rate mortgage resets at a higher rate. The most prominent part of the initiative is an interest-rate freeze that would give borrowers facing an unmanageable interest-rate hike the time to work out a solution.
When people ask you for advice, tell them:
1. Call the national counseling hotline President Bush publicized.
The number, 888-995-4673 (888-995-HOPE), is available on a 24/7 basis.
Calling the number puts them in contact with a HUD-approved counselor affiliated with the nonprofit Homeownership Preservation Foundation.
As of mid-December, there were about 180 counselors, and their ranks were supposed to grow to about 400 early this year, according to Tracy Morgan, vice president of the foundation.
Since the president’s announcement, counselors have seen the volume of hotline calls skyrocket from about 1,500 a day to 22,000 a day as of late December, says Morgan. She expects calls to stabilize at about 2,500 a day in 2008.
2. Expect to be on the phone about 45 minutes.
A counselor will gather information about the caller’s financial situation and make a number of determinations, including eligibility to participate in the initiative.
Home owners are eligible for the initiative if they’re current and expect to stay current after the rate resets but are looking to refinance into a more appropriate loan; they’re current but face possible default after their rate resets, so they need to modify their existing loan or refinance into more affordable financing; or they’re in default before their rate resets.
The initiative applies only to purchase-money mortgages, not home equity loans, and only to borrowers who secured financing during the height of the housing boom — Jan. 1, 2005, to July 31, 2007 — and whose rate resets between Jan. 1, 2008, and July 31, 2010. Lenders estimate some 1.2 million borrowers are eligible.
Of course, the counselors can help borrowers who don’t meet eligibility for the initiative, too. “Most of the calls we receive today continue to be for more traditional types of payment problems,” says Roy Nash, executive director of NeighborWorks Waco, a Texas credit counseling and financial education organization. “Income problems as a result of a job loss and unexpected expenses like a medical emergency continue to be the main reason people call.”
3. Expect a counselor to recommend a course of action.
Typically, two or three hotline calls transpire before the counselor has enough information to make a recommendation, though it might take just one call if the borrower is prepared with paperwork verifying income and monthly expenses.
“The more prepared they are, the more quickly we can help them,” says Daniel Garcia, a counselor with NeighborWorks Waco.
The counselor’s main job is to explain what options are available based on a borrower’s situation and to have the borrower call the mortgage servicer to initiate a workout plan.
In some cases, the counselor will recommend the borrower call another counselor, one in the borrower’s area, and get counseling in person. In other cases, the counselor will contact the servicer directly. To do that, counselors must get the borrowers’ written authorization to act on their behalf.
4. Servicers are increasingly amenable to be flexible.
Garcia says servicers are more willing to take calls and be flexible than before the subprime crisis.
“A lot of these lenders [who also do servicing] are overflowing with REOs and can’t take any more, so they have to do something,” says Garcia. “They’re ramping up their staff to deal with this, hiring and training more people, and giving them more authority.”
Countrywide Home Mortgage, the country’s largest mortgage lender and the servicer for an estimated 82,000 loans whose borrowers fall under Hope Now’s eligibility criteria, has a team of 3,000 handling workout plans, though not only for Hope Now cases.
Wells Fargo has established a dedicated counselor phone line. “If customers go to a counseling agency because they need to get help, and they give the authorization to the counseling agency, we will talk to that third party,” says Patrick Carey, executive vice president of default and retention operations for Wells Fargo.
5. Borrowers are receiving fast-track workout plans based on their eligibility.
Servicers have the most flexibility in working with borrowers who are current on their mortgage and expect to stay current after rates reset. Servicers determine these borrowers’ eligibility for refinancing based on information the servicer already has on file, such as the current loan amount and loan-to-value ratio and the borrowers’ FICO score and credit history.
Refinancing is the typical solution for these borrowers, and the servicer is supposed to recommend the best available replacement product for the borrower, even if that product isn’t one offered by a lender affiliated with the servicer’s company.
Carey of Wells Fargo says his company is prepared to do that. “Whatever works best for customers’ financial circumstance, we will work with them to accomplish,” he says.
The servicers are also supposed to help borrowers avoid prepayment penalties in a refinancing, though that might be easier said than done because many subprime loans come with stiff prepayment penalties. The initiative recommends—rather than requires—that servicers modify the original loan to eliminate a penalty. At the same time, investor rules for securities backed by these mortgages govern what servicers can and can’t do, so any attempt to modify a provision such as a prepayment penalty without investors’ OK can invite a lawsuit.
“Any servicers who service loans for others, as most of us do, are governed by the constraints or the guidelines of the investors who own the loans,” says Carey. “Unless you’re delegated to do something, you have to get approval to do it.”
Industry executives and government officials who designed the initiative think they’ve worked out a solution, though, because these kinds of problems were discussed before all parties, including investor representatives, signed off on the agreement.
“With the investor community on board and as a clear beneficiary of this approach, the risk of litigation should be manageable,” said U.S. Treasury Secretary Henry Paulson Jr., who spoke about the initiative in early December.
6. A rate freeze applies to some, not all, borrowers.
The interest-rate freeze that attracted the bulk of media attention when the president announced the initiative applies only to a specific subset of borrowers: those who are current on their mortgage but don’t have the financial wherewithal to stay current once their interest rate bumps up and can’t qualify to refinance.
The freeze is intended to buy these borrowers time to fix their situation. “There are some responsible home owners who can avoid foreclosure with some assistance,” President Bush said when he announced the initiative. “We don’t want to bail out those who recklessly took out a mortgage they couldn’t afford.”
Thus, home owners who’ve suffered a job loss or a costly medical situation may not be eligible for the freeze; to qualify, borrowers also have to have secured their financing during the eligibility window and be current before their rate’s reset.
The recourse for ineligible borrowers is traditional financial counseling, says Morgan.
7. Traditional remedies are open to the most troubled borrowers.
The last group of borrowers the initiative is designed to address includes home owners who are unable to make their payments even before the rate resets. For these borrowers, servicers have few options other than to find the least painful loss mitigation strategy.
“This is when we shift the discussion to deed in lieu of foreclosure or short sale, because these approaches give customers the opportunity to leave that property without going through the foreclosure process,” says Carey.
If borrowers in this situation first call a servicer rather than a counselor, it’s not uncommon for the servicer to refer them to a counselor before any action is taken. The borrowers might be good candidates for various assistance programs available through counselors.
“A lot of times now, the lender is directly referring the client to the Hope Now hotline, and in turn it gets referred to us,” says Garcia of NeighborWorks. “That’s a good thing.”
Counselors often bring a broader view of possible solutions than the servicer can offer. “We can direct them to organizations that can help them gain more income or help them temporarily with utility assistance. And we can also credit counsel them—help them budget better,” says Garcia.
The most important advice you can give is to encourage borrowers to call the hotline and start the process of seeking a solution to their financing woes.
Carey of Wells Fargo emphasized that servicers can do nothing until borrowers call.
“One of the biggest challenges we have in the industry is being able to even have these discussions that can help them,” says Carey. “That’s why it’s so important that they pick up the phone.”
--------------------------------------------------------------------------------
Different Help for Different Borrowers
Troubled borrowers who call the Hope Now hotline, 888-995-4673 (888-995-HOPE), will find that their solution will depend on their situation.
Owners who are able to stay current even with a rate reset:
Solution: Counseling and refinancing. Lenders may be able to take these borrowers through a fast-track process into a more affordable loan.
Potential pitfall: Prepayment penalty. Borrowers are encouraged to time their refinancing to after the rate reset, since penalties often apply only during the initial rate period.
Owners who face default after a rate reset:
Solution: Counseling and rate freeze of up to five years. To qualify, they must be ineligible for refinancing (e.g., have a loan-to-value ratio of greater than 97 percent), occupy the property as a primary residence, and have a credit score of less than 660 that hasn’t improved more than 10 percent since the loan was originated.
Potential pitfall: The rate freeze is temporary; borrowers still need to work out a long-term solution
Owners already in default:
Solution: Counseling and a loss-mitigation strategy, such as a short sale or deed in lieu of foreclosure. Under the mortgage debt foregiveness law signed by President Bush Dec. 20, borrowers who receive debt foregiveness as part of a loan workout over the next three years won’t have to pay federal tax on the forgiven amount.
Potential pitfall: Those who don’t call in time may not be able to avoid foreclosure.
http://www.realtor.org/rmomag.NSF/pages/featurefeb08?OpenDocument
Saturday, January 26, 2008
How big did you say it was????
The square foot dilemma faces me almost every time I visit with a Seller and Buyer. The Seller is always looking for ways to maximize their sale and one easy way is to provide the highest square footage measurement available (“did your sight-impaired uncle measure this???”). The Buyer is always asking, “What is the square footage?” and “what does that come out to per square foot?” to try to justify their purchase in this expensive metro area. Unfortunately, there is no standardized way to measure properties (“what happened to tape measurers?”). I know of many local developers that measure fifty percent of the area INTO any adjacent walls of the neighboring condo owner or common area. If five people go in and measure a condo or loft, I always assume that we will have five different measurements. The tax records provided by DC are infamously incorrect. So what is a condo seller or buyer to do? The best way to establish the square footage is to measure it yourself. (Or hire an engineer or architect to do so, but of course that is costly.) A recent article in the New York Magazine by Jhoanna Robledo, “The Floor-Space Fallacy” quotes Stacey Max a Real Estate Agent in NYC, “People are DESPARATE to quantify their decisions, and (square footage) is one of the few things in real estate with numbers attached to it. How do you quantify view? Or light?” I agree that the BEST thing for a Buyer to do is forget the feet and focus on whether the space actually meets their criteria. “In the end, says Max, the numbers may not be all that useful.” I have found that it is the layout and floor plan that is just as important. As an example, there are some GREAT 1200 square foot 2BR units that feature thoughtful floor plans that feel wonderful. Across the street in a similar product you might have a 1500 square foot 2BR condo that is awkward, uncomfortable and has a dreadfully lay out, little light and no view.
Some helpful hints for Buyers: (1) Make sure to spend plenty of time looking around and getting a feel for what your money can buy and how much space your money will buy (2) compare amenities, quality of product, finishes, light, views, design, etc. in each building as this can trump square footage (3) compare neighborhoods (4) hire a knowledgeable Realtor®, as they can save you lots of time and can educate you on the best buildings (5) make sure to read the Condo or Coop docs when making an offer to see if the building has any financial, legal or other issues (6) try to buy the best quality in the best location you can afford as these properties tend to appreciate more and are more stable when there are downturns in the market, and (7) buy a place you love!
Some helpful hints for Buyers: (1) Make sure to spend plenty of time looking around and getting a feel for what your money can buy and how much space your money will buy (2) compare amenities, quality of product, finishes, light, views, design, etc. in each building as this can trump square footage (3) compare neighborhoods (4) hire a knowledgeable Realtor®, as they can save you lots of time and can educate you on the best buildings (5) make sure to read the Condo or Coop docs when making an offer to see if the building has any financial, legal or other issues (6) try to buy the best quality in the best location you can afford as these properties tend to appreciate more and are more stable when there are downturns in the market, and (7) buy a place you love!
Wednesday, January 23, 2008
Ready for today?
When I spoke with friends and clients on Tuesday (January 22nd) many were asking me if I was "ready for today?" I am generally "ready for anyday" as I wake up at 4:30am, hit the gym for a hard workout, have a hearty breakfast, you know...get ready for the day. Oh, I got it as they grabbed their wallets and held on to them dearly...the stock market! Financial markets around the world fell substantially overnight; what was in store for Wall Street? Well, I learned some wisdom back in 1987 as I was living in NYC when "Black Monday" occured back in October 1987. Markets (financial and real estate) are cyclical. The longer the investment period the better your chances are of a large return. Day trading in the financial market is very risky and few are successful. The same goes for residential real estate; a.k.a. a home. A home is first for shelter. We all need a form of shelter, so I decided years ago that I would prefer to pay for my own mortgage rather than someone elses. But, buying real estate and then selling withing a year or two can be just as risky; I call it "real estate day trading" or as it is more commonly referred to as "flipping". Real estate can be a great investment as a home but in many other forms as well. Having rental property is a great way to create long-term wealth. I have been trained to diversify my financial holdings in both the financial market and the real estate market. I have a professional advisor who handles my portfolio and having such an advisor gives me great comfort; especially in turbulant times. Professionals at the top of their game know how to perform in any market. We can not control the financial or real estate markets, but we can control our decisions. Making sound, long-term investments will help prevent you from worrying and you will be "ready for today".
Tuesday, January 15, 2008
Washington DC condo/coop statistics for 2007
Well the numbers are in!!! Although I track inventory all year long to assist my many Buyers and Sellers, it seems that everyone is interested in "the official" year end statistics. Well for your viewing pleasure, here they are:
WASHINGTON DC CONDO/COOP HOUSING REPORT
DATA SOURCE: Metropolitan Regional Information Systems, Inc. (MRIS)
The AVERAGE PRICE for condos/coops in Washington DC for 2007 was $405,271....relatively unchanged from the 2006 average price of $406,501.
The MEDIUM PRICE for condos/coops in 2007 was also relatively flat;
with the price changing from $354,100 to $350,000; or about 1%.
Inventory was at the second lowest level in December 2007 at just below 1200 available units; only with February coming in with a slighly lower number. This should translate into a good spring market; especially as interest rates are trending lower.
So things continue to look good here in the Capital real estate market!
WASHINGTON DC CONDO/COOP HOUSING REPORT
DATA SOURCE: Metropolitan Regional Information Systems, Inc. (MRIS)
The AVERAGE PRICE for condos/coops in Washington DC for 2007 was $405,271....relatively unchanged from the 2006 average price of $406,501.
The MEDIUM PRICE for condos/coops in 2007 was also relatively flat;
with the price changing from $354,100 to $350,000; or about 1%.
Inventory was at the second lowest level in December 2007 at just below 1200 available units; only with February coming in with a slighly lower number. This should translate into a good spring market; especially as interest rates are trending lower.
So things continue to look good here in the Capital real estate market!
Thursday, January 3, 2008
What does 2008 have in store for the DC area loft/condo real estate market?
Well the good news is the developer-stork has slowed down deliveries of all those lofts and condos in downtown. Basic economics is always in play in real estate; a Seller's market reflects a lack of supply (and generally higher demand) and a Buyer's market reflects over supply (and thus lower demand) for homes. The press is loving all the bad news and statistics out there right now as bad news sells stories; not good news. Well there is definitely some bad news out there, but as I have written in my Quarterly Newsletter for the past year, there are many stories and statistics out there that show a favorable real estate market here in DC. When I work with Buyers, the "location, location, location" discussion is followed by the importance of "quality" and "uniqueness". When I decided back in 2003 to specialize in lofts, most Agents laughed at such a limiting strategy. I have lived in lofts and love the "loft life". It really is a phenomenal feeling to have soaring ceiling heights of 12 or 20 feet. There are not lots of lofts here in DC like exist where I lived in my first loft, New York City. But, I knew that lofts offered a unique space that would always be limited in downtown DC. Not a demand for lofts in DC? After my first year in Real Estate I was in the top 1% of all Agents in North America!!! Sure, many builders jumped on board and have built loft-like condos (some great and others horrible) but it costs them much more to do so and we will see builders think twice before building more. All this plays into the demand issue and thus has translated into stable investments; especially in the better condos and lofts. 2008 will be another year of appreciation for properties that have the best location, best quality and are unique. Unlike the deliveries from the "real" stork, in real estate you can have 100% control over your purchase and the consequences can be enjoyable and rewarding.
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