May 2009

Figuring out the Vienna home market… April 2009

With all you read about the housing market, buying a Vienna home appears to be a safe bet right now. I just looked over resale data from MRIS of the Vienna zip codes ( 22180-22182)  for the month of April and the biggest gains seem to be in the 22182 zip code… looking at the number of sales.

• Total Units Sold in April 2009, 23 vs. 13 in 2008 (up 76%)
• Average Sold Price in April 2009, $760,479 vs. $750,923 in 2008 (up 1.27%)
• In the $500,000 to $599,999 range, 2 sold of 23 active listings
• In the $600,000 to $699,999 range, 6 sold of 28 active listings
• In the $700,000 to $799,999 range, 6 sold of 33 active listings
• Average days on market in April 2009 is 102 vs. 100 in 2008
• The average sold price in April 2009 was 91.74% of average list price

So this market remains highly competitive as we head further into the “Spring Market” with home sellers waiting anxiously for buyers to make offers. And with such a large inventory for sale in the 22182 average  price range, the home buyers remain in control of the housing market.

No short-term loans as HUD pulls the plug

Well, the Tax Credit loan plan is off the table, and HUD took the memo off the web site too. It seems that someone decided to analyze some potential issues… which should have been done before posting it on the crazy world of the Internet.

I started to read about this new program in a few blog posts over the past few days and then asked a few local loan officers for details. A few l.o.’s had no idea what I was talking about, but another followed up this afternoon with the news about the plug pulling.

Now local mortgage guy John Lam gets a gold star!

Overall, in my professional opinion, it seemed a little too much like a “pay-day” loan to me.

Could my earlier post have played a role? Maybe I need to alert some other sites around the country.

The short-term loan for the first-timer tax credit program…

We want our $8,000 first-timer tax credit at closing! And we aren’t gonna wait!

“Okay”says HUD Assistant Secretary Montgomery in the “Mortgagee Letter 2009-15″ that is dated May 11th.

Of course you can’t take out the whole $8,000 at closing since there are fees and expenses that need to be paid, and the $8,000 hard limit can’t be exceeded. So watch your step first-timers and don’t lose your whole credit to outrageous fees.

Could this be another ticking time-bomb for potential fraud and consumer abuse? Setting up an unwitting newbie for an IRS tax penalty?  Tread carefully with your mortgage lender.

The memo uses terms like “short-term credit advance loan” and “bridge loan” seem like family members of the “pay-day loan” and we all know how hit-or-miss that industry turned out. And the “Instant Refund” loans ran into a few problems with the California Attorney General.

Better yet, there aren’t any set interest rates or fees in the memorandum. So it is up to the market to figure out what “fees and charges” are not to exceed a nominal amount necessary really means. Even the biggest lenders haven’t digested this one yet and I plan on keeping tabs on the subject.

Okay America, you demanded your money right now and permission has been granted… just don’t let your nice credit get eaten up in fees or get you in trouble with the IRS.

If you rebuild the I66 and Route 123 overpass, then you will get elected in Virginia

This 1/2 mile stretch of Interstate 66 needs rebuilding right now . There must be existing VDOT designs to make this a “shovel-ready” project qualifying for immediate federal funding.

The problem is I66 tapers down in both directions to get under the existing 1960′s era overpasses, and when rush hour hits or there is one lane blocked, it causes a classic sphincter effect that can last hours.

Here is the area thanks to The Google:

View Larger Map

Here is the #1 best projects that VDOT could do:

• Replace the Jermantown Road overpass

• Replace the Route 123 overpass, and re-engineer the 123/66 clover leaf

The annual number of delays caused by this 1960′s design is incredible. Anyone who is even thinking of living west of the Vienna Metro Station dreads the thought of driving on this part of I66 at any time of day, seven days a week. Solving this problem would virtually guarantee election to office.

What do you think, gov?

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