Archive for May, 2008
Fannie Mae Announces Change in Down Payment Policy for “Declining Markets”
May 17th, 2008 Categories: Mortgage Update, Real Estate News
Fannie Mae - the country’s largest secondary has announced that it will no longer require an extra 5% down payment for home purchases in areas deemed as “declining markets.”
Long a point of contention with agents and brokers across the country, the earlier Fannie Mae policy was seen as a deterrent to consumers who wanted – and could – purchase a home in markets hardest hit by foreclosures. As Dick Gaylord, president of the National Association of Realtors (NRA) noted, “It stigmatized communities with lower sales and prices.”
The announcement comes after months of talks between Fannie Mae officials and and the NAR. Under the new policy, which goes into effect June 1, borrowers can get loans up to 95% loan-to-value, even in markets where prices have been falling. Prior to this, borrowers could only get loans up to 90% – a way to give lenders a 5% point cushion against possible future declines.
To read the full announcement from Fannie Mae, click here.
Michael
| Currently No Comments »
12 Homes With A Centennial Flair Are Featured on Del Ray’s 2008 House & Garden Tour
May 16th, 2008 Categories: Del Ray
As part of the ongoing centennial celebration for the Town of Potomac – now know as Del Ray – bungalows, Victorians and craftsman style homes will take center stage on the 2008 House and Garden Tour tomorrow, May 17. Tickets are $15 at A Show of Hands, 2204 Mt. Vernon Avenue (703.683.2905) or at the Del Ray Farmer’s Market.
There is not a moment to waste so let’s get started.
The first house listed on the tour is an original Sears house at 220 East Bellefonte Avenue. The owners collect religious artifacts and contemporary art and pieces are featured throughout the house. Of note in the yard are custom wrought iron gates and the original garage build in the 1940’s.
A periwinkle, purple and chartreuse Victorian cottage is next at 28 East Howell Avenue. Built around 1905, the house still has its original fish scale shingles. The current owners have added floor-to-ceiling built-in cabinets in the living room, a renovated master bedroom and nursery and french doors to a new deck.
Side by side properties at 20 and 22 East Windsor again reflect a Victorian sensibility. The first house at 20 East Windsor was built in 1893 and is well known for its unique architecture and use of stained glass. A distinguishing feature is the square tower that extends two stories into a third floor cupola (sorry I couldn’t get it in this shot).
The Victorian ’sister’ next door at 22 East Windsor was built two years later in 1895 and while it has been extensively renovated, hardwood floors, detailed hinges and door hardware, and curved plaster walls are still hallmarks of this Del Ray classic.
| Currently 5 Comments »
Lifting the Veil of Confusion – Changes Are In Store for the Multiple Listing Service (MLS)
May 16th, 2008 Categories: Real Estate News
First, let me thank my fellow Coldwell Banker realtor, Susie Blackmon in Ashville, NC, for alerting me -and other readers – to an article that appeared earlier this week in the New York Times. Basically the author, Bob Tedeschi, writes about how the some 900 multiple listing services (MLS) around the country are beginning to loosen restrictions on what can be listed and where.
Ultimately, opening the MLS to all comers (for sale by owner, bank foreclosurers, etc.) will give buyers and sellers alike the opportunity to cast the widest possible net to complete a sales transaction. On the other hand, agents should embrace this new trend and adjust their own strategies to complement the extraordinary reach of the world wide Web. My friend Susie is an adamant proponent of transparency in all things real estate and I can’t say that I disagree.
To read the complete NYT article, click here.
Have a good Friday,
Michael
| Currently 2 Comments »
Alexandria Celebrates “Bike to Work” Day As Affordable, Efficient and Environmentally Friendly
May 15th, 2008 Categories: Alexandria, Green Living
Just on the heels of being named as the top walking city in Virginia, Alexandria will recognize national Bike to Work day on Friday, May 16th. Thousands of cyclists across the area will celebrate bicycle commuting as an affordable, efficient and environmentally friendly way of getting to work. It will also demonstrate that the region’s transportation network makes cycling in Alexandria and the greater Washington metropolitan area a feasible and safe travel option.
More than 20 “pit stops” will be available to the commuter cyclists. In Alexandria, the pit stop will take place from 6:30am to 8:30am at Market Square in the heart of Old Town (301 King Street). Cyclists will receive free food, beverages and a variety of services from local businesses and sponsors. A Metrobus will be on hand for cyclists to practice loading and unloading their bikes. Bikes are also permitted on Metro trains.
Alexandria participants will have a chance to win several grand prizes as part of a raffle that will take place at 8:00am. Those prizes include:
- Jannis Commuter 3 bike, courtesy of Wheel Nuts Bike Shop
- Free weekend night stay at the new Hotel Monaco, courtesy of Hotel Monaco
- Complete Performance Overall tune up gift, courtesy of Wheel Nuts Bike Shop
- $100 dining gift certificate, courtesy of HSBC bank
So what are you waiting for? Shimmy into your riding shorts, strap on your cleats, grab your helmet and let’s get going!
Michael
| Currently 2 Comments »
Why NOT Buy Now? Rare Market Conditions are Skewing Survey Results and Creating Needless Anxiety
May 14th, 2008 Categories: Real Estate News
For too many long months now, real estate agents and brokers across the country have bemoaned the relentless bad news about the housing market. Without context the numbers are daunting. Without context the information is undeniably grim. Without context no one would ever buy or sell a home again.
So let’s look at the context. No less a personage than David Blitzer, S&P Index Committee Chair, has acknowledged his organizations’ overall and metro-readings paint an incomplete picture. Early this month, top officials with the National Association of Realtors and Standard & Poor’s (which issues the S&P/Case-Shiller Home Price Index) admitted that their monthly reports are giving imprecise readings of price changes at all levels – national, state and regional – due to rare market conditions that are skewing survey results.
This is really just the tip of the iceberg. Click here to get the full, must read, story from Blanche Evans, an award winning journalist with Realty Times.
And when you’ve finished reading the good news, in context, give me a call at 703.927.4554 and I’ll help you find that house you’ve been talking about.
Michael
| Currently 1 Comment »
Alexandria Named BEST WALKING CITY in Virginia and #21 in the Nation
May 13th, 2008 Categories: Alexandria
Just a few months ago I did an article on “walkability” and what it means to home owners and home buyers. Now, Prevention magazine has named Alexandria as THE BEST walking city in Virginia and ranked it #21 in the nation.
Prevention teams up every year with The American Podiatric Medical Association to measure the walkability of America’s cities. This year cities were evaluated on 14 criteria including:
- the percentage of adults who walk to work
- number of parks per square mile
- use of mass transit
- percentage of adults who walk for fitness
Alexandria earned 3.2 points out of 4 and scored the second highest percentage for people who use mass transit. Alexandria also has the most green space in Virginia with 2.99 parks per square mile and ranked fifth as the most park-dense city in the nation.
Our neighbors across the river did pretty well too – check out Debbie Cook at the Silver Bee for Maryland rankings.
Not only is Alexandria a great, walkable city, it is a great place to live. Interested in knowing more about the local real estate market? Give me a call today at 703.927.4554.
Thanks for stopping by,
Michael
| Currently No Comments »
Two Small But Important Changes in Today’s Mortgage Update
May 12th, 2008 Categories: Mortgage Update, Real Estate News
1) Rates held steady this week with the only real change coming in “Conforming Jumbo” conventional loans between $417,000 and $727.750. The rate on these loans came down relative to the regular Conforming loans up to $417,000. For the past month or so the relationship between the Conforming Jumbo and the regular Conforming loans held steady with an approximate difference of .75%. At Friday’s market close the gap had narrowed to a .375% difference. Remember though, both of these loans require a 15% down payment.
2) While economic indicators continue to highlight an economy that is neither growing or shrinking, the ISM Services Index showed a surprise 52.0 reading. Any reading over 50 is considered a sign of growth in the service segment of the economy. Analysts had expected it to hold steady at 49.5.
Remember, the right house at the right price is always a good investment
Michael
Many thanks to Rob Clark at Preferred Mortgage for this timely information.
| Currently No Comments »
Angry Alexandria Consumers Want to Know – Where Are the Grits?
May 11th, 2008 Categories: Dining Favorites
Our original plans for Mother’s Day were centered around a low key evening of grilling and dining on our back patio. Torrential rain storms and chilly temperatures made moving inside a wise decision. But it also meant a menu change. We are “challenged” for space in our dining area so when more than three or four are gathered together it is strictly buffet and we always try for an easy, one utensil meal. We settled on shrimp (do you notice a trend here?) and grits and a green salad and set off to do our shopping.
We wanted stone ground grits, an artisanal delicacy with a distinct coarse texture and taste. Giant had “quick” grits – ugh. Balducci’s had not a single grit of any kind. Safeway had regular Uncle Ben’s Grits (ok in a pinch) and Whole Foods had “Corn Grits also known as Polenta”. Now, I know people like to think that polenta and grits are the same thing but they’re not, not really. Besides, the corn grits came from Oregon and everyone knows that grits do not grow in Oregon. Four markets in one day was more than enough for me so Harris Teeter and Trader Joe are off the hook on this one.
Tonight we will have to settle for Uncle Ben but tomorrow I’m checking in with www.Hoppinjohns.com first thing and ordering in my supply of stone ground grits. To paraphrase Scarlett, ” . . . . I’ll neva go hungry for stone ground grits agin.”
Happy Mothers Day to all women who have nurtured and loved,
Virginia and Michael
| Currently No Comments »
“Royal Reds” Are A Shrimp Lover’s Dream
May 9th, 2008 Categories: Dining Favorites
I was cruising the Food section of the Washington Post last week when an article by John Martin Taylor caught my eye and three words came spinning off the page - shrimp, Thunderbolt, and the Williamses.
I love shrimp, I spent every summer of my growing up on Wilmington Island (just over the bridge from Thunderbolt and Savannah) and our favorite road side dinner was the now defunct “Williams Seafood.”
If you’ve been looking for some new shrimp recipe’s or just want to add to your culinary knowledge about “royal reds“, check out John’s article, you’ll be glad you did.
Check out his online store too at www.hoppinjohns.net.
Virginia
| Currently 5 Comments »
Mortgage Update: The Price of Oil Is Driving Interest Rate Activity and Second Appraisals for FHA Loans
May 7th, 2008 Categories: Alexandria, Real Estate News
The Federal Reserve cut rates again last week but with seemingly little impact. Fear of inflation – driven by the cost of oil – seems to be the biggest factor in the interest rate market with 30 year conventional conforming loans at 6% with 0 points as are FHA 30 year fixed rate loans. The 30 year FHA plus loan (up to $729,000+) is holding at 6.25%.
A word about those FHA loans that is critical to you and your agent. FHA loans of more than $417,000 in a declining market (ours as defined by every lender), with less than 5% down, REQUIRE a second appraisal. The lender is in charge of ordering the second appraisal. The broker has NO influence on who is being used for the second appraisal and cannot have ANY contact with the appraiser.
The buyer pays the cost and the inspection is on the exterior only. If the value comes in more than 5% lower than the sales price, the lender will base the loan amount on the lower appraised value. If you are a potential FHA buyer and your agent doesn’t know about this second appraisal, then you may want to look elsewhere for someone who is more knowledgeable about the current market.
Need more information about where to look for a reputable mortgage broker? Call me at 703.927.4554 and let me help you.
Michael
| Currently No Comments »
; ?>/images/MatoChiclet.gif)
