Realty Digest
A Quirky Collection of News and Information
From The Service You Can Trust Team

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September 23, 2006 ****


Thank you, the many faithful readers of this newsletter. Do send along your comments, questions and even referrals. And feel to pass along Realty Digest to anyone you know who may be moving. Most of all, have a great autumn!

IN THIS ISSUE:



Items of Interest
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COSTLY LOANS HAVE GAINED IN POPULARITY: In another indication of increasing consumer debt, a new federal report has found that the percentage of borrowers who turned to high-cost loans to buy or refinance their houses rose last year, reports the Washington Post. Such loans accounted for 26.2 percent of mortgages in 2005, up from 15.5 percent in 2004, an increase of nearly 70 percent, according to home-loan data. In 1994, only 5 percent of borrowers had high-cost loans. Federal regulators define high-cost loans as those with interest rates 3 percentage points higher than a benchmark rate for first mortgages and 5 percentage points higher for second mortgages. There is wide racial and ethnic disparity in who gets such loans, according to the numbers. About half of blacks and Hispanics received high-price mortgages, compared with less than a fifth of whites. In 2005, 54.7 percent of blacks got higher-price loans, up from 32.4 percent in 2004. The increase was even sharper among Hispanics, of whom 46.1 percent got high-cost loans, up from 20.3 percent in 2004. In 2005, 17.2 percent of whites got such loans, compared with 8.7 percent the previous year. Part of the explanation for the 2005 increase, according to the Federal Reserve, which released an analysis of the statistics, is that the 2004 numbers were understated because of interest rate aberrations. About 57 percent more buyers in 2005 than in 2004 took out two mortgages to buy houses, according to the new federal statistics. Such an arrangement, known as a piggyback loan, allows smaller down payments without requiring mortgage insurance. The second mortgage is usually at a higher rate than the first. The increase in costly mortgages is partly because more people are getting loans, even if they have bad credit and would not have qualified in the past. "Although affording many consumers greater access to credit, this growth also has led to concerns about the appropriateness of loan term and lending practices and the potential for unequal treatment of borrowers," officials of the Federal Financial Institutions Examination Council, the group that released the data, stated.

AND THE MORTGAGE INDUSTRY IS PRESSED TO REFORM: At a Senate Banking Committee hearing, legislators and consumer advocates prodded federal banking regulators to move more quickly to put restrictions on non-traditional mortgage lending, because, they said, the new kinds of mortgages may place borrowers and lenders at financial risk, reports the Washington Post. "It seems to me there's been a race to the bottom" in lending standards, said Sen. Jim Bunning (R-Ky.). He said that consumers don't seem to understand the new products, and that if real estate values continue to fall, the market "pullback" could become "a prelude to a crash." Added Sen. Charles E. Schumer (D- N.Y.), "There's a plethora of new products that are destroying the lives of a whole lot of people. These were intended for rich, sophisticated buyers but they have been sold to the least sophisticated and most vulnerable." The lending industry has defended non-traditional loans as a key reason that homeownership has reached a near-record high despite steep home prices. They say the loans can be tailored to meet individual needs, rather than the one-size-fits-all loans of past decades.

MORTGAGE RATES CONTINUE TO SLIDE: The 30-year fixed-rate mortgage (FRM) averaged 6.40 percent for the week, down from last week's 6.43 percent, according to Freddie Mac. Last year at this time, the 30-year FRM averaged 5.80 percent. The 15-year FRM this week was 6.06 percent compared with 6.11 percent last week and 5.37 percent last year. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.08 percent, down from last week's 6.10 percent. It was 5.31 percent in 2005. One-year Treasury-indexed ARMs were 5.54 percent this week versus 5.60 percent last week. At this time last year, it averaged 4.48 percent. "A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable," said Frank Nothaft, Freddie Mac vice president and chief economist. "For example, housing starts dropped to a three-year low in August and the Producer Price Index (PPI) fell below market expectations. Going forward, the economy is expected to expand at a somewhat slower rate than it did in the first half of the year. This should continue to keep inflation in check, and therefore, mortgage rates low."

BRITISH BANK SEES SOFT LANDING FOR HOUSING: An economic report by the American Express Bank concludes that a crash in U.S. house prices and an economic recession are unlikely, though the housing market "is particularly weak," says Inman News. "U.S. house prices will probably be flat or down for awhile, although price falls in former hotspots will be compensated by continuing catch-up in other regions," according to the "Economics for Investment" report by the bank, an international subsidiary of American Express. "The authors acknowledge that weakness in the U.S. housing market and a moderate economic slowdown does make the risk of a U.S. recession greater in 2007 but argue that a 'soft landing' is the most likely outcome," the report says. "Moreover, any signs of a harder-than-needed landing will likely be offset by lower interest rates and bond yields." The report notes that the run-up in house prices was "significantly smaller" in the United States than it was in the United Kingdom and Australia. A cause for concern, according to the report, is the slump in the construction of new homes: U.S. housing starts are down 10-15 percent and building permits are down 20 percent, and they fell the same amount after the market peaked in Australia. Adjustable-rate mortgages do pose "particular concern" in the United States real estate market because "short-term rates have risen far more in the U.S. than in the other countries and continued to rise after housing peaked last year," the report says, adding that interest rates are still relatively low compared with historical levels and "the majority of mortgages outstanding are still at long-term fixed rates."

HIS GUITAR IS NOT INCLUDED: Nick Hexum, the lead singer for the band 311, is asking $10 million for a private island in the Florida Keys that he bought for $2.8 million three years ago, reports the Wall Street Journal. Yes, three years ago. The roughly six-acre island lies a half mile off Summerland Key, about midway between Marathon and Key West. A 3,500-square-foot house features three en-suite bedrooms, a third-floor great room with a 300-gallon aquarium, and a crow's nest balcony on the roof where young Nick says he likes to play guitar. The island also has a pool, barbecue deck, cement pier and its own propane-powered generator. Previous owner Cris Lesick says the lights stayed on even during Hurricane George in 1998, when most of the area lost power. Hexum, whose rock/alternative/reggae band 311 had two platinum-selling albums in the 1990s, renamed the island Melody Key from Money Key, and says he spent several million dollars renovating it, only to have to redo much of the work after the home and island were damaged during last year's hurricanes. The singer, who has written several songs on the island, says he has too high a percentage of his assets tied up in the property, which he acknowledges is "mortgaged to the hilt." Nonetheless, he maintains that he won't accept an offer under $10 million. "Do not waste my time with $9,999,999," he proclaims. Right!

IS WASHINGTON'S POWER CENTER ON THE MOVE: Those who have been denouncing elitist "Georgetown dinner parties" all these years may not have noticed that a new elite has taken over - and it lives across the river, in McLean, Va., according to the Washington Post, which quotes the cover story in the newest New Republic. "So long Georgetown, McLean is the new home of America's ruling class," the magazine says. Over the past decade, McLean, formerly a sleepy little burg, has been overrun by hordes of Republican pols, pundits and lobbyists. McLean has become "the psychic center of the Washington Republican establishment," writes Michael Crowley. "It is packed with the people who impeached Bill Clinton, elected George W. Bush, launched the Iraq war, and have now learned to make millions from their association with government." McLean's 40,000 residents include GOP bigwigs such as Newt Gingrich, Scooter Libby, Colin Powell, Andrew Card, Liz Cheney, Bill Kristol, Clarence Thomas, Antonin Scalia - and scads of obscure Republicans who were Hill staffers in the Gingrich revolution. The average house there sells for $905,000, so don't expect much in the way of garage sales. "The migration of power from Georgetown to McLean represents the shift in American politics in microcosm," Crowley writes. "The Northeastern liberal elite drawn to the urbane sophistication of Georgetown has receded. In its place has risen a new conservative striver class . . . that has set itself up as landed gentry across the Potomac in McLean."

BUYING AND SELLING PROPERTY IN D.C. IS ABOUT TO COST MORE: Starting Oct. 1, the transfer and recordation tax will change in DC for all properties priced at $400,000 and above and closing after that date. Buyer and seller each have to pay 1.45 percent of the sales price at closing. For sales below $400,000, the transfer and recordation tax remains at 1.1 percent.

THE LEHMANS' FIFTH AVENUE HOME IS GOING ON THE MARKET: The longtime cooperative apartment of the late Lee Anz Lehman, widow of investment banker and philanthropist Robert Lehman, is about to go on the market for more than $30 million, reports the New York Times. The six-bedroom apartment measures more than 6,000 square feet and takes up the entire ninth floor of 2 East 67th St., a 1928 apartment building designed by Rosario Candela. It is one of the few Fifth Avenue apartments to retain most of its original floor plan and detailing, including 12-foot ceilings, five fireplaces, and a dining room, library and living room that overlook Central Park. Ms. Lehman, who died in June, bought the co-op in 1978 following the death of her husband, who ran Lehman Brothers for more than 40 years. The Metropolitan Museum of Art's Lehman Wing, which houses Mr. Lehman's nearly 3,000-work art collection, is visible from the apartment's living room. "It was a way of maintaining that bond [with her husband]," Ms. Lehman's grandson, Christopher Daniels, says of the apartment's view.

FORECLOSURES ARE ON THE RISE NATIONALLY, OR NOT: Property foreclosures nationwide increased 24 percent in August from the previous month and 53 percent from a year ago, marking the highest rate so far this year, according to a foreclosure service, says Inman News. A total of 115,292 properties entered some stage of foreclosure during the month, according to a report from RealtyTrac. The report also shows a national foreclosure rate of one new foreclosure filing for every 1,003 U.S. households, the second-highest monthly foreclosure rate reported year to date. This report is much bleaker than statistics reported by the Mortgage Bankers Association (MBA). In a survey of more than 42.5 million loans nationwide, homeowners appeared to be keeping up with their mortgage payments. MBA's survey found that foreclosures nationwide are stable. The percentage of home loans in the process of foreclosure nationwide at the end the second quarter was 0.99 percent, up 1 basis point from the last quarter, but down 1 basis point from the same quarter last year. Foreclosure.com also weighed in with its own statistics, says the Wall Street Journal. According to the company, which tracks foreclosures nationwide, new residential foreclosures fell by 6.7 percent in August from July to 26,255 nationwide. The company's figures, however, show that foreclosures are up 7.3 percent compared with August 2005. The divergent results can be explained by the way foreclosed properties are counted. RealtyTrac data includes properties in the early stages of a foreclosure proceeding, even before the bank actually owns those properties. About 60 percent of these get remedied or the properties are sold before they get to the auction stage, said Rick Sharga, vice president of marketing for RealtyTrac. If you've read this much, forget it.

IT'S ALL ABOUT YOU: Under the provisions of federal consumer law, if you want to obtain a free credit report from one or all of the big three credit reporting companies, all you have to do is visit AnnualCreditReport.com.

BLACK IS THE NEW BLACK: After years of favoring pale woods, bleached floors and taupe color schemes, furniture and decor companies are getting back to black as well as brown and grey, says the Wall Street Journal. The new interior hues come as the fashion industry is making its own shift toward somber shades, but some homeowners credit another influence: At a time of economic and political uncertainty, they say, darker colors reflect the mood and help to create a comforting retreat. Home decorators are embracing the new look, putting black-flocked wallpaper in the bedroom, deep-bronze faucets in the bathroom and shiny brown countertops in the kitchen. Kraftmaid has just introduced Venica, a line of black kitchen cabinetry, and Hunter Douglas has rolled out new window shades in colors such as Fossil, Granite and Henna. Pottery Barn's new ebony and mahogany furniture collection includes $1,600 wine bars, $800 bookcases and $700 pedestal tables, while Storehouse has introduced its "smoky charcoal" dining room, where everything from buffets to side chairs is done up in dusky hues. The look has even trickled down to sinks and faucets. Kohler is now selling sinks for the kitchen in "black black" and for the bath in "igneous black." Moen says sales of its Glacier white kitchen bar and sink faucets dropped 20 percent in 2005 from the year before and bright polished brass was down 75 percent, while dark oil-rubbed bronze finishes more than tripled and wrought-iron finishes were up 18 percent. The company released a new pewter faucet last month, which it showcases on its Web site in a black sink. Time to redecorate, trend spotters? Again!

BUYERS OF NEW HOMES SAYS TWO BUILDERS ARE TOPS: They are Pulte Homes and Centex Homes, which led the rankings in J.D. Power and Associates' annual New-Home Builder Customer Satisfaction Study, says Realtor magazine. The study includes satisfaction ratings of builders in 34 of the largest U.S. home-building markets. Pulte, including its Del Webb and DiVosta brands, ranks highest in 14 of the markets and Centex, in 13 markets. The study is based on responses from 60,927 buyers of newly built single-family homes who provided feedback after living in their homes from four to 18 months, on average.

BOARDWALK IS GONE, SO HOW ABOUT TIMES SQUARE: Monopoly is getting revamped for the 21st century, notes Business Week. Seventy-one years after the hugely popular board game made its debut, its familiar Atlantic City boardwalk, railroads, currency and old-fashioned die-cast tokens are making room for Times Square, airplane, and enough tie-ins with big popular brands to make even the most brazen Hollywood producer green with envy. If Monopoly constitutes a reflection of contemporary U.S. culture, here's the world we now live in. Most of the game's famous tokens are reemerging as branded products. They include a Toyota Prius, a New Balance sneaker, McDonald's French Fries, a Motorola RAZR, and a Starbucks coffee mug. The three nonbranded tokens are a laptop computer, an airplane, and a Labradoodle. Among other changes on the board: The old powerful railroads become the nation's busiest airports. Prices have gone up, too: It'll cost $4 million to buy Times Square, opposed to $400 for the old Atlantic City boardwalk.

YOURS CAN BE THE GRASS THAT'S GREENER: The lowest you should mow any cool-season turf is 2 1/2 inches, Washington Post columnist Joel M. Lerner advises homeowners. Growth of healthy lawn and germination of grass seed are most important when you remove thatch and aerate. Mowing higher retains more leaf surface on existing turf, which also shades the seed, holding moisture and helping with germination. Water lightly every other day to keep seed moist. A deep watering once a week will get established lawn growing quickly during this cool season. Plant a named, compact, turf-type tall fescue. There are disease-resistant and drought-tolerant varieties. Plant a blend of three varieties, based on the theory that even if one is lost the other two will succeed. Over-seed at a rate of three to four pounds per 1,000 square feet.

NEW YORK CITY EYES HOME-IMPROVEMENT CONTRACTORS: The Department of Consumer Affairs has filed complaints against 135 of them who are unlicensed, reports the New York Times. But the contractors can have their fines lowered if they obtain the required license and resolve all outstanding customer disputes. Punishment can include $100 fines for each day of unlicensed activity and seizure of vehicle and tools. To get a license, a contractor must have a background check, pass a written exam on knowledge of business law and contracts, and post a bond or pay into the Home Improvement Contractor Trust Fund. "Every year, home-improvement contracting complaints are at the top of our list of complaints," said Commissioner Jonathan Mintz of the Department of Consumer Affaires.

AT LEAST THE EARTH REMAINS ROUND: Eager to squeeze in more square-footage - and increase property values - while adhering to community height restrictions, a growing number of builders and homeowners are building homes with flat roofs, observes the Wall Street Journal. But these box-like structures and their party-friendly roof decks are sparking a backlash among neighbors who think the houses are homely, detracting from neighborhood character and blocking views and sunlight. Now, a number of communities are slapping new rules on builders that require sloping roofs. Communities everywhere from Delaware to Washington are addressing roof pitch. The trend is being driven in part by people seeking the best return on their investment amid soaring property values in recent years. It also demonstrates how zoning restrictions communities passed in recent years have backfired. In response to runaway development, many municipalities tried to prevent oversized homes on small lots. But in some cases, the unintended result was flat-roofed, boxy homes seen as out of character with surrounding styles. By using a flat roof, builders can sometimes squeeze in a second or third floor, adding square footage while staying under neighborhood height restrictions.

ENOUGH ALREADY: The number of real estate agents with active licenses now stands at an all-time high in the Washington area, says the Washington Post. More than 100,000 licensed real estate agents are working in Maryland, Virginia and the District, almost doubled since 2002. In the past year, an additional 4,000 real estate agents have gotten licensed in Virginia alone. But if history repeats itself, there is reason to believe that some agents will drop out soon. For instance, when the real estate business boomed in the mid-1980s, the number of agents in Maryland jumped, rising to 45,342 in 1987 from 33,642 in 1986, up 35 percent in one year, and then rose again in 1989 to 51,997 agents. Agents trailed out of the business during the slump of the mid-1990s, and by 2001, there were 28,856 active agents in the state. Now, however, there are 54,037 agents working in Maryland, an all-time high.

'KIDS' DO THE DARNDEST THINGS: Consumers in their 20s are more likely to become home owners at a younger age than their baby boomer parents, notes Realtor magazine. They're not necessarily waiting for marriage, or even a long-term relationship, before buying a home. The percentage of first-time home buyers under age 25 has been increasing in response to historically low interest rates and continued confidence in the long-term housing market, from 11 percent in 2001 to 14 percent in 2005, according to the 2005 Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), which publishes the magazine. While married couples are still the norm, they represent a smaller share of the home buying public than they did just 10 years ago, from 70 percent of home buyers in 1995 to 61 percent today, says the NAR. During that same time, the proportion of single women buying homes has increased, from 14 percent in 1995 to 21 percent today.

BUILDERS' MOOD SINKS TO 15-YEAR LOW: Reflecting increasing builder concerns about conditions in the market for new single-family homes, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) declined for an eighth consecutive month to a level of 30 in September. In August, index was 33 reading in August, and the latest reading was at the lowest level since February of 1991. Any number over 50 indicates that more builders view sales conditions as good than poor. "Builders are adopting an increasingly cautious attitude in their near-term outlook for new-home sales," said Chief Economist David Seiders of the National Association of Home Builders (NAHB). "They're experiencing falling sales, rising sales cancellations and increasing inventories of unsold units. And although many builders are offering substantial incentives to bolster sales and limit cancellations, many potential buyers now are waiting on the sidelines to see how the market shakes out before proceeding with a home purchase." Saying the nation was "in the midst of an anticipated adjustment period," he added that the NAHB is forecasting the numbers flattening out around the middle of next year and gradually moving back up towards trend in 2008. "In fact, the housing market that emerges from this correction will have better balance between supply and demand and will be able to ride on excellent underlying fundamentals for years to come," Seiders declared.

AND HERE'S THE PROOF: Total housing starts dropped 6.0 percent in August to a seasonally adjusted annual rate of 1.665 million units, according to the Commerce Department. The pace of new-home construction was down 19.8 percent from 2005, which was a record-breaking year. In addition, issuance of total building permits decreased 2.3 percent - 21.9 percent below the rate of a year ago. Single-family permit issuance was down 3.5 percent on a national basis, and multifamily permit issuance was up 1.1 percent - 11.2 percent below August 2005. Builders slowed the pace of single-family home construction by 5.9 percent, a 20.6 percent drop from a year earlier.

TIGHT NEW YORK RENTAL MARKET SPURS CHANGE IN CONDO MARKET: A cooling condo market and a dwindling number of available rental properties are prompting developers and owners of newly built apartments to rent out their units, says the Real Deal monthly magazine. In the burgeoning rental market in which demand exceeds supply, condo buyers are finding a good source of income in renting their apartments. And the competition for those apartments has become tight. Still, rental income in most cases is not yet covering the expenditures required to own a condo. Many developers have converted rentals to condos, then found it is more profitable to rent them out once again. Some developers are selling enough of the building to pay off the financing, then renting out the remaining units.

SHE'S A HOT DESIGNER. . . AND RIGHT ON TARGET: You'll find Victoria Hagan's stylish designs in the homes of late-night talk showman Conan O'Brien and Revlon chairman Ron Perelman, says the Washington Post. And now, they're just past the scrapbooking aisle at Target. The New York decorator is the latest label to land at Target, with a cheap-but-chic line of $7.99 vases and $179.99 buff-colored nesting tables, among other items. Known for her architectural interiors that blend periods, materials and finishes, Hagan, 45, says, "I believe in the mix. This collection . . . shows it's nice to be able to find beautifully designed things that are affordable."

BUILDERS ARE PULLING OUT THE STOPS: Faced with falling sales, some builders are helping would-be buyers spruce up their current home by bringing in professionals who advise them on what furniture to get rid of and tell them whether they should rip off the wallpaper, reports the Wall Street Journal. Others are offering to make payments on the buyer's old mortgage (or the new one) in an effort to close the deal. There is also renewed interest in so-called buyback programs: The builder, or a broker, agrees to buy your current home, for a preset price, if it turns out that you can't sell it. The offers are coming both from local builders and national firms. For instance, Pulte Homes Inc. recently started pairing its customers with professional "stagers" who sweep in and do things like remove window coverings and touch up the paint, and covering up to $2,000 of the cost of the service. The program is available in about a dozen markets, including Detroit, Indianapolis, Sacramento, Calif., Tampa, Fla., and Washington, D.C. For builders, the housing downturn has translated into slower sales and higher cancellation rates among prospective buyers who get cold feet. This month, Beazer Homes USA said that in July and August, orders fell 49 percent from the previous year's levels, and cancellations climbed to 50 percent from 26 percent in the same period in 2005. KB Homes said this month that orders for new homes fell 43 percent in its fiscal third quarter. The kinds of help builders are offering vary from market to market, and even from project to project. The best deals are typically offered on homes that are already completed, or near completion.

SLOWDOWN SEEN ON THE JERSEY SHORE: The housing market in New Jersey's coastal Monmouth and Ocean counties is slowing, but the bottom is not falling out, according to an article by the Asbury Park Press, notes the Wall Street Journal. The number of houses for sale has risen dramatically and real-estate agents are seeing "pages and pages of price reductions," the newspaper reports. However, some local real-estate professionals describe the market as "stable." Says one agent, "Prices may not be accelerating, but I do not see drastic reductions in prices at all." According to the article, 6,884 homes remained unsold in Monmouth County in the second quarter of this year, an increase of 57 percent from the second quarter of 2005. In Ocean County, there was an increase of 68 percent to 6,728 unsold properties, the article says.

AT THIS PRICE, IT BETTER LAST: Pantone is escalating the paint wars – the ones without foreign correspondents - with the introduction of its first retail paint line selling for what comes out to an astonishing $133 a gallon, notes the Washington Post. Pantone, which provides color systems for a variety of industries, is hardly a household name in the consumer world. But within the design community, the company is known for professional color standards and assuring color accuracy and consistency in graphic, auto, fashion and interior design businesses. While most American paints sell for $19 to $45 a gallon, Pantone's Dutch-made 2.5-liter Euro gallon (a smaller can than the American gallon) made by manufacturer Fine Paints of Europe costs $85 to $95. A fan deck of 3,000 colors is $165. Pantone touts the durability of its "filler-free" product, saying a proper Pantone paint job could last 12 to 15 years. Let's hope. Lisa Herbert, executive vice president of Pantone, says the paints are aimed at the high-end homeowner. Duh. "They are for someone who really wants high quality. The finish is very luxurious. It would take six coats of an American paint to achieve the brilliance and saturation of Pantone paint."

LOWER INTEREST RATES BOOST REFINANCINGS: For the week ended Sept. 15, mortgage loan application volume went up 2 percent on a seasonally adjusted basis from one week earlier, according to the Mortgage Bankers Association. On an unadjusted basis, the increase was 12.3 percent, but the volume was down 22.5 percent compared with the same week one year earlier. The previous week was shortened by the Labor Day holiday. Seasonally-adjusted, purchase applications decreased by 3 percent from the prior week, and refinancings rose by 9.5 percent. The refinance share of mortgage activity grew to 43.7 percent of total applications from 40.3 percent the previous week, and the adjustable-rate mortgage (ARM) share swelled to 27 percent of total applications from 25.5.

HE'S JUMPING INTO THE REAL ESTATE WITH BOTH FEET: Basketball star Shaquille O'Neal has started a real estate development company that already has bought more than $50 million in properties, according to Bloomberg News in Realtor magazine. The properties are primarily in California, Florida, New Jersey and Texas. The new company, O'Neal Group, will be based in Miami, where O'Neal plays for the Miami Heat basketball team. O'Neal Group's first development project will be Metropolitan Miami, also known as the Met, which will have 1,100 residential units, including the 866-foot Met 3, the tallest residential tower south of New York, as well as an office tower, a hotel and the area's first Whole Foods Market store. O'Neal plans to open a 24-Hour Fitness/Shaq Ultra Sport gym at the Met. "I've been in real estate now for 10 to 12 years," O'Neal told Bloomberg News in a telephone interview. "This right here furthers my interest and lets people know I'm in the game and in the game for good."

CUT IN D.C. PROPERTY TAX IS PLANNED: District homeowners will receive a tax break in less than two weeks based on a law approved by the D.C. Council last year, reports the Washington Post. The real estate tax rate will fall Oct. 1 to 88 cents, from 92 cents, per $100 assessed value, said Natwar M. Gandhi, the D.C. chief financial officer. The decrease is the result of a law that automatically lowers the property tax rate if tax revenue surpasses projections. For a property owner with a house worth $400,000, the savings will be $160 for the year, said Martin Skolnik, director of real property tax administration. But the tax rate reduction also means that the city will not collect more than $17 million that it would have amassed under the old rate.

THINK TANK SAYS TAX BURDEN IS LOWER FOR D.C. RESIDENTS: The D.C. Fiscal Policy Institute, a think tank that analyzes city tax and budget issues, has released a study showing that middle-income District residents earning $50,000 to $150,000 annually are paying lower taxes than do their neighbors in the Maryland suburbs and in most communities in Northern Virginia, reports the Washington Post. The conclusion is based on a study of income, property and vehicle taxes - levies that directly affect households, said Ed Lazere, the Institute's executive director. He added that the result contradicts the popular belief that D.C. residents pay more taxes than their suburban peers do. Comparing married couples with two children and earning $100,000 annually, the study found that District families pay an average of $4,619 in income and property taxes a year, families in Prince George's County pay $6,509 and those in Fairfax County pay $5,883.




Out and About with Malcolm
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Like everything, the Upper West Side has changed
 

Home to such venerable New York landmarks as Lincoln Center, Columbia University, the Cathedral of St. John the Divine, the Dakota Apartments, and Zabar's food emporium, the Upper West Side stretches from 59th Street to 125th Street, including Morningside Heights. So writes Sarah Waxman, whose work on the NY.com Web site is quoted almost entirely in this section. She notes that the area – far more than one neighborhood - is bounded by Central Park on the east and the Hudson River on the west.

The Upper West Side was settled by Dutch immigrants in the early and mid-seventeenth century, though not without resistance from the Munsee Indians living on the north end of the island of Manhattan. Warfare with and raids by the Munsees temporarily ended the northward expansion of the Dutch settlers in the 1650s, leaving them with a stretch of land north of the city known as Bloemendal.

Mainly farms and rolling countryside, Bloomingdale was a large producer of tobacco at the beginning of the eighteenth century (but not a department store). In 1703, Bloomingdale Road - later to become the Boulevard, and even later to become Broadway - was built to handle the traffic required by the increasing commerce. The road originated at what is now 23rd Street and stretched to 114th Street. By the late eighteenth century, many wealthy merchants had country estates in the relative isolation and wilderness of Bloomingdale, and fine homes and farms dotted the area.

The West End of the early nineteenth century was composed of small, distinct villages, which existed independently of each other. The wealthy (though rapidly becoming less "country") estates continued to multiply, elegant mansions competing with the rocky landscape. Despite the gridding and numbering of the streets in 1811, landholdings and natural obstructions kept this innovation largely theoretical until the end of the century. The 1853 creation and construction of Central Park displaced residents of the site, changing the economic face of the West End. As squatters and lower-income tenants were forced to abandon the park, many simply moved west, building small shacks and lean-tos. Every year the growing population brought the suburb closer to the big city, and by the end of the Civil War, the area once named Bloemendal, or "valley of flowers," was assimilated into New York City.

Despite its increasingly metropolitan feel, the West End remained largely underdeveloped throughout the nineteenth century. The projects that were undertaken - the improvement and widening of Bloomingdale Road and its rebirth as the Boulevard, the laying of new sewage systems, and the extension of the elevated railroad up the West Side by way of Ninth Avenue - appealed to forward-looking land buyers and developers, who nonetheless remained cautious.

Apartment buildings were, in many ways, the key to the successful development or "gentrification" of the area. Throughout the late nineteenth century, high rises shot up on the West End, as real estate developers invested in such grand projects as the Dakota and the San Remo. The avenues began to acquire their distinct characters: Columbus offered commerce; Amsterdam sported low rent housing and small shops; Riverside Drive (opened in 1880), an alternately elegant and seedy residential park-fronted way; and West End, a quiet residential street.

The Boulevard hosted an odd collection of hotels and vacant lots; many of these belonged to developers who continued to await an economic boom that would raise the value of their property and merit construction on a grand scale. Apartment housing pushed out the home-owner oriented row housing, which had dominated the building trends of the West End for half a century, and began to form the landscape of the Upper West Side that exists today.

Another addition to the modern New York cityscape was the subway system - the first in the country - which opened in 1904. It revolutionized public transportation and shoved the rickety "el" into obscurity; the elevated tracks were nonetheless left standing until 1940. Improved access enhanced the appeal of the Upper West Side, and as the nineteenth century came to a close apartment buildings proliferated, citifying the once rural West End.

In the 1890s Columbia University relocated from the East Side to Morningside Heights, taking over the grounds of the Bloomingdale Lunatic Asylum. Part of a rising intellectual/artistic trend on the Upper West Side, Columbia contributed to the already active cultural life. The artists and academics shared the neighborhood with the equally lively mob, which played and fought its flashy way through the early decades of the twentieth century. The roaring 20s found Riverside and West End Avenue still wealthy, but Broadway and areas east were seedier, with lower middle class families living in neglected old buildings. Development and construction ceased from the early thirties through the early eighties, and the Upper West Side's popularity and social attractiveness waned, making it an undesirable address.

Partially because of its racial, ethnic and economic diversity, the Upper West Side has retained a liberal constituency and a bohemian attitude. Major urban renewal, starting in the mid-'50s under Robert Moses, was the first step in the revival of the Upper West Side; in particular, furious debate centered on the slum clearance undertaken to make way for Lincoln Center in 1959. Despite its unpopularity throughout the'70s, the Upper West Side maintained a sense of community, attracting artists, writers and young families with its relatively low rents and neighborhood feel. The wealth of the '80s renewed the area, raising rents and drawing yuppies and their accompanying incomes; this influx prompted renovation of the grand old buildings of the earlier era.

Still seen as more intellectual and less wealthy than the East Side, the Upper West Side is, however, once again experiencing an inundation of young affluent 30-somethings, as the available apartments in New York began to disappear faster than they appeared on the market. Gentrification has wiped out many of the small businesses that once made the Upper West Side distinctive, but holdouts remain, and you can still find everything from good bagel shops to great bookstores and competent shoemakers.

Here is a small sampling of Upper West Side properties currently on the market:
  • On Central Park West in a vast complex, a condo with one-bedroom plus a second converted from the, one bath and expansive balcony with a side view of Central Park. If long hallways, low ceilings, parquet tiles, plentiful closets, an updated kitchen, gym, parking and extra storage are for you, you'll take to this 800-sf apartment in a full-service building offered not unreasonably at $799,000 with a $370 monthly fee.

  • A one-bedroom first-floor co-op in a pet-antagonistic pre-war building that has appealing features such as oak hardwood floors, high ceilings, ample foyer and sunken living room. Then, there's the bedroom, into which a huge enclosure protrudes to provide for an exterior entry into the basement. Maybe an aspiring go-go dancer would delight in practicing on that huge boxy intruder. At $549,000, this co-op with so egregious a defect is overpriced at $549,000 with an $820 monthly fee.

  • On a Broadway corner not far from Columbia University, an archetypically sleek Manhattan two-bedroom, two-bath apartment with floor-to-ceiling windows, washer/dryer, customized closets, stylish angles even in the 9 ½-foot ceiling, superior open kitchen and glamorous master suite. Listed at $1.499 million with a $912 monthly fee, this condo has attracted few lookers and no offers. That level of activity says it all.

  • A West End Avenue apartment with 15th-floor river views in a handsome pre-war building. This long neglected two-bedroom co-op defines "potential," all of it yet to be realized. The bones of the corner unit include a classic center foyer with 23-foot living room, windowed eat-in kitchen with an awkward L-shaped layout, two baths, maid's room and lots of sunlight. But the buyer will need to invest considerable sums to bring the apartment up to date in a 1924 building with full-time doorman, live-in superintendent and new fitness room. It is offered optimistically at $1.695 million with a $1,550 monthly fee.

  • Near the Museum of Natural History, a 5,500-sf brownstone that was converted 10 years ago from a 10-unit building and that still has too many vestiges of its past. This charmless dwelling has the cheapest imaginable parquet-tile floors, half-renovated rooms, nine fireplaces that serve merely for decoration, a roof deck, six levels, a young man sound asleep in one of the six bedrooms during a viewing, seven baths and nothing to justify the reduced offering price of $4.395 million. Perhaps the price explains why this property has been on the market since February.

  • A dreary one-bedroom co-op that all too clearly was carved out of a much bigger apartment. With ground floor views of a courtyard, high ceilings and a kitchen shoehorned into the living room, this newly listed unit is offered at about the right price of $445,000 with a $469 monthly fee. Upstairs in the same building, a lovely two-bedroom, one-bath, 1,300-sf apartment with first-rate kitchen, including washer/dryer, Bosch dishwasher, Viking stove, marble countertops and lots of room for eating, renovated bath, bright light from two sides, and building amenities such as a live-in super and a roof deck. On the market since May at $1.195 million, the place is priced above the current market.

  • On Amsterdam Avenue a block from an express top, a spacious 600-sf alcove studio with a small improved kitchen and bath, glowing hardwood floors and three closets in a pet friendly building with a part-time doorman and live-in super. The asking price is $435,000 with a $588 monthly fee, and that's just too much.

  • A four-story Brownstone that has been divided into four apartments in decent shape. Two of them are duplexes with spiral staircases and poor flow. There is a garden in the rear, a handsome façade and tree-lined block that ends at Central Park. Annual expenses are around $30,000 for the property, which can be delivered vacant, and the price is on target at $5.1 million. It is a good candidate to be converted back into a single-family home.

  • Half a block from Riverside Park, a stunning co-op in which one of three bedrooms was taken to expand the living room dramatically. The apartment in a 1910 pet friendly building has two baths, a maid's room, handsome modern windowed kitchen, good closet space, tiger oak floors throughout, basement storage space, washer/dryer and fourth-floor views overlooking a quiet tree-lined street. Beautifully renovated, accentuating period details, this apartment is aggressively priced at $2.68 million with a $1,330 monthly fee.


 

Around Town with Aelita
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Aelita Brolis, who views property all the time, recently found much worth seeing in Foggy Bottom and points elsewhere. Her impressions follow.
 
  • A gorgeous one bedroom condo in Foggy Bottom. Listed at $459,900 and only 14 days on the market, this is a unique gem that seems decently priced. It is 700 square feet, full of light and great angles everywhere. Everything is updated with granite and stainless. The ceilings are high. The one bathroom has two entrances. The parking spot – which is worth about $60,000 in that area – is HUGE and separately deeded. What a bonus! Residents are also allowed to build storage units on their parking spot if they so chose in this pet-friendly building. The condo fee is about $385, and that includes all the regulars plus cable TV and front desk service. The only utilities you have to pay are electric and phone. Wow.

  • A Foggy Bottom cooperative building I have been in more times than I can count, always looking for something decent but rarely finding it, well, for at least the right price. The location - a few blocks from the metro, the new Trader Joe's, GW, etc. is the best thing this 465-square-foot efficiency has going for it after 22 days on the market. It is listed at $195,000, and its monthly fee is $487/month. There is a rooftop pool and taxes are included, as are utilities, and you have a 24-hour desk. The unit is a rectangle. Its kitchen is outdated, the carpet is okay, but the plaster blistering off the walls does not do much for me. For the rather modest monthly fees and its fabulous location, if this rectangle was updated, I think someone could be quite happy there for the current asking price.

  • A spectacular townhouse in Foggy Bottom. Words can not appropriately describe this piece of craftsmanship. It has beautiful bamboo floors, bright light pouring in every window. Everything is brand new – from stainless to granite to cherry cabinets to cutting-edge electronics wiring throughout the main level. This historic home - built in 1900 - now has new walls, floors, roof, skylights, and plumbing and electrical systems. You want to move in the moment you walk in. Unfortunately, the kicker is that this is a 2-bedroom/1.5-bath home for $819,900 and has only street parking. You would have to LOVE Foggy Bottom and work just a block or two away to buy this townhouse. After 83 days on the market, many might agree with me.

  • An okay row home in Capitol Hill. The property thankfully is not too far from Lincoln Park, but $540,000 for a "nice" two bedroom plus den home with one bathroom and one powder room seems a bit optimistic in this market. The first floor feels a little dark. The larger bedroom is separated from the much smaller bedroom by the den/family room on the second floor. The good news is that all appliances are less than three years old and there is garage parking. A little back patio also exists but needs some love if you ever want to sit outside. I rate it a C+. It has been on the market for merely two weeks – so it is hard to tell – but I think a couple of $10,000's need to be knocked off the asking price for a quicker sale.

  • A stunning renovation in Columbia Heights and only two blocks from the Metro. This 3-bedroom/2.5-bath home is listed at $849,900 and has been on the market for two weeks. The beautiful architectural details have been meticulously restored – gorgeous inlaid floors, fireplace mantels, bay windows with their original glass, among other features. From the foyer, the sunny living room is off to the left and the reception hall lies ahead. From there, the inviting dining room could well accommodate a large dinner party' it flows into the state-of-the-art kitchen - everything from maple cabinets to Jenn-Air and Bosch appliances. Need I say more? Gorgeous. The three updated bedrooms still have the old school charm of a lovely 1900 Victorian but the bathrooms look perfectly and tastefully updated for the 2006 buyer. There is also parking for two cars, a deep front garden, a quiet rear deck and garden. Some one or ones will be very happy here.

  • A 1-bedroom/1-bath apartment in Cathedral Heights. It has been on the market since mid-May, and the sellers are still asking for $325,000. The space is quite nice, with 840 square feet with which to work. The windows face - after a little bit of grass - a thickness of trees – hence giving the unit a quiet and serene feel. The unit boasts a huge closet and is clean – just itching for a buyer. The coop fee with taxes included is almost $1,000/month. Those coop fees – so often such a drawback.

  • A single-family, detached home that I selfishly went to see in Brookland. As it is almost the exact replica of my own home, I wanted to see how someone else has decorated virtually the same space. Well, I am jealous. They done good. Listed at $519,000 and only four blocks to the Brookland Metro, restaurants and other neighborhood amenities, this cute bungalow brings out the charm of 1925, when it was built, and is beautifully complimented by all its 2002 renovations. Its curb appeal is what first draws you onto the welcoming porch. From there you have hardwood floors throughout the house, high ceilings, tons of light and loads of character. Upstairs are three bedrooms and one bath. The main level has a lovely living room, separate dining room, chef's kitchen and powder room. The lower level has been converted a fully finished basement with many window in its utility room, spacious family room and a little nook of a fourth bedroom and full bath. The back yard is completely fenced in. Its gardens just need one weekend with a green thumb and then would be perfect. Although I hope this seller does get his asking price, I think $489,000 might be a little more realistic. It has, though, been on the market only seven days.


 

DC Metro Market Update
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


The supply is finally shrinking as sales slide

The District
 
Condos and co-ops


Although the number of new listings grew by 19.1 percent in August, inventory continued a downward trend that began in June. Still, there were 208.4 percent more apartments on the market at the end of the month than the year earlier, with by far the biggest proportion of the 1,474 condos and co-ops offered at prices below $600,000. Of the 474 put on the market during the month, nearly half – 234 – were listed between $200,000 and $400,000.

Sales activity declined 2.5 percent, to 316, compared with the previous August. All of the decrease in ratified contracts was for apartments between $300,000 and $800,000. The month's sales were lower than every month since February but higher than the winter. Year-to-date volume was off 12.6 percent in most price ranges. Exceptions were at $150,000-200,000 and between $800,000 and $1 million.

The market absorbed a shabby 18 percent of the available condos and co-ops, a situation reflected by falling prices. The average sale was $406,086, and the median was $357,500. By contrast, last year's average was $426,576 and the median, $375,000. Yet, August prices were higher than the 2004 figures - $364,460 on average and a median of $325,000.

 

Single-family homes

New listings dropped 6 percent below the previous August, to 516 versus 549. As a result, supply edged down after remaining on essentially a plateau since April. The only substantial growth in homes added to the market was in the $700,000-800,000 and $1.25 million-$1.5 million ranges. The inventory of unsold properties reached 1,330 by the end of the month, 93.9 percent more than August of 2005. Except for an insignificant decline below $150,000, every level posted gains no lower than 22.5 percent ($1.5 million or more) and no higher than 132.7 percent ($300,000-400,000).

The volume of sales in August was lower than in any month since December, plunging 24.9 percent from one year earlier, from 417 to 313 signed contracts. Only between $1 million and $1.5 million did sales activity rise; it went from 12 to 18 properties under contract. For the year to date, volume slipped by 19.1 percent, with the biggest declines at levels below $200,000, at which price points there were 81 sales as opposed to 252 in 2005.

The absorption rate was only 19 percent, yet prices of single-family homes continue to climb. The average has gone from $628,179 last year to $653,444 in 2006, and the median, from $489,000 to $500,000.

 

Montgomery County

Condos and co-ops

The supply of new listings went up 6.3 percent in August, most of them below $400,000; the bulk, 319 of 459 put on the market, was between $200,000 and $400,000. At the end of the month, inventory stood at almost the same level as it did in July and July, and the summer's amount was higher than in the whole previous year. There were 1,030 condos and co-ops lingering on the market, 151.8 percent more than on Aug. 31, 2005. Increases were in the triple digits between $150,000 and $900,000 with the notable exception of $800,000-900,000, where 13 apartments awaiting buyers represented a 1,200 percent gain. Above $1.5 million, the four homes still on the market accounted for a 300 percent increase.

New sales fell 19.9 percent below the August 2005 activity. Of 254 ratified contracts, 120 were at the $200,000-300,000 level, but volume there was 20 percent smaller than in the previous August. Monthly volume hasn't been so low since January. As for the year to date, sales were off 16.7 percent, dipping to 2,219 from 2,663. Between $900,000 and $1 million, seven sales so far this year represented a 250 percent rise.

Of the 1,284 apartments offered for sale during the month, 20 percent found buyers. Even with an absorption rate of one out of five, prices edged up. The average in August was $313,644 from $306,544 last year, and the median was $285,000 from $275,000.

 

Single-family homes

There was a 1 percent decline in new listings from August to August, with pluses and minuses spread across the market. The biggest gain was 89.3 percent, from 28 to 53, in homes offered at $1.25 million-$1.5 million. For the first time in a year, supply inched down from July's peak. The number of properties still seeking buyers at the end of the month was 3,815, which was 119.6 percent more than at the same time last year. Growth in inventory ranged from 39.4 percent, to 251, for homes offered above $1.5 million to as high as 194.7 percent, to 828, for those at $400,000-500,000.

August sales volume was nearly even with that of June and July, but it was 22.3 percent below August 2005, falling from 1,155 to 898. Activity was down in every price range but $900,000-1 million (up 16.7 percent) and above $1.5 million (up 47.4 percent). Year-to-date volume also was lower by 22.3 percent, recording 7,438 sales in August versus 9,578 at the same time last year. The greatest declines were registered for houses listed under $400,000, and the only increases were for those above $1 million; sales at the high end totaled 439 this year and 403 in 2005.

The market absorbed just 19 percent of all homes that were active during the month, and prices stood higher than they were last year. The average has moved from $563,491 to $601,402, and the median, from $465,000 to $490,000.

 

Alexandria

Condos and co-ops

The number of new listings took a 9.8 percent dive beneath last August's 2005. Of the 185 put on the market, 139 were priced between $200,000 and $400,000. But there was an 8.8 percent increase at $200,000-300,000 and an 11 percent decrease between $300,000 and $400,000. From 12-month highs in May and June, the trend line started to turn down and continued in that direction, albeit modestly, in August. At month's end, there remained 594 unsold apartments, 154.9 percent more than in 2005. Predictably, the biggest categories were the two levels between $200,000 and $400,000, which accounted for 418 of those condos and co-ops. Each level had more than triple the number of apartments than at the same time last year.

Sales slid by 12.6 percent, to 111 from 127; the losses in signed contracts occurred above $200,000, except for the $400,000-500,000 level, which gained 35.7 percent, to 19. Notwithstanding, the month had more sales than any month since April. Year-to-date volume plunged 28.3 percent more or less across the board, although sales activity was at least twice the previous year's between $700,000 and $900,000, reaching 24 in comparison with 11 in 2005.

The absorption rate was, to put it charitably, an unremarkable 16 percent, and prices are beginning to level off. The average is $354,629, up from $343,872 last year and $273,560 in 2004; the median is $320,000, up from $311,000 in 2005 and $245,000 the previous year.

 

Single-family homes

New listings shrank 9.7 percent below the amount in August 2005, with virtually every price level posting declines. The notable departure was at $400,000-500,000, which rose 54.5 percent to 34. Supply went down for the first time since December, though it was higher than in the winter. The number of listings active at the end of the month was double that of the year before, reaching 446. There were triple-digit increases ranging from 140 percent ($300,000-400,000) and 226.7 percent ($500,000-600,000). At $400,000-500,000, the increase was 171.4 percent, and the three levels accounted for 198 of the unsold properties.

Sales activity fell 13.4 percent behind August of 2005, thanks to decreases at every single level but $600,000-700,000, which was up 166.7 percent, to 8. The month's volume of ratified contracts was greater than July's but below every other month since February. For the year to date, sales were down 19.9 percent, mostly in the double digits at every price point. The modest exceptions were at $900,000-$1 million, which went up 11.8 percent to 38, and at $1 million-1.25 million, up 4.2 percent to 25.

The market absorbed just 18 percent of available homes, and prices remain slightly higher than they were last year. From $666,068 last year, they have grown to $680,398 on average; the median has inched up to $603,000 from $599,999.

 

What it all means

There is no denying that the market has made a clear adjustment. Declining inventory is now established as a trend and sales have begun to show gathering strength in general. It seems obvious that sellers are starting to appreciate the existence of a new reality and that buyers are beginning to respond.

When it comes to buyers, the industry has lately referred to them as being on the sidelines. It's true: They are nervous about getting into the market too fast, before, they surmise, that mythical "bubble" bursts and prices plunge. With respect to stocks and bonds, that approach is called "market timing," and the professionals all say the strategy just doesn't work. Buyers need to bear that wisdom in mind. They are well advised to remember that interest rates will remain unusually low only for the time being. And they would do well to consider that any investment in real estate always bears fruit over a span of four or five years.

Depending on the individual's situation - how long sellers have owned their properties, how much "profit" they could realize even now, and how much risk buyers are willing to assume that higher monthly payments won't buy them lower housing value - this may well be the ideal time to act. The transition to a new market is not complete, but the direction is apparent.

 

Mr. Miller's Mortgage Rate Memories
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

Where did it start?

Co-founder and President/CEO of the Miller Samuel appraisal firm, Jonathan Miller is a certified general real estate appraiser in the state of New York and has been appraising properties in Manhattan for 20 years. Miller Samuel provided property valuations of more than $5,000,000,000 in the past year. The properties appraised and reviewed by Jonathan have all been located in the New York City borough of Manhattan.

Since 1994, Miller has written several widely read reports on the Manhattan real estate market for Prudential Douglas Elliman: The Manhattan Market Report (10-year analysis), The Manhattan Market Overview (quarterly) and The Manhattan Townhouse Report (10-year analysis). The reports are the first to cover the entire island of Manhattan and the only major studies that are independently prepared, making them the "reports of record." They are widely used by local, regional and national media as well as national and local lending institutions, various government agencies, the Federal Reserve, New York City Office of Management and Budget and the Internal Revenue Service. The reports have an annualized distribution in both print and internet downloads of more than 300,000 copies.

In 2005, he built and launched two widely read real estate blogs: Matrix: Interpreting the Real Estate Economy and Soapbox: Appraisal Ethics, Ideas and Industry Issues. His analyses and musings will appear in Realty Digest regularly. The following latest blog entry was published this week by Curbed:

 

Three Cents Worth: Time Lag

By Jonathan J. Miller, CRP

Memories of the frenzied real estate market of the past five years are sometimes a blur and I thought it would be interesting to mark the spot where the problems might have begun. Much of the changing real estate landscape (not just in New York) across the country is attributable to the rising property inventory and rising mortgage rates.

The housing boom probably ended by the 3rd quarter of 2005 but the groundwork for the shift likely occurred more than a year earlier. The momentum of the market carried activity for another year. By looking at the listing inventory and mortgage rates it would appear that the shift began in the first quarter of 2004.

Mortgage rates bottomed out and inventory dropped (although inventory dropped again at the end of 2004). The 30-year fixed remained flat but the 1-year rose steadily as the Fed began its measured rate increases, the first of 17, in June of 2004. It appears that the adjustable rate mortgage trend more quickly followed inventory trends (or vice versa), even though it represents about 30 percent of mortgage applications.

Inventory trended downward recently, but that was due to a drop in co-op listings. Condo inventory actually increased this summer. My takeaway from all this is it took 12-18 months for the change in mortgage rates to impact the housing market. The Fed did not increase rates today. My guess is the impact of interest rate changes from the last increase this summer will still be with us for a while.


 

This Week's New Listings - DC Metro
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Some of the Region's Latest Listings

Below is a fraction of the newest listings by agents in the District of Columbia, Maryland and Virginia. They include, condominiums, cooperatives and other homes in the Multiple Listing Service since Realty Digest's last issue.

WASHINGTON
2138 CALIFORNIA ST NW #508
$329900
Bedroom(s): 1
Full Bath(s): 1
In the listing agent's inimitable words: "SUPERB KALORAMA LOCATION & BLDG! PERFECT MOVE-IN CONDITION, FRESH & UPDATED! LARGE SUN-FILLED TOP FLOOR UNIT W/TONS OF CLOSETS & EXTRA STORAGE. OPEN FLR PLAN, COZY WOOD BURNING FIREPLACE, HWD FLRS THRUOUT, WASHER & DRYER TOO! WALK TO EVERYTHING-METRO, SHOPS, RESTAURANTS, SUPER E-Z PARKING! PET FRIENDLY BUILDING!"
MLS#: DC6193742

WASHINGTON
1718 CORCORAN ST NW #32
$349000
Bedroom(s): 1
Full Bath(s): 1
In the listing agent's inimitable words: "Gorgeous Dupont Circle Condo with hardwood floors, exposed brick, wood burning fireplace, soaring ceilings, granite countertops, updated bathroom, beautiful morning light, 17th St location, 3 blocks to Dupont Metro, shopping, restaurants galore. Condo fee includes all utilities, pets allowed. Open 9/24 2-5pm."
MLS#: DC6195366

SILVER SPRING
12814 MATEY RD
$439000
Bedroom(s): 4
Full Bath(s): 2
In the listing agent's inimitable words: "CHARMING, WELL MAINTAINED BEATIFUL 4 BED ROOMS 2 FULL BATH HOME WITH HARDWOOD FLOORS, FIRE PLACE , HOT TUB, FENCED YARD, FINISHED BASEMENT, STORAGE SHED AND MORE.. THIS BEAUTIFUL HOME IS PRICED TO SELL FAST! OPEN HOUSE ON SUNDAYS 1:00 TO 5:00"
MLS#: MC6190494

WASHINGTON
1254 EVARTS ST NE
$467000
Bedroom(s): 3
Full Bath(s): 2
In the listing agent's inimitable words: "Beautiful Renovated Home. Huge kitchen, lots of light, ceramic floors. Hwd floors, new carpet in bedrooms. Huge Mstr Bdrm with private bath. 9 ft ceilings, 2-zone CAC/heat, ready to move in. Walk to metro and shops."
MLS#: DC6191594

WASHINGTON
2127 CALIFORNIA ST NW #107
$479000
Bedroom(s): 2
Full Bath(s): 2
In the listing agent's inimitable words: "Wow! Live on fabulous California Street at this price! Location, Location, Location. Walk to Conn Ave shops, restaurants & amenities, & Dupont Metro. Spacious first flr 2BR, 2BA. Large bedrms of almost equal size , great closts, beautiful refinished HDWDS, new carpet, fresh paint, W/D in unit. Extra stoarge in basement."
MLS#: DC6195288

WASHINGTON
1325 18TH ST NW #401
$522000
Bedroom(s): 1
Full Bath(s): 1
In the listing agent's inimitable words: "One-of-a-kind designer-renovated 1BR + den w/ balc-- only 2 blks to metro. Expansive wall of glass. Granite & SS bar. 2 walk-in closets. Rare Donghia vanity w/ 2 SS sinks. Custom video & surr sound sys w/ spkrs & vol controls in each rm (3 flat panel TVs, 400 CD changer, more ALL CONVEY). PLUS roof deck w/pool. Pking avail in bldg."
MLS#: DC6191840

ROCKVILLE
10038 VANDERBILT CIR
$529900
Bedroom(s): 3
Full Bath(s): 3
In the listing agent's inimitable words: "WOW!!! THIS IS THE BEST PRICE TOWNHOME IN DECOVERLY, AND ITS ALSO IN GREAT CONDITION. GLEAMING HARDWOOD FLOORS ON THE ENTIRE MAIN LEVEL, MASTER BEDROOM, + ALL STAIRS. LARGE DECK OFF KITCHEN BACKING TO COMMON AREA. MASTER BEDROOM W/ SKYLIGHTS, VAULTED CEILINGS, + LARGE WALKIN CLOSET. FULLY FINISHED WALKOUT BASEMENT W/ GAS FIREPLACE."
MLS#: MC6191724

WASHINGTON
53 SEATON PL NW
$599900
Bedroom(s): 5
Full Bath(s): 2
In the listing agent's inimitable words: "Four level, renovated 5 BR, 2.5 BA Victorian in the heart of Eckington. Brazilian cherry hdwd floors, granite counters, skylight, exposed brick, new no fuss deck, loads of upgrades including new roof, AC. Parking too. Basement has full bath, kitchen, can be legal rental unit. Big house for the price."
MLS#: DC6193244

ALEXANDRIA
689 GLEBE RD W #2
$649000
Bedroom(s): 3
Full Bath(s): 4
In the listing agent's inimitable words: "A COMMUTER'S DREAM HOME! Luxurious 4-level, 3BR/4.5BA townhome with a 2-CAR GARAGE & REAR YARD! Minutes from 395, DC & METRO. Gourmet kitchen w/Granite, tile floors & upgraded appliances - built-in microwave & gas cooking. EACH BEDROOM IS A SUITE w/OWN PRIVATE BATH! 2 fireplaces, wet bar, washer/dryer & more! HMS WARRANTY!"
MLS#: AX6195445

POTOMAC
7801 TURNING CREEK CT
$739000
Bedroom(s): 3
Full Bath(s): 2
In the listing agent's inimitable words: "RARELY AVAILABLE END TOWNHOME AT THE EDGE OF CABIN JOHN PARK. CLOSE-IN LOCATION OFFERING NATURAL BEAUTY & SERENITY! SPACIOUS & ELEGANT! ALL BRICK EXTERIOR W FENCED GARDEN & PATIO. HARDWOOD FLOORS ON MAIN LEVEL. ELEGANT FOYER W TRAVERTINE FLOORING. UPDATED KITCHEN W GRANITE COUNTERTOPS & STAINLESS APPLIANCES. UPDATED BATHROOMS W GRANITE VANITY TOPS & CUSTOM FIXTURES."
MLS#: MC6191076

CHEVY CHASE
3300 CAMALIER DR
$829900
Bedroom(s): 3
Full Bath(s): 3
In the listing agent's inimitable words: "Charming Brick 3 BR & 3 BA Cape Cod, in the Heart of Chevy Chase. Open floor plan w/LR & DR , Delightful sunroom off of DR. Hardwood Floors, Insulated tilt-in windows. Plenty of storage. Detached garage, beautiful tree lined back yard. Walk to metro, Brookville market, and Chevy Chase Circle. Minutes to Downtown DC & Bethesda."
MLS#: MC6193182

WASHINGTON
1000 NEW JERSEY AVE SE #1108
$874623
Bedroom(s): 3
Full Bath(s): 2
In the listing agent's inimitable words: "3BR/2BA. Spec. stadium and monument views from balcony. 1 block to Metro. Beaut. new constr. Walk to stadium when blt. Mahogany hrdwd flrs thrghout. tile flr baths. Grmt kit. w/grant cntrtps, gas cooking, built in mcrwav, cherry cabs. indiv. w/d, full svc bldg w. indr pool, fit ctr, concgr. Prk fee $60/mo. xtra. Co-op fee incls underlying mrtgage pmt."
MLS#: DC6192733

ALEXANDRIA
807 FAIRFAX ST S
$879000
Bedroom(s): 3
Full Bath(s): 2
In the listing agent's inimitable words: "Agents: Your buyers will love this spacious TH in sought-after Yates Gardens. Updated LL w/fam rm, fpl, fresh paint, and separate entrance; gleaming hdwd flrs throughout; crown moulding; balcony off MBR; 2 full bathrooms upstairs; and an enchanting private backyard, patio, and tiered garden. Open Sunday, 9/24, 1-4pm."
MLS#: AX6194213

BETHESDA
7911 QUARRY RIDGE WAY
$899900
Bedroom(s): 3
Full Bath(s): 3
In the listing agent's inimitable words: "Best one yet! Totally updated kitchen with top of the line Viking and GE Monogram stainless steel appliances plus wine cooler. Each bedroom has a private bath. Located at the end of the community away from River Road, surrounded by mature trees. Many decorator touches throughout. True 2 car attached garage. Excellent condition. Lister readily available to show. Just 3 blocks outside of Beltway"
MLS#: MC6190724

WASHINGTON
4000 CATHEDRAL AVE NW #704B
$965000
Bedroom(s): 3
Full Bath(s): 2
In the listing agent's inimitable words: "Elegant & gracious 3 BR, 2 BA, bright & sunny on 7th floor, views of National Cath., 3 exposures. 2,200 sq ft includes room size foyer, spacious LR w/ solarium, banquet size DR, renovated & extra large kit w/ sep pantry / serving area, updated elec., marble countertops, lovely parquet floors, 9' ceilings, rare house-size apt. with well proportioned rms."
MLS#: DC6195558


To see photos, more information and scores of other listings, please visit our website at http://www.ServiceYouCanTrust.com, then fill in the appropriate blanks in the box titled D.C. Metro Quick Search. To view details of a particular property listed above you will need to note the MLS number.


 

This Week's New Listings - Manhattan
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Some of Manhattan’s Latest Listings

Below are just a few of the newest listings of condominiums and cooperatives put on the market by various brokers.

308 W 103rd St - 10A, NEW YORK, NY, 10025
$319000
Bedroom(s): 1
Bath(s): 1
Listing #: 806995

212 E 88th St - 2A, New York, NY, 10128
$339000
Bedroom(s): 1
Bath(s): 1
Listing #: 807526

444 E 75th St - 4F, NEW YORK, NY, 10021
$359000
Bedroom(s): 1
Bath(s): 1
Listing #: 807843

230 West End Ave - 10F, NEW YORK, NY, 10023
$425000
Bedroom(s): 1
Bath(s): 1
Listing #: 806832

2 South End Ave - 3G, NEW YORK, NY, 10280
$430000
Bedroom(s): 1
Bath(s): 1
Listing #: 806759

372 Central Park West - 3S, NEW YORK, NY, 10025
$469000
Bedroom(s): 1
Bath(s): 1
Listing #: 216659J

333 E 66th St - 3J, NEW YORK, NY, 10021
$499000
Bedroom(s): 1
Bath(s): 1
Listing #: 807654

300 Albany St - 3D, NEW YORK, NY, 10280
$500000
Bedroom(s): 1
Bath(s): 1
Listing #: 808087

2025 Broadway - 24B, NEW YORK, NY, 10023
$525000
Bedroom(s): 1
Bath(s): 1
Listing #: 807245

1160 Third Ave - 5K, NEW YORK, NY, 10021
$539000
Bedroom(s): 1
Bath(s): 1
Listing #: 807488

85 Eighth Ave - 4E, NEW YORK, NY, 10011
$813000
Bedroom(s): 1
Bath(s): 1
Listing #: 807321

575 Park Ave - 404, NEW YORK, NY, 10021
$1150000
Bedroom(s): 2
Bath(s): 2
Listing #: 806993

1130 W 67th St - 3D, NEW YORK, NY, 10023
$1300000
Bedroom(s): 2
Bath(s): 2
Listing #: 807566

1 River Terr - 5M, NEW YORK, NY, 10282
$1700000
Bedroom(s): 3
Bath(s): 3
Listing #: 902978J

120 E 87th St - P26AB, NEW YORK, NY, 10128
$5425000
Bedroom(s): 5
Bath(s): 4
Listing #: 808073

To see photos, more information and scores of other listings by brokers throughout New York City and Long Island, please visit our website at http://www.ServiceYouCanTrust.com, then click on the appropriate area. To view details of a particular property listed above you will need to note the address.

 

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© 2006 Service You Can Trust
 

Long and Foster
Real Estate, Inc
®
Chevy Chase Uptown Office
202.537.6000




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Real Estate
®
New York Office
212.891.7684