Monday, March 15, 2010 4:57:24 PM
More Positive News

Similar to most counties in Northern Virginia, the District also had a favorable February.

The total dollar volume that was sold in D.C. rose 28.2 percent to $156.04 million, and 34.63 percent more units sold in February 2010 than in February 2009. Though, those 346 units sold last month in D.C. saw a slightly lower median sale price of $340,000, 5.6 percent less compared with a year ago, but the average days those units spent on the market dropped 25.9 percent to 83 days. D.C.’s average home sale price was up in February, at 92.7 percent of the average list price compared with 89.8 of the average list price in February 2009.

In suburban Maryland, a higher number of homes sold, while the average days they spent on the market fell.

During February, 508 units sold in Montgomery County, equaling 13.4 percent more than the same month last year. Those units spent 79 days on the market, 33 percent less time than in February 2009. The total sold dollar volume in the county was up 9.7 percent to $207.32 million, and the median sale price increased 4.6 percent to $330,000. The average list price was 93.5 percent of the average sale price in February compared with an average list price that was just 89.1 percent of the average sale price in February 2009
Wednesday, March 10, 2010 7:57:55 PM
Bubble Markets.
Bubble market or solid economic fundamentals: Lessons we can learn from the Canadians by Dan Krell © 2010 Bubble housing markets occur when real estate markets, either local or regional, are overvalued. The cause of bubble markets is often debated, as has been hotly argued in recent times, to be the cause of speculation and/or credit policies. There are several real estate markets that have rebounded much faster than most such that they are in danger of becoming bubble markets. Some economists rank the real estate markets in China, Australia, and Canada as having the highest risk of becoming the next busted bubble market. Because of Canada’s close proximity and similar real estate market, we’re compelled to take a closer look. Canada’s equivalent to the Federal Reserve Bank is called the Bank of Canada (www.bank-banque-canada.ca) and much like the Fed, the Bank of Canada is a central bank that offers advice on monetary policy. The Deputy Director of the Bank of Canada, Timothy Lane, PhD, offered his analysis on the current situation that is occurring in Canada’s real estate market in a speech given on his behalf on January 11th, 2010. Although Dr. Lane’s speech was delivered by an advisor, in what may seem like a déjà-vu to Americans, there was somewhat of a denial of a bubble market. The Deputy Director maintained that fundamentals of the Canadian market are intact, such that recent increases in home prices are not unusual for supply and demand economics. As Canadian housing starts are below the target to meet population growth requirements, the Deputy Director made clear that inventories were diminishing as well. Although Dr. Lane’s opinion is that housing bubbles are fueled by credit expansion, and that recent growth in the Canadian housing market is due to low interest rates and pent up demand. Mr. Lane pointed out that the Canadian housing market was not as turbulent as the market in the United States because Canadian home price appreciation was not as steep. The resulting turbulence manifested in sharp declines in American housing, while Canadian housing fared much better. Similarities between the current Canadian housing market and the U.S. market prior to the global recession includes: historically low mortgage interest rates, reduced inventory, and increased real estate speculation. The role of increased real estate speculation is of interest because it is not only the domestic investors fueling the Canadian market, but foreign investor looking for large gains. However, fundamental differences also exist between the markets. Dr. Lane pointed out that the Canadian mortgage system is inherently different than its counterpart in the U.S. Canadian mortgage guidelines are written primarily by mortgage insurers because mortgage insurance is compulsory for mortgages with less than a 20% down payment. Additionally, about 70% of Canadian mortgages are held by the lending institution (rather than becoming securitized) forcing the lender to make more responsible lending decisions. Deputy Director Lane’s summation was that the Canadian housing market requires “vigilance, but not alarm.” However, they may not have much choice but to ride out market disturbances because any intervention may stall the recovering Canadian economy in a global recessionary environment. Time will tell whether the Canadian real estate market is a bubble waiting to burst, or just a manifestation of solid economic principles. Either way, we will learn whether prudent mortgage policies can play a part in mitigating future real estate bubbles here in the U.S. This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of March 8, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell
Friday, March 05, 2010 12:37:33 PM
Five Great Blogs For Real Estate

It’s no secret that real estate is our full-time job – but it shouldn’t have to be yours.  All too often, we’ve seen folks become so caught up in sifting through the nuance of buying or selling a home in the DC area, that they become overwhelmed by the effort and the time it consumes.

Taking the time to learn and explore is by no means a bad thing, but you don’t have to reinvent the wheel.  There are plenty of informative resources available to help you navigate the market, and understand what’s involved in buying and selling property.  Below are five blogs of note that we’ll often turn to as resources, and as entertaining industry reads.

  1. Bubble Meter: Devoted to covering and discussing the decline of the “housing bubble” in the economic recession, Bubble Meter, pays extra attention to the D.C. area, but offers commentary and coverage of national reports as well. This blog offers plenty of superb insight on the economics behind the real estate markets.
  2. Inman News: A news site geared primarily toward real estate professionals, Inman News nonetheless proves a valuable resource for anyone entering the market. Providing industry reports and updates, columns, and interesting features – “The first home online” is a search to find the first-ever real estate listing posted online – Inman News offers a great deal of information in an easy-to-navigate format. It’s a good way to stay current.
  3. Real Estate Cafe: Directed straight at investors, Real Estate Cafe offers insight and commentary on real estate news with the intention of helping buyers and sellers save money and understand factors affecting the marketplace. Post address, among other things, economic issues, tricks to look out for and ways investors can do more for themselves. Even though it’s centered on Massachusetts, the insight is valid and applicable anywhere.
  4. Urban Trekker: Focused entirely on real estate matters in the Washington, D.C. Metro, Urban Trekker monitors regulatory developments, green living issues, urban living and real estate news. Looking for locally-specific insight, Urban Trekker has a lot to offer from discussions of commuter traffic, ecologically-sound construction and property value.
  5. Zillow Blog: Zillow.com is a free real estate reference guide offering investors listings, real estate value statistics and public records information regarding home prices. Its blog parallels Zillow’s overall mission and is an informative resource itself. But the Zillow Blog, when it isn’t illuminating financial and market issues that confuse many investors, lightens the shop-talk with entertaining real estate stats – including a a breakdown of celebrity home prices. It’s an entertaining read that also offers some valuable insight.

Of course, we’d throw AllThingsWashDC into the mix as well!  Any others
Monday, June 28, 2010
Monday, June 28, 2010
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