Loudoun Mortgage Rate Round-Up – November 28, 2008

If you're a home buyer right now, you're loving life. Prices are down and mortgage rates have  plummeted over the last few weeks. The national average is back under 6 percent - 5.91 percent with .13 in discount and origination points, to be exact.

Locally, rates tend to be slightly better with the 30-year fixed rate mortgage being around 5.8 percent with .13 in points (as of Wednesday). But, one of my buyer clients was just quoted 5.875 with no points and no origination fee…on a "jumbo-conforming" loan (above $417,000). The fact that it's a jumbo-conforming loan at that rate with no points is huge! (Those types of loans usually cost .25 to .75 more in interest than "conforming loans")

The reason for the plumetting interest rates? The effect of the Fed bail-out and continued influx of money into the credit markets is finally being felt. The move on Tuesday by the Federal Reserve to buy $500 billion of mortgage-backed securities over the next year and a half also helped. In fact, immediately after the Federal Reserve made the announcement on Tuesday, rates fell to as low as 5.25 before coming back up to just below 6 percent.

A drop in rates is exactly what the Fed was aiming for. In its announcement, the Fed said,

"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally."

If you're looking to buy real estate or refinance right now, you're sitting in a great seat when it comes to interest rates.

Source: Bankrate.com

How I Survived Black Friday in 10 Easy Steps

"30% OFF!!", "50% OFF!!", "70% OFF!!!"

"Black Friday" – it's hard to resist such huge savings on the greatest sales day of the year. But how do you survive the mayhem and chaos that ensues in every store, mall and parking lot across America on this crazy sales day?

I'd like to share with you how I survived Black Friday. It was really quite simple and consisted of 10 easy steps:

1. I "slept in" past 4 am.
2. I enjoyed a home-made breakfast and sipped on fresh-brewed coffee that didn't cost me $3.50.
3. I didn't drive to the mall while half-asleep behind the wheel of my car. I was safely waking up on my couch which cost me $0.00 in gas money and tolls.
4. I battled catching up on my Google Reader and emails rather than battling SUVs for a parking space.
5. Rather than suddenly stopping or swerving for those $%@#! people who abruptly stop in the middle of the mall hallway for no reason, I only had to look left then right when going through a stop sign on the way to my parents house to pick-up leftovers (they insisted we take them)
6. The only line I waited in today was…actually…I didn't wait in any line today!
7. The only person I had to make sure I didn't lose sight of was my dog while walking him (he goes into a full sprint in less than 3 steps when he sees a squirrel-sometimes I lose that game of "tug of war")
8. I found the same, if not better deals online directly from manufacturer and discounter sites (including free shipping).
9. If I wasn't sure about the item I was planning on buying fitting, etc., I had already gone to the store before Black Friday and patiently waited until the big sales to buy it online.
10. I previewed properties and worked with buyers today (which is a dollar producing activity) rather than spending my time, energy and sanity battling the mobs of people at the mall.

Not to worry…these 10 steps are for anyone. All you need is a computer and an internet connection and you're good to go!

Happy Turkey Day!

First Annual Brambleton Christmas Tree and Menorah Lighting

Brambleton is pleased to announce their first annual Christmas tree and Menorah lighting event which will take place at the Brambleton Town Center on Sunday, December 7th at 5:30 PM.  Head over to the Town Center to find great gifts throughout the stores and enjoy hot chocolate, cookies and strolling carolers as you shop. Then at 5:30 PM, gather in the center plaza for the official lightings and more entertainment, including local children singing Chanukah songs. Take a horse-drawn carriage ride around the Town Center from 5:30 to 7:30 PM. 

Cycling and Raising Money for Diabetes Research

 

Come join me and 1200+ other cyclists from across the Washington, DC metro area in raising money for diabetes research at the American Diabetes Association (ADA) 2009 National Capital Tour De Cure (formerly known as the Reston Tour de Cure). 

The 2008 National Capital/Reston Tour De Cure was the 5th largest ADA Tour De Cure event in the U.S., raising over $489,000 for diabetes research. We're hoping to make next year's event even more successful and fun by improving the event and raising at least $560,000.

To do that, the ADA National Capital Tour de Cure needs your help. Whether you're a sponsor, team captain, team rider, individual rider or a volunteer with the 2009 Reston Tour De Cure, your help is needed and greatly appreciated.

The ADA Reston Tour De Cure committee and staff know that everyone is watching their budgets, especially as of late. But there are others ways to help without donating money out of your own pocket such as raising money or volunteering your time.

Registration for the event is now open. The event is being held June 14, 2009 and will start at the Reston Town Center in Reston, Virginia. The Tour will most likely go through Reston, Herndon, Sterling, Ashburn, Leesburg and Purcellville as it has in years past.

Here are the various links to information on how to register and how you can get involved:

• sponsorship opportunities
• become a team captain/create a team
• join an existing team
• individual rider
• volunteer

Also check out the 2009 National Capital Tour de Cure's LinkedIn and Facebook groups and Myspace and Twitter profiles. We'll be posting the latest news about the Tour and what's going on behind the scenes including committee meeting minutes, sponsors, route information and other updates. If you have feedback or suggestions, don't hesitate to email, leave a comment or send a "tweet" anytime.

P.S. The National Capital Tour de Cure is always looking for help with getting the word out about the event and raising money for diabetes research. If you'd like to help spread the word or promote the event, feel free to leave a comment here with your contact information or contact me directly via email or on my cell.

2009 Conforming Loan Limits Increase For Loudoun, DC Metro Area

The 2009 conforming loan limits for Loudoun, Fairfax, Prince William, Arlington and other counties and areas in the DC metro area have been increased.

• Loudoun County – $625,500
• Fairfax County – $625,500
• Prince William County – $625,500
• Arlington County – $625,500
• Falls Church City – 625,500

But don't get too giddy about the increases…the higher loan limits will not impact the majority of borrowers and only slightly impact the few that those types of loans are best suited for.

For a complete list of area across the U.S. where 2009 limits have been raised, check out this post over at The Real Estate Bloggers.

FranklyMLS.com Versus the New HomesDataBase.com

HomesDataBase.com just announced that they have revamped and launched a new and improved version of their search site (in beta). But how does it stack up against one of my favorite search sites, FranklyMLS.com?

FranklyMLS.com

FranklyMLS.com has been blowing away the competition in terms of speed, ease-of-use and practicality. The list of features is awesome and continues to grow weekly. It was one of the first search sites to come out with keyword search function (think "granite countertops" or "bank owned").

You can also quickly see whether a property is a short-sale or not thanks to a " * " next to the price. This is great so you don't waste your time looking through the remarks section of each and every listing to determine whether it's a short-sale or not.

It also has a "cell-phone feature" which allows you to easily browse listings on your PDA while on the go or while sitting in front of a home for sale. The site loads quickly on your PDA and the thumbnails are a perfect size for most screens.

HomesDataBase.com

The new HomesDataBase.com allows to customize your search pretty well. You can also subscribe to an RSS feed which makes it easy to keep up with new listings and information from the site. One thing that HomesDatabase.com has that FranklyMLS.com does not is a map feature. Personally, I don't use mapping features on listing sites so I'm impartial, but others may love it.

It took a hint from FranklyMLS.com and created a keyword search feature of their own. But it's not as accurate or effective. The site isn't as quick as FranklyMLS.com, but it does just fine on my home high-speed connection. As for looking at it on your cell phone, you can. But it's by no means as easy as FrankyMLS.com

Overall, HomesDataBase.com has done a good job with its' new and improved site and many consumers and agents will find it very useful in searching for homes and communicating with their clients.

The winner is…

In my humble opinion, FranklyMLS.com still holds the top spot. Why? Because being able to efectively filter through all the "noise" using a superior keyword feature and differentiate between traditional resales, short-sales and bank-owned foreclosure properties is more important to me than than any "cool maps" or way-too-in-depth search criteria most of which doesn't apply to 99 percent of buyers anyway. And I'm on the road a lot so I need instantaneous access to listings and property information using my Blackberry. 

If you haven't yet, check out both sites and come to your own conclusion.

Loudoun County Tax Rate Increasing for 2010

 

Loudoun County's real estate property tax rate will increase in 2010 to meet the current and future needs of the county's school system and other programs. There is a large budget shortfall due to an average drop of 8 percent in residential values and 2 percent in commercial values. In reality, it's due to poor planning on the part of Loudoun County, but that's a discussion for another time…

According to the Loudoun County school system and county officials, the county needs to raise the tax rate to at least $1.26, if not $1.35 per $100 of assessed value. The current rate is $1.14, which is a 19% increase from $0.94 just two years ago.

Should the tax rate be raised to $1.26, that would be a 34 percent increase in just three years. If the tax rate were raised to $1.35, that would be a 44 percent increase.

On a side note…in this area, only the Town of Leesburg and Manassas Park have higher tax rates than Loudoun County ($1.32 and $1.27). Should the increase to $1.35 occur, Loudoun would have the highest tax rate in the area. Remember when Loudoun was attractive to home buyers due to having a lower tax rate than Fairfax? So much for those days…

The Loudoun County school system posted an article on their web site about this issue. Here's an excerpt:

Loudoun County Deputy Chief Financial Officer Ben Mays detailed the budget outlook that was presented by County Administrator Kirby Bowers to the Board of Supervisors and the School Board earlier in the week. Figures contained in this analysis include:

• At the current real estate tax rate of $1.14 per $100 of assessed value, the county government would face a revenue shortfall of $27 million and the school system a shortfall of $70 million in Fiscal Year 2010. That shortfall would come from the funding level of this year's budgets.
• A tax rate of $1.26 is necessary to get the county government and school system back to the same funding level as this year.
• A tax rate of $1.35 would be needed to accommodate the anticipated increase in budget items, including school enrollment growth. (This rate would not fund raises or new programs, but would cover things such as increased insurance and retirement costs on current county employees.)

Will Loudoun County home owners pay the higher tax rate? According to some, they will because they want a higher level of service and are willing to pay for that. But it may affect the decision of future home buyers who may view Loudoun as less attractive than before due to higher taxes and a higher monthly house payment.

Whatever the Loudoun County tax rate increase for 2010 will be, there is sure to be one and it will go into effect July 1, 2009.

“How’s the Real Estate Market?”, “How’s Business?”

"How's the real estate market?" and "How's business?" are two questions I get asked almost on a daily basis. Whether it's a client, family member, friend, acquaintance or someone I just met, everyone wants to know what someone who's on the "street" every day is seeing and hearing.

"How's the real estate market?"

The market is improving for sellers and getting tougher for buyers. Here's why…

• There are less homes on the market today than since the end of the boom market in 2005. Less inventory means less competition for sellers. This is good for sellers and bad for buyers.
• Short-sales are becoming more and more popular which is good for traditional sellers and banks with REO listings because most buyers stay away from short-sales (with good reason) meaning less homes for buyers to actually choose from. This goes back to my first point.
• Banks are starting to "freeze" foreclosures meaning less new bank-owned properties will be coming on the market in the near to mid-term future. This goes back to my first point as well.
• Interest rates are still near 40 year lows and have dropped some over the last few weeks. This is great for buyers.

"How's business?" 

• The year started off slow and steady and remained that way through late spring
• The summer was great with buyers coming out in packs to pick up great deals at low interest rates. Many buyers felt comfortable that prices had come down significantly and felt it was time to make a move after waiting it out for months, if not years.
• The summer rush ended near the beginning of October and buyer demand dropped off through Election Day. I think things slowed down because people were busy worrying about the financial crisis, the federal bail-out, the stock markets tanking and the uncertainty of one of the biggest elections in U.S. history. 
• Since Election Day, buyers have come back out and it's been a really busy few weeks with little time for rest. I see this continuing through the end of the month and possibly into December.

If you have specific questions not answered here, email or call me anytime.

No One Is Unaffected By The Housing and Financial Crisis

If you can't see the video, click here.

Thanks Dan!

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