Activity in Georgetown residential real estate for last week:
3 new active listings at $379,000, $589,000, and $1,395,000
2 properties under contract with list prices of $828,000, $1,299,000
6 settled properties at $239,000, $489,000, $719,900, $1,160,000, $2,295,000, and $4,950,000
3/10/2010
News from "the front".
One of the questions repeatedly asked of Realtors is one about the state of the market in Georgetown, and the predictions of things to come. Well-informed Realtors can answer that first question with great certainty and with an unequalled view of the market. Predictions of the future are another matter.
Because Realtors are on the front lines of the real estate business every day, they know better than any other group of people (including economists, politicians and soothsayers) what the current state of the market is. Every article written in every publication about the residential real estate market is based on information gleaned from active Realtors...what's selling and what's not...is activity up or down...are prices rising or falling, etc, etc. Also every article is "old news" by the time it reaches us. In the case of the internet, it may be only a day or two old, but unless the article is being written by a Realtor, it is of necessity at least "yesterday's news".
But when it comes to predictions, my crystal ball isn't any better than Bernanke's. I, and other Realtors however, can make as good a guess about the future of real estate...and probably a better one than many. Realtors who are active in the profession, and who have lived through real estate cycles have a visceral knowledge of the market. Or maybe that's an intuition or instinct. In any event, it does give them a long view on a very specific industry which few outsiders possess.
Because Realtors are on the front lines of the real estate business every day, they know better than any other group of people (including economists, politicians and soothsayers) what the current state of the market is. Every article written in every publication about the residential real estate market is based on information gleaned from active Realtors...what's selling and what's not...is activity up or down...are prices rising or falling, etc, etc. Also every article is "old news" by the time it reaches us. In the case of the internet, it may be only a day or two old, but unless the article is being written by a Realtor, it is of necessity at least "yesterday's news".
But when it comes to predictions, my crystal ball isn't any better than Bernanke's. I, and other Realtors however, can make as good a guess about the future of real estate...and probably a better one than many. Realtors who are active in the profession, and who have lived through real estate cycles have a visceral knowledge of the market. Or maybe that's an intuition or instinct. In any event, it does give them a long view on a very specific industry which few outsiders possess.
3/08/2010
And the Oscar goes to...
From what I have seen before, during and after the Oscars ceremony, people are more interested in what the actors were wearing, than what they had accomplished in film. Whatever one thinks about those priorities, it is a good reminder that when putting one's house on the market for sale, looking good is important. So today's Oscar goes to the owners of currently listed properties in Georgetown, who have spent the time and effort to make their properties appealing to would-be buyers. And hopefully the beauty isn't just skin deep!
3/05/2010
Modest "feeding frenzy" in full swing
In some price ranges, the competition for properties is beginning to look like the real estate market of three or four years ago. This is happening mostly with entry-level condos/co-ops ($300-500,000), but has begun to push up into higher-priced properties($500,000 - $1million). In the past couple of weeks we have seen 3-4offers on many properties as investors and first-time buyers compete to buy well-priced properties. This seems to be happening in the Georgetown environs as well as across the City.
Don't get caught in this trap!
One of our buyers recently ratified a contract on a condominium property. The contract called for FHA financing, and the building appeared to have been approved for FHA loans. It took nearly until the day of settlement to obtain loan approval, at which point it was discovered that the building was not approved for FHA financing. Now the settlement date has passed and both buyer and seller are worried about how to work things out.
The reason this got to the place it did is that new FHA guidelines were recently established, one of which was to increase the loan limits to accomodate DC prices, and one of which changed the way the buildings are approved.
Given the higher loan limits for FHA loans, many more of our DC properties have become eligible for FHA. However one of the stumbling blocks for condos is that many buildings are not FHA approved. In the past, one could get this approval using “spot approvals” which would allow financing for the unit under contract. Under new FHA guidelines, that is no longer possible. Thankfully, though there is another way. It’s called DELRAP (I didn’t choose the acronym!). It’s the name of the process through which a direct endorsement lender is required to approve the entire building for FHA financing. I am told that Wells Fargo can do this within 7-9business days of receiving all documentation necessary for review.
If you would like more specific information about this process, let me know and I'll send more. darrell@lnf.com
The reason this got to the place it did is that new FHA guidelines were recently established, one of which was to increase the loan limits to accomodate DC prices, and one of which changed the way the buildings are approved.
Given the higher loan limits for FHA loans, many more of our DC properties have become eligible for FHA. However one of the stumbling blocks for condos is that many buildings are not FHA approved. In the past, one could get this approval using “spot approvals” which would allow financing for the unit under contract. Under new FHA guidelines, that is no longer possible. Thankfully, though there is another way. It’s called DELRAP (I didn’t choose the acronym!). It’s the name of the process through which a direct endorsement lender is required to approve the entire building for FHA financing. I am told that Wells Fargo can do this within 7-9business days of receiving all documentation necessary for review.
If you would like more specific information about this process, let me know and I'll send more. darrell@lnf.com
3/03/2010
Several hopeful signs…and other interesting housing developments.
One of the first questions I am always asked when talking with people about real estate is, "Have we hit bottom?". I wish I knew the answer, but as I have said before, we won't know until we have left the bottom behind (no pun intended). But here are what some sources have to say about the current state of our market.
1. Investors are competing with first-time home buyers for entry level properties. This is one of the reasons the number of sales is holding steady or going up, while prices have not gone up. Many agents in our Georgetown office have experienced this first-hand when working with first-time buyers. The competition for these properties has been fierce with three and four competing offers on a given property. There is an interesting article at RealEstateEconomyWatch.com, Steve Cook, (2/26/10); and another at NAR.org.
2. Warren Buffett thinks the housing market will recover by 2011. Good article at Bloomberg.com, Andrew Frye, (03/01/10)
3. The Obama administration is apparently working on an idea which would prohibit lenders from foreclosing on a home under certain circumstances. See an article at DSNews.com, Carrie Bay, (02/26/2010)
4. The Lender Processing Services (LPS) organization doesn’t think the “recovery” has begun. By that I think they mean that we haven’t hit the bottom of the market. Another way to look at things is that working through the inventory of foreclosures and short sales is the first part of the recovery. The fact that there is a concerted, successful effort at solving the housing problems is a positive sign, especially when the opposite possibility would be throwing up our arms and letting everything go to the dogs. Read the article at DSNews.com, Carrie Bay, (02/25/2010)
1. Investors are competing with first-time home buyers for entry level properties. This is one of the reasons the number of sales is holding steady or going up, while prices have not gone up. Many agents in our Georgetown office have experienced this first-hand when working with first-time buyers. The competition for these properties has been fierce with three and four competing offers on a given property. There is an interesting article at RealEstateEconomyWatch.com, Steve Cook, (2/26/10); and another at NAR.org.
2. Warren Buffett thinks the housing market will recover by 2011. Good article at Bloomberg.com, Andrew Frye, (03/01/10)
3. The Obama administration is apparently working on an idea which would prohibit lenders from foreclosing on a home under certain circumstances. See an article at DSNews.com, Carrie Bay, (02/26/2010)
4. The Lender Processing Services (LPS) organization doesn’t think the “recovery” has begun. By that I think they mean that we haven’t hit the bottom of the market. Another way to look at things is that working through the inventory of foreclosures and short sales is the first part of the recovery. The fact that there is a concerted, successful effort at solving the housing problems is a positive sign, especially when the opposite possibility would be throwing up our arms and letting everything go to the dogs. Read the article at DSNews.com, Carrie Bay, (02/25/2010)
African-Americans who lived and worked in Georgetown
Following is an announcement from "thegeorgetowndish.com". Good opportunity to learn about some of the history of the Georgetown community and specifically some of the former property owners.
Postponed, due to Snowmageddon, Black History Month lecture by best-selling author Breena Clarke will take place Saturday, March 6th at Dumbarton House starting at 1:30 pm. Celebrating Washington's rich history of African-American life and contributions, Ms. Clarke will discuss her novels Stand the Storm, set in Georgetown during the Civil War, and River and Cross My Heart (an Oprah’s Book Club selection). Ms. Clarke will share her research about the enslaved and free African-Americans who lived and worked in the Georgetown community. Sponsored by The DC Society of The National Society of The Colonial Dames of America. Fee: Non member $10; Members free. Rsvp@DumbartonHouse.org or 202-337-2288.
Postponed, due to Snowmageddon, Black History Month lecture by best-selling author Breena Clarke will take place Saturday, March 6th at Dumbarton House starting at 1:30 pm. Celebrating Washington's rich history of African-American life and contributions, Ms. Clarke will discuss her novels Stand the Storm, set in Georgetown during the Civil War, and River and Cross My Heart (an Oprah’s Book Club selection). Ms. Clarke will share her research about the enslaved and free African-Americans who lived and worked in the Georgetown community. Sponsored by The DC Society of The National Society of The Colonial Dames of America. Fee: Non member $10; Members free. Rsvp@DumbartonHouse.org or 202-337-2288.
Subscribe to:
Posts (Atom)
